Dine Brands, the parent company of popular restaurant chains Applebee’s and IHOP, is making a strategic push to attract frustrated fast-food customers. CEO John Peyton acknowledges the fierce competition for diners’ dollars from full-service restaurants, fast-food chains, and the trend of eating at home.
Applebee’s, in particular, is ramping up its focus on value promotions such as Dollaritas and the Whole Lotta Burger for $9.99 in an effort to lure in customers who may be looking for affordable dining options. With low-income consumers visiting restaurants less frequently and spending more carefully when they do eat out, Applebee’s is looking to offer competitive deals to bring customers through their doors.
Despite facing challenges, Dine Brands reported first-quarter earnings below Wall Street estimates but remains optimistic about their full-year outlook. To meet this outlook, Applebee’s will need to improve their same-store sales in the coming months.
Interestingly, McDonald’s, a fast-food giant, is also feeling the pressure from casual dining chains like Applebee’s and Chili’s. Recent pop-culture moments have given Applebee’s an edge in attracting customers, with Peyton noting that the restaurant resonates with people due to its familiarity in pop culture.
Overall, Dine Brands is confident in their ability to compete in the ever-changing restaurant industry landscape. By offering compelling deals and staying relevant in pop culture, they are hoping to capture the attention of diners who are seeking a satisfying and affordable dining experience.
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