A large Applebee’s franchisee in Pennsylvania is adding to its portfolio.
Newtown, Pennsylvania-based The Rose Group last week announced that it acquired six Applebee’s restaurants in and around Harrisburg, Pennsylvania, bringing its total to 55 Applebee’s in four states.
The seller was Keystone Apple. Financial terms were not disclosed.
The Rose Group is a well-known Applebee’s operator. In its 30 years in business, it has been named Franchise of the Year by the franchisor seven times, including this year and last year.
In a press release, it said the deal would help it expand its operation into a strong neighboring market.
“The Harrisburg market is vibrant and full of opportunity,” said Jason Rose, VP of real estate development for The Rose Group, in a statement. “We are excited to welcome this group of managers, restaurant team members and guests into our Rose Group family and extend our eastern Pennsylvania footprint.”
It is a show of confidence in a brand that has been struggling of late. In the third quarter, same-store sales across Applebee’s 1,620 restaurants fell 5.9%, and a pair of franchisees recently filed for bankruptcy. The chain is promoting a new $9.99 Really Big Deal Meal and a new chicken sandwich to help bring customers back to its restaurants.
There is optimism within the system that it can do that. Greg Flynn, CEO of the Flynn Group, Applebee’s largest franchisee, said at the Restaurant Finance and Development Conference this month that he would continue to invest in Applebee’s and casual dining.
“There will always be a large market for sit-down dining with liquor,” he said. “Applebee’s is in as good a position as anyone.”
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