Dine Brands plans to open a lot more co-branded Applebee’s-IHOP locations this year.
The company said Thursday that it will open 23 of the dual-branded restaurants internationally. It also plans to open 12 to 14 of them in the U.S. this year. Together, that would bring the number of mashup locations worldwide to 56, nearly tripling the current footprint of 19.
The openings will be a combination of new builds and conversions of existing locations. And they will bring Applebee’s and IHOP to some new markets, like Costa Rica.
Dine has high hopes for the co-branded concept, which brings Applebee’s and IHOP together under one roof. Dining areas are divided by brand, but customers can order from both menus.
The company has said the combination generates revenues of 1.5 to 2 times higher than a stand-alone Applebee’s or IHOP because it covers four dayparts.
The concept was created by Dine’s international development team and there are now Applebee’s-IHOPs in seven overseas markets: Mexico, Canada, UAE, Kuwait, Saudi Arabia, Honduras, and Peru.
Costa Rica, Bahrain, Egypt and Oman will join the list this year. And Dine is also seeking master franchisees in Europe, Spain and Asia, specifically South Korea and Japan.
The first domestic dual-branded restaurant opened last month in a former IHOP in Seguin, Texas.
The concept is a key part of Dine’s plans to return to net new unit growth. Last year, it opened 65 new restaurants across the two brands, but closed 83.
Dine operates or franchises more than 3,500 restaurants in 19 countries. But the vast majority of its locations are in the U.S. At the end of last year, it had 130 international IHOPs and 113 Applebee’s.
Dine also owns Fuzzy’s, a 117-unit fast-casual taco chain.
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