Applebee’s and IHOP gained nine dual-brand sites as their footprint shrank

Applebee’s and IHOP shared 90 restaurants worldwide on September 27, up from 81 on June 28. Together they had 3,275 distinct locations, down 14 from 3,289.

Four franchised Applebee’s added IHOP, three domestic and one international. Five new franchised restaurants opened with both brands, two domestic and three international. Dine Brands Global counts shared sites twice in its combined brand total, which fell from 3,370 in June to 3,365 in September.

What counts as an opening#

Franchisees sign an agreement for each brand. In the June quarter, six domestic Applebee’s added IHOP, three company-run and three franchised. Two franchised IHOPs added Applebee’s. One new franchise opened with both brands. Nine sites produced 10 brand openings. Second-quarter filing.

A change of owner can also produce an opening in Dine’s tables. When Dine bought 48 franchised Applebee’s in June, it recorded closures on the franchise side and openings on the company side. It then recorded the restaurants’ sales as its own. Dine attributed a $36.9 million year-over-year increase in third-quarter company-restaurant revenue to restaurants it had acquired or opened since the year-earlier quarter. Dine’s November 4 earnings release.

When a lease comes up for renewal#

Dine CEO John Peyton said renewal talks typically start a year or two before a lease or franchise agreement expires. Dine and the franchisee consider moving first, then renovating or adding a brand if they stay. To protect an IHOP’s sales, for example, Dine would reject a conversion at an Applebee’s two miles away, Peyton said on September 15.

Peyton estimated a conversion costs about $1 million, a little less for an Applebee’s adding IHOP. The reverse conversion costs more because the operator has to build and equip a bar. Dine helped pay for the first U.S. conversion, he said.

The first U.S. dual-brand Applebee’s and IHOP opened in Seguin, Texas, on February 18, 2025. Its franchisee, Ramzi Hakim Group, already owned restaurants of both brands. Dine described one host stand and two dining areas. A guest on the Applebee’s side can order pancakes, and someone on the IHOP side can order wings. Both orders go to the same kitchen. Seguin opening announcement.

When The Hakim Group opened the San Antonio area’s eighth dual-brand restaurant in September 2026, Dine listed daily hours of 6 a.m. to 1 a.m. Customers at the West Loop 1604 South restaurant could order from either brand throughout those 19 hours. San Antonio opening announcement.

For an Applebee’s adding breakfast, morning sales would first have to cover the extra food and labor. What’s left could help pay for the conversion. At a new address, the operator needs enough business across the full day to pay for the entire restaurant, including its rent, equipment and staff.

Peyton described cross-trained crews. Dine coached IHOP operators on running a bar. Applebee’s crews faced weekend breakfast rushes with diners ordering eggs cooked to their specifications. Mixed orders prompted Dine to reconsider the griddle’s position relative to the fryer. Peyton on kitchen operations.