Everybody loves a great fast-food combo meal, however what a couple of combo restaurant? How about IHOP pancakes with an Applebee’s steak and fries?
Dual-concept or twin restaurants are a method to introduce a number of menu gadgets and ideas with much less monetary danger (assume Taco Bell and KFC, Auntie Anne’s and Cinnabon, Jimmy John’s and Dunkin’). Now, the first IHOP-Applebee’s combo restaurant within the U.S. might be opening exterior San Antonio early subsequent 12 months.
What is going to it appear to be? Renderings present IHOP on one facet, and Applebee’s (that includes a big bar with TVs) on the opposite, in keeping with CNN. They’ll share an entrance, front-of-the-house employees, and a kitchen. Clients seated in both facet can order off each menus.
The twin-branded restaurant comes as each IHOP and Applebee’s battle with weakening gross sales, a pattern amongst casual-dining eating places and fast-food chains throughout the nation. Dine Manufacturers (NYSE: DIN), which owns each chains, introduced disappointing third-quarter outcomes on Wednesday, with Applebee’s same-store gross sales falling almost 6%, and IHOP’s falling 2.1%. That’s as Individuals are spending much less to eat out amid inflation, rising costs, and altering consuming habits.
“Through the third quarter, we continued to expertise shopper pullback and the pressures of a extremely promotional working surroundings,” mentioned John Peyton, chief govt officer of Dine Manufacturers World, in an organization statement.
Internationally, there are already 13 IHOP-Applebee’s combo restaurants.
Kohl’s and Infants “R” Us did it too
Informal-dining and fast-food franchises aren’t the one ones attempting to fight poor gross sales with dual-branded shops. Retailers are too.
Division retailer chain Kohl’s, which has skilled latest monetary challenges, teamed up with Babies “R” Us to roll out baby-focused merchandise in about 200 shops. The retail large can be providing Infants “R” Us merchandise on-line by way of Kohls.com.
Infants “R” Us went out of enterprise in 2018 together with dad or mum firm Toys “R” Us, amid a wave of closures within the baby-goods retail sector over the previous seven years following the bankruptcies of buybuyBaby and Gymboree. However the model staged a comeback final 12 months.