Dine Brands, the parent company of Applebee’s and IHOP, believes that its promotional offers can attract customers dissatisfied with fast-food prices. With consumers tightening their spending on dining out, both Applebee’s and IHOP are facing intensified competition from various sectors, including fast-food chains and home dining options. CEO John Peyton emphasizes that their target market encompasses not only full-service restaurants but also fast-food outlets and home-cooked meals.
To stand out, Applebee’s has been focusing on value-driven promotions, such as the return of Dollaritas. Peyton is confident that their offerings, like the Whole Lotta Burger priced at $9.99, provide quality and abundance that fast-food options can’t match. Despite lower-income consumers being more cautious with their spending, they still make up a significant portion of Dine Brands’ customer base.
Although Dine Brands reported first-quarter earnings below expectations, it maintains its full-year outlook and notes sequential sales improvement. However, analysts remain cautious, suggesting that significant same-store sales growth is needed to meet projections.
Applebee’s isn’t alone in targeting the fast-food market; Chili’s recently launched an ad campaign challenging fast-food burger prices. McDonald’s, feeling the pressure, is considering a nationwide value menu in response to competitors’ value messages.
In addition to promotional deals, Applebee’s has gained attention through various pop-culture moments, including appearances in films like “Challengers,” a memorable meltdown on “Survivor,” and a mention by football legend Peyton Manning during a Netflix roast. This exposure has helped Applebee’s stay relevant and resonate with consumers.
