NEW YORK At the opening Monday of the chain's 2,000th U.S. store, executives of Applebee’s Neighborhood Grill & Bar introduced new menu initiatives as the casual-dining brand works to remain relevant in a tough economic climate.
Applebee’s, considered a bellwether of the casual-dining segment, has struggled amid an economic downturn and changing customer tastes. The introduction of the health-focused "5 for under 550" lineup of lower-calorie dishes, as well as a physical redesign of the menu itself, are two things Applebee's president Mike Archer said would help the brand in its plan to be as contemporary as its guests.
“We’re not going to see growth the way we saw it before,” said Archer, who attended the opening of the chain's latest store in Harlem. “We’re in a place right now where we’re fighting our first-ever share war. Now our growth will have to come organically from sales at the restaurants we already have.”
Applebee's parent, Glendale, Calif.-based DineEquity Inc., has been working to turn around the chain since acquiring it in 2007. Efforts have included a refranchising program, value offerings and operational improvements. Still, slow sales continue to plague the brand, which saw domestic same-store sales fall 6.5 percent for its most recent third quarter.
Archer, who left T.G.I. Friday’s last year to join Applebee’s, said the chain has now turned its focus on increasing the quality and flavor profiles of its food, such as new sandwiches and a revamped burger program.
“We’re taking another look at everything we do,” he said, “updating it and bringing a new and different feel to everything — new products, creative. We’re contemporizing it so we can stay in step with our guests and their tastes.
"Great restaurants always reinvent themselves," he added. "It’s not revolution, but evolution."
The “Five for Under 550” program, introduced systemwide Monday, features five full-size entrees that contain less than 550 calories each. The menu items range in price from $10.99 to $16.99 and include such dishes as a 7-ounce Asiago Peppercorn Steak and a Spicy Shrimp Diavolo pasta.
Unlike the chain's Weight Watchers menu items, Archer said the "Five for under 550" dishes are aimed at customers who want to eat more healthfully, but are not necessarily on diets.
“More people are looking to eat better,’ he said. “It’s a very broad menu that runs the gamut. We can bring great flavor to anything we do, but we have to meet the needs of the people we serve.”
The 2,000th Applebee’s store, which opened Monday in the Harlem area of New York, is owned by Apple-Metro Inc., a 35-unit franchisee. Zane Tankel, president and chief executive of Apple-Metro, said the new restaurant created 200 jobs for Harlem residents.
“I think it’s ideal for the brand; I always thought that,” he said. “We always do well in underserved markets."
Apple-Metro owns and operates Applebee's restaurants in all five borough of New York City as well as in nearby Westchester County, N.Y.
Contact Elissa Elan at [email protected].
