Applebee’s and IHOP are teaming up to open their first-ever dual-branded restaurant in the U.S., combining the two concepts under one roof.
It’s set to open in Seguin, Texas, a suburb of San Antonio, in the first quarter of 2025. Dine Brands (the parent company) is developing the store with R. Hakim Group, one of its franchisees.
The location will replace an existing IHOP restaurant, which is closing for renovations in November.
The dual-branded restaurant will open in Seguin, Texas in 2025.
One of the reasons for this dual-brand approach is to take advantage of dayparts. With IHOP serving breakfast and Applebee’s focusing on lunch and dinner, the two have the potential to attract more consumers. Plus, Applebee’s and IHOP have distinct peak times. IHOP is known for its breakfast and brunch crowds, while Applebee’s is known for lunch, dinner, and late-night dining.
“It’s really a B-to-B product in the sense that it’s got complimentary dayparts, a shared kitchen, a common menu, cross-trained staff,” said John Peyton, Dine Brands CEO on the latest company earnings call. “These could help starve off closure for some challenged restaurants…because the addition of a second brand may improve unit economics.”
It will also feature a drive-thru window as Applebee’s and IHOP have been investing further in their off-premises operations.
The plan is to have 15 sites in the U.S. approved for dual-branded growth. While the Seguin site is the first location in the U.S., IHOP and Applebee’s have already successfully tested the concept in international markets, including Saudi Arabia and Kuwait.
This all comes as both brands look to boost sales. Applebee’s has seen a decline in same-store sales recently, with a drop of 5.9 percent in Q3 2024, while IHOP’s sales also fell by 2.1 percent.
