IHOP and Applebee's Joining Forces for Dual-Branded Restaurants

IHOP and Applebee's corporate parent Dine Brands is developing a new dual-branded concept that will merge the two popular chain restaurants into a single location. And the first one is slated to open in Texas in early 2025.

According to Fox Business, the joint IHOP-Applebee's is slated to open its doors in Seguin, TX, a city about 40 minutes northeast of San Antonio which is home to more than 30,000 people. It will open in an existing IHOP restaurant run by a local franchisee that will be renovated to incorporate the Applebee's brand. The company is planning to expand the concept to 15 sites in the United States by taking "existing IHOPs that are adding an Applebee’s."

The first location in Seguin will reportedly feature a shared kitchen and a combined menu, with a dining area will offer both IHOP and Applebee’s sections side-by-side.

Dine Brands CEO John Peyton said in a statement that the dual restaurant design "allows IHOP to shine in the morning and Applebee’s to thrive in afternoons and evenings." He continued: "The menu leverages each brand’s unique offerings to maximize dayparts and provide more choices, variety, and value to guests."

However, while this will be the first U.S. location, the joint concept has been in the works for awhile now. The company has been testing international locations in 13 non-U.S. markets including Mexico, Canada, the UAE, Kuwait, Saudi Arabia, Peru, and Honduras.

Peyton told analysts and investors this week that the other dual-branded restaurants "have performed well" and have brought in up to two times the revenue of a single-branded restaurant. "We’re pleased with the growth of the dual brands concept internationally and we’re excited about the potential of this opportunity domestically," he added.