Pancakes and martinis: IHOP, Applebee’s owner combines restaurants

• Dine Brands has opened its first dual-brand concept restaurant in the U.S., combining Applebee’s and IHOP under one roof in Seguin, Texas. The restaurant features exclusive dishes and achieved sales almost three times higher than a standalone IHOP in its opening week.
• The dual-brand concept started internationally, with over 18 locations outside the U.S. and five more on the way. The restaurants maintain the aesthetics of their standalone versions, allowing customers to order from both menus regardless of where they are seated.
• The concept has been well-received, with dual-brand locations achieving up to twice the revenue compared to single-brand counterparts.

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It’s a question families ask every day — what’s for dinner? Unless dining at a mall food court, everyone usually has to decide on one type of food. Now, restaurant operator Dine Brands offers variety when families dine out for their next meal by combining two popular chains under one roof: Applebee’s and IHOP.

Dine Brands opens first US dual-brand concept restaurant

The company, based in Pasadena, California, recently opened its first dual-brand concept restaurant in the U.S. In its earnings call on March 5, CEO John Peyton said more dual-brand spots are coming.  

“In February, we opened our first U.S. dual-brand location in Seguin, Texas. The restaurant is a stunning renovation of an existing IHOP and has exciting dishes on the menu that are exclusive to dual-brands, including buffalo chicken omelets, mimosas, and espresso martinis,” Peyton said. “In its opening week, the restaurant achieved sales of almost three times the amount of its performance as a standalone IHOP.”

He continued, “In fact, demand is multiples higher than our projected 2025 pipeline of 12 to 14 in the U.S. and we’re currently evaluating our development capabilities to see how fast we can execute on this strong pipeline.”

What’s it like inside a dual-brand Applebee’s-IHOP spot?

The restaurant combo idea started with the company’s international team. There are now over 18 dual-brand locations outside the U.S.. Five more are on the way.

“Our work to expand the footprint of dual-brands internationally served a double purpose — driving international growth and while surfacing valuable insights to support the U.S. launch of our dual-brand concept in 2025,”  Peyton said. “And we think that the dual-brand concept presents an exciting, efficient, and cost-effective way to introduce our brands to new markets.”

The restaurants maintain the same aesthetics as their standalone versions. Customers in the IHOP section sit in turquoise and orange booths, while those in the Applebee’s section can relax at the bar. In between, the host stand guides customers to their preferred realm of the Dine Brands multiverse.

Cooks in the single kitchen make items off both trimmed-down menus. Customers can order food from either one, regardless of where they are seated.

“When I was there for a couple of days, I saw at 10:30 in the morning, a four-top, two of whom had omelets, and two of whom had ribs. And the same thing in the afternoon, seeing steaks come out for dinner along with pancakes. So guests are really enjoying the variety there,” Peyton said of his visit to the Texas location.

How’s the reception been to the dual-brand concept?

The CEO said the concept is paying off, not just in the first U.S. dual-brand location, where sales in the second week were stronger than in the first, but also globally.

Peyton said the Applebee’s-IHOP mash-ups have achieved up to two times the revenue compared to the company’s single brand counterparts.

“In terms of the guest reaction, they’re loving the choice and the variety,” Peyton said. “That’s exactly what guests are looking for today. So to be able to choose from both the Applebee’s and IHOP menu all day is really terrific.”

While the dual-branded concept may be new to the casual dining scene, it’s been around for decades in the fast food arena. Companies such as Yum Brands and CKE Restaurants have been uniting multiple chains in one location to provide a variety for customers seeking options.

Dine Brands’ 2024 numbers fell below the company’s expectations. However, the CEO said with innovations such as the dual-brand concepts and a new Applebee’s prototype in development, 2025 looks promising.

The company hopes that Applebee’s and IHOP fans will see these dual-branded spots as just “too” good to pass up.