On Thursday, officials for restaurants such as Applebee’s and IHOP have announced that there will be closings. Close to 160 locations are up for closure through the rest of the current fiscal year. At the same, dozens of new restaurants are to be opening soon as well.
According to DineEquity Inc., 105 to 135 Applebee’s restaurants could close. Before the revision of expectation for the remainder of the fiscal year, only 40 to 60 locations were to be shut down. What will determine the status of sites will be operation results, profits, and standards.
While many will be closing their doors for good, at least 30 Applebee’s restaurants will be opening world wide. DineEquity said in their statement that they hope only to have to close 75 locations.
Currently, there are 1,752 IHOP restaurants and 1,968 Applebee’s locations throughout the globe.
When it comes to IHOP, the company says they could lose 20 to 25 stores. The company does expect to open plenty more restaurants, though. 80-95, to be exact. Most of the locations will be within the United States. They do plan to expand more restaurants globally. With the new locations opening, that ups the chain’s net openings to 75.
As of now, the company has been mute when it comes to which locations are closing. They have said that they have not chosen which locations will get the axe yet.
The president of Applebee’s, John Cywinski, said during the conference that company will be making a lot of moves in months to come. He states that most of their locations will be in two separate categories. The categories will be sites that are older, with less traffic, and the other will be sites with bad performance quality.
Stephen Joyce, from Choice Hotels International Inc., is the new CEO of DineEquity. He will be replacing Julia Stewart, who made the IHOP/Applebee’s merger possible. She resigned from the position back in March.