Applebee’s closes multiple locations amid cost pressures

Rising costs and a changing market claim a local favorite, even as the national brand bets on new menus and dual-concept stores

Applebee’s exits Evansville | ©Image Credit: Wikimedia Commons
©Image Credit: Wikimedia Commons

In a quiet corner of southwestern Indiana, where Friday night dinners once meant waiting for a booth and the hum of familiar chatter, a longtime neighborhood staple has gone dark. For folks in Evansville who’ve relied on that reliable glow from the parking lot, whether grabbing ribs after a game or just a quick drink with friends, the change hit like the end of an era nobody saw coming.

Last week, both Applebee’s Evansville locations shut down. Crews took down the exterior signage. Inside the window, there was a printed note.

“Thank you for being our neighbor for the last 30 years.” That’s all it said.

The Morgan Avenue restaurant opened in 1995. Back then, a stretch of national chains moved into the area with big parking lots, fresh asphalt, and new menus. Houses had once stood on that lot before the restaurant went up.

Pearl Drive followed in 2001, just ahead of another wave of chain restaurants on the west side.

Now, if you want Applebee’s, you’re driving out of town. Henderson, Kentucky. Princeton, Indiana.

There haven’t been reports on how many employees were affected.

A Pattern Playing Out Elsewhere

The closures come as Applebee’s parent company, Dine Brands Global, points to higher food prices and rising utilities and fuel costs as the strain on franchisees. Casual dining has had a rough few years. Some locations get remodeled. Others get replaced. In McHenry, Illinois, an Applebee’s that closed in May 2025 was quickly turned into a Yummy Bowl Mongolian Stir-Fry and Sushi.

These changes aren’t isolated to Evansville. Similar moves have played out recently in other spots: a longtime location near I-70 Drive SW in Columbia, Missouri, shut down on February 18 after more than 30 years, and another at 268 Saratoga Road in Glenville, New York, is set to close on April 12, with the franchisee citing the same economic pressures and offering transfers to nearby sites.

All of this aligns with guidance Dine Brands released February 25 in its Q4 2025 earnings report: they expect a net decline of 5 to 15 domestic Applebee’s locations in 2026 overall. Meaning closures will slightly outpace openings as they trim underperforming sites while focusing on higher-return investments like remodels and new concepts.

This is not to say the brand is disappearing. Applebee’s recently introduced a new O-M-Cheese burger served in a skillet with queso and melted cheese, added to its 2-for-$25 promotion. The company is also expanding dual-branded Applebee’s and IHOP restaurants, with plans to reach 80 combined locations by the end of next year.

In Baldwin, New York, one location just held a ribbon-cutting after renovations. New booths. New lighting. Murals reflecting the neighborhood.

In Evansville, there won’t be a reopening. Just two empty buildings where people used to wait for a table on Friday nights.

Sources: Dine Brands, Evansville Courier & Press, ABC17 News, The Sun