IHOP, Applebee’s may combine in US, following international success

Two of America’s largest restaurant chains may soon become one.

IHOP and Applebee’s, which are both owned by Dine Brands Inc., may implement dual-branded locations in the United States that have a shared back-of-house space and blended front-of-house. 

The concept was discussed during an earnings call from the company last week.

Dine Brands’ CEO John Peyton said the IHOP-Applebee’s dual-branded model "continues to perform well" in its international markets. The company opened its eighth restaurant in January in Leon, Mexico. 

General views of the corporate headquarters Dine Brands, home of IHOP and Applebee's restaurants. (Credit: AaronP/Bauer-Griffin/GC Images)

"We will continue to monitor the success of this test concept and will consider options for further expansion in the U.S. in select locations if and when it makes sense to do so," Peyton said in a statement to FOX Television Stations.

In an interview with Nation’s Restaurant News (NRN), Peyton said the restaurants will have "discrete entrances," while inside guests can flow between the two spaces.

"At breakfast, when there are more IHOP customers, customers can be seated in the Applebee's area and vice versa at dinner," he told the publication.

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With the same square footage as a traditional standalone IHOP or Applebee’s restaurant, Peyton told NRN that the international co-branded units are generating twice as much revenue.

"Which you would expect. They continue to perform well in their markets because they address all four dayparts," Peyton added. "It’s a fantastic opportunity because the two brands are complementary."

NRN said we may see shared IHOP-Applebee’s restaurants in the U.S. as early as 2025.

This story was reported from Los Angeles.