Amid speculation that the owners of Applebee’s and IHOP are considering combining both brands into one restaurant, a version of that mashup has been quietly operating in Detroit for six years.
Pasadena, Calif.-based Dine Brands owns the iconic chain, and CEO John Payton recently announced that the company wants to expand its double restaurant concept from places like Mexico to the United States. It became a hot topic.
“If we have two brands, we can cover all four-day parts. This is a big innovation that we are cultivating overseas, and if we find the right opportunity to introduce it, we will eventually bring it to the U.S. It is our intention to introduce the same,” Payton said in February. During an earnings call with Wall Street analysts.
But Payton didn’t mention that this novel idea already exists in the United States – since June 2018, to be exact.
TEAM Schostak Family Restaurants opens the world’s first Applebee’s/IHOP combo restaurant in downtown Detroit. Marriott Courtyard Hotel Vice President John Andrews declined to comment further, but said things were going well.
The restaurant, nicknamed “IHOPplebee’s” or “Beehop” by its franchisees, opened at the request of General Motors, said Jeff Pittel, the restaurant’s director of openings. eater detroit at that time.
Applebee’s doesn’t typically serve breakfast, so TEAM Schostak asked Dine Brands for permission to combine the two brands into one.
In the morning, it will only serve breakfast from 6:30 a.m. to 11 a.m. Lunch and dinner will transition to a combination menu of IHOP and Applebee’s.
The two-sided menu (one from IHOP and one from Applebee’s) has been pared down.
For example, only Applebee’s hamburgers are served, according to the report.
“People are very interested because no one has ever done it before,” said Mark Szostak, the company’s executive chairman. detroit free press at that time. “People are watching this to see how this develops and how these two brands come together.”
Dine Brands did not respond to requests for comment about the Detroit combo restaurant, other than to provide prepared remarks by Mr. Payton on a conference call with analysts in February.
“Dine Brands’ IHOP/Applebee’s dual-brand prototype continues to perform well in our international markets,” Payton added. “We will continue to monitor the success of this test concept and explore options for further expansion in select U.S. locations as needed.”
Payton also said there are eight such eateries outside the United States.
“What the restaurants in Detroit are doing may not be the model that corporate headquarters are considering,” said Steve Zagor, a food studies professor at Columbia University Business School. “But some of the best ideas usually come from our franchisees, including Big Mac.”
added restaurant consultant Arlene Spiegel. “If this franchisee is aware of this, [Dine Brands] It’s a lifeline for two brands that are starting to get a little tired. ”
Dine Brands sees the combination idea as a way to boost sales at decades-old restaurants that have recently struggled to attract new customers.
Same-store sales at 1,800 IHOP restaurants worldwide increased 1.6% in the fourth quarter, while sales at Applebee’s 1,600 stores decreased 0.5% over the same period, the company said.
Applebee’s and IHOP, two stores outside the U.S., generate “more than twice” the revenue of stand-alone restaurants, Payton said on an earnings call.
The Detroit restaurant has received mixed reviews so far, with most guests leaving negative comments about the hotel.
“This is more than just a place to rest your head,” one customer wrote on Yelp. “In the lobby he has an Applebee’s and his IHOP. These aren’t the coolest places in the world, but it’s actually fun to be able to get off the elevator at night and have a drink and then have breakfast the next day.” is.”
“The food at IHOP was great and the Applebee’s and staff were friendly. But be prepared for very slow service,” wrote another person on Yelp.
