Applebee’s will close another 35 locations this year, after 46 in 2023.
The restaurant chain has closed at least three locations so far this year and has plans to close more, President Tony Moralejo said in an earnings call Wednesday.
Closing restaurants was “an incredibly difficult decision” and a “last resort” for the company, Moralejo said.
The American grill chain, famous for its $10 burgers and ‘dollaritas’, closed 46 of its more than 1,500 locations last year due to ‘underperformance’.
The franchise – which competes with the likes of Waffle House and Denny’s – has closed hundreds of restaurants since 2017.
Applebee’s will close another 35 locations this year, after closing 46 in 2023
Hudson, 120 miles north of New York City, is one such location affected by the latest round of closures.
Hudson’s neighborhood Applebee’s will close its doors on May 19.
Employees affected by the closure have been offered other jobs within the franchise. WTEN reported.
“We greatly appreciate the support of our neighbors over the past fifteen years and are thrilled to be part of this neighborhood,” said a spokesperson for the local franchise.
“We hope to see you at our neighboring restaurants in the Albany and Hudson Valley markets,” they added.
“Consumer caution about economic conditions continued after the holiday season and, as a result, consumers have become more price sensitive,” John Peyton, CEO of parent company Dine Brands, said during Wednesday’s earnings call.
Hudson, New York is one such location affected by the latest round of closures
Dine Brands Global, which also owns IHOP, will begin building combined Applebee/IHOP restaurants in 2025
However, parent company Dine Brands Global, which also owns IHOP, will begin building combined Applebee’s/IHOP restaurants in 2025.
California-based Dine Brands stock is down 30 percent year to date, trading at $43 per share on Thursday.
The company also reported a decline in revenue, missing Wall Street expectations in the first quarter.
Dine’s sales at all of its restaurants — including Applebee’s and IHOP — fell to $206 million in the first three months of this year.
This decline was due to a 4.6 percent decline in sales at Applebee’s and 1.7 percent at IHOP.
Other restaurant chains such as Cheesecake Factory have also experienced a decline in customers – who are fed up with rising prices.
Prices at America’s largest fast-food chains have also risen above the rate of inflation over the past five years.
But figures suggest consumers are fed up with the increases and are voting with their wallets.
The number of visitors to fast food chains fell by 3.5 percent in the first three months of the year compared to 2023, according to data from Revenue Management Solutions.
It means that major chains like McDonald’s, Wendy’s, Popeyes, Pizza Hut and Chipotle have likely sold millions fewer hamburgers, pizzas and burritos.
Applebee’s store closures so far in 2024:
Antioch, California: Closed February 25
Waco, TX: Closed on April 29
Hudson, New York: Closed on May 19
