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Applebee’s To Close 35 Additional Locations in 2024

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Applebee’s To Close 35 Additional Locations in 2024
Source: Pinterest

Applebee’s To Close 35 Additional Locations in 2024

Source: Pinterest

Many fast-food chains are having a very tough year. Many restaurants have closed down many locations this year, and Applebee’s is the most recent one on this list.

Applebee’s Unfortunate Streak

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Applebee’s is one of the most popular American restaurant chains in the country. However, the company has been having quite an unfortunate streak since 2023. Only last year, Applebee’s closed 46 locations due to the many challenges the company was facing and its great underperformance. The company has announced its plan to close over 30 locations nationwide in the coming year. 

The Effects of a Dwindling Economy

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Over the past couple of years, inflation and economic instability have been on the rise. Therefore, several franchises, such as restaurants, bars, and even hotels, have been severely affected. Even a big restaurant chain like Applebee’s, which has been around since 1980, isn’t immune. The company that once built over 100 restaurants in three years is now seeing a huge decline in sales and profits all over the country. 

 

Applebee's Announces Multiple Closures in 2024

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The past few years have been difficult for Applebee’s. In 2023, the company’s announcement of the closure of 46 locations did not come as much of a surprise to people. Now, the company has announced the closure of about 35 extra locations across the country due to several concerns and difficulties it faces.

ALSO READ: Popular Fast Food Chain Starts Sharing Free Foods in an Attempt to Win Back Customers

Dine Brands Global

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Dine Brands Global is the parent company of Applebee’s and IHOP. The huge parent company has also experienced some difficulties over the past few years. Its revenue has been on a constant decline, dragging the company’s stock down by 30% in 2024 alone. Furthermore, The Daily Mail reported that the company’s sales across all its restaurants in the first quarter of this year were down to $206 million.

Three Locations Have Closed Already

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Applebee’s president, Tony Moralejo, released a statement, noting that the fast food chain closed three locations this year. In his statement, he revealed the plan to close many more outlets really soon. According to the president, the decision to carry out these closures was very difficult. They had exhausted other options, and it was a last resort for Applebee’s. 

Dine Brands Global’s Plans for IHOP

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While closing 35 restaurants might be a lot, the parent company, Dine Brands Global, has a plan. According to Moralejo, Dine Brands Global intends to open about 25 new IHOP restaurants nationwide this year. As its menu is somewhat different from Applebee’s, the company hopes that the new batches of IHOP might bring in a lot more revenue soon.

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New Strategies

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While many people may think this marks the beginning of the end for Applebee’s, the president has explained that this is not the case. Moralejo has revealed that the company has developed new plans to help facilitate its growth. Therefore, this would lead to the opening of new restaurants, which will continue to expand the brand over the years.

The Hudson Location

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One of the affected locations is in Hudson, about 100 miles north of New York City. The restaurant has been in this location for over 15 years and has become a part of the society there. However, it will officially close its doors in May. The location will definitely be missed by the locals who frequent it and its employees. 

Employees Get Offers At Other Locations

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Most of the workers in the Hudson location have been offered jobs at other Applebee’s locations. The company spokesperson announced this to the employees and told them that the company hopes to see them accept the offers at the neighboring restaurants in Albany and Hudson Valley markets. Therefore, those who still want to work with the company are not totally displaced from their jobs.

ALSO READ: Popular Steakhouse Chain Shuts Down 41 Locations

The Closures Started in 2017

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Most of Applebee’s struggles became quite significant in 2017. That year alone, the company closed more than one hundred different locations. Ever since, the company has continued to close several locations every year across the country. However, they haven’t closed 100 restaurants in a single year since then. Moralejo attributes this closure to locations struggling with trading.

Trading Struggles

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According to the president, the closure of these many locations is not an indication that the franchise is struggling. Instead, it simply means that those areas are struggling to trade. Due to many economic factors, some locations get hit harder than others, thereby reflecting on several businesses around them. Therefore, Moralejo and his team are trying to do what’s best for the franchise. 

President Says Closures Are Natural

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In an interview with TODAY, the president also explained that while Applebee’s is a well-established brand, it is normal for these closures to happen when they lose favor with their surrounding residents.

He noted that Applebee’s is a “mature brand,” and closures will happen as times change. The trade areas also have different ways of growing with changes and expirations in their franchise agreements.

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