Applebee's Announces Permanent Closures Across Multiple US States
Applebee's, the well-known fast casual dining chain, is permanently closing select locations across the United States as part of a broader corporate restructuring initiative. The closures impact restaurants in at least three states, including New York, Missouri, and Indiana, with some of these establishments having served their communities for nearly three decades.
Reasons Behind the Restaurant Shutdowns
The decision to close these Applebee's outlets is primarily driven by underperforming sales and escalating operational expenses. Key factors contributing to the shutdowns include rising costs for food supplies, utilities, and labour, which have placed significant financial pressure on the chain's less profitable locations.
Despite these closures, Applebee's parent company, Dine Brands Global, remains committed to expansion in other areas. The corporation has announced ambitious plans to open approximately 80 new dual-branded restaurants that will combine Applebee's with its sister chain, IHOP, by the year 2026.
Current Operations and Industry Context
Applebee's continues to maintain a substantial global presence, operating around 1,500 locations worldwide. This restructuring move reflects a strategic effort to optimise the brand's portfolio amidst challenging economic conditions.
The closures are part of a wider trend in the US restaurant industry, where many chains are grappling with similar issues of increased operational costs and shifting consumer preferences. By focusing on more profitable ventures and innovative formats like dual-branded establishments, Dine Brands Global aims to strengthen Applebee's market position in the competitive dining sector.
