Craving pancakes for dinner or a juicy steak for breakfast? Texans, get ready to have your indecision solved! In a first-of-its-kind move for the United States, IHOP and Applebee’s are joining forces to create a combo restaurant in the Lone Star State. Here’s what you need to know about this innovative concept that offers diners the best of both worlds under one roof.
Where Will the First Dual-Branded IHOP-Applebee’s Open in the U.S.?
Dine Brands, the parent company of IHOP and Applebee’s, is set to open America’s first dual-branded IHOP-Applebee’s restaurant in Seguin, Texas. The new restaurant will replace the existing IHOP at 2777 N. Highway 123 Bypass, which will temporarily close on November 10th to undergo remodeling. Situated approximately 40 minutes from San Antonio, the dual-branded location is expected to open its doors to the public in the first quarter of 2025.
Hakim Corp., a longtime IHOP franchisee, will oversee the operation of the new restaurant. “We’re excited to improve dining options in Seguin, Texas, by bringing together two iconic brands,” said R. Hakim Corp. vice president Danny Hakim in a statement. “From IHOP’s world-famous pancakes and breakfast offerings to Applebee’s classic American fare and dinner items, guests can enjoy the best of both brands any time of day within one great restaurant experience.”
Why Combining IHOP and Applebee’s Under One Roof Makes Perfect Sense
Dine Brands is capitalizing on the success of its dual-branded restaurant model in international markets by expanding it to the U.S.
“We’re eager to kick off development and bring the first dual-branded restaurant to the U.S. in Seguin, Texas. With two brands under one roof, it allows IHOP to shine in the morning and Applebee’s to thrive in afternoons and evenings. The menu leverages each brand’s unique offerings to maximize dayparts and provide more choices, variety, and value to guests.” Dine Brands chief executive officer John Peyton said in a statement.
After highlighting the success of the dual-branded IHOP and Applebee’s locations in international markets in February, Peyton confirmed by June that Dine Brands was bringing the concept to the U.S., initially testing the model to tailor it for American guests.
With international locations performing strongly, confidence in the model’s success stateside is high. Peyton noted the efficiency of the shared kitchen and the way the two brands complement each other’s hours of operation, boosting revenue potential. In fact, dual-branded locations overseas have been shown to generate twice as much revenue as standalone IHOP or Applebee’s locations with the same square footage.
“You’re getting two for the size and space of one. They have a shared kitchen and a red side and a blue side for Applebee’s and IHOP, and a purple in the middle, so when you walk into the restaurant, you’re greeted by a host who then seats you on either side depending on which restaurant you prefer,” he said. But no matter where you are seated inside the restaurant, you can order from both menus at any time of the day.
“The real beauty of it is for the franchisee that owns that restaurant. This activates four dayparts throughout the day,” Peyton explained. “And so, what we are demonstrating oversees is you’re adding IHOP a.m. to Applebee’s p.m. and you’re getting 2x or more of revenue in the same box.”
The dual-branded IHOP and Applebee’s concept is currently operational in countries like Canada, Mexico, and the United Arab Emirates.