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Dining brand Hopefully this year will boost sales with a wider range of value meals and buzzing advertising, after 2024 for Applebee and Ihop.
“We’ve had a year in 2024 and that disappoints us, but we’re focused on improving in 2025,” Dine Brands CEO John Peyton told CNBC. “We have to have fascinating information, compelling promotions and compelling reasons to get traffic to restaurants.”
Meal on Wednesday Report Same-store sales in the fourth quarter fell 4.7% and IHOP’s 2.8% declined, the year ended with its two flagship brands falling for four consecutive domestic stores. Dine’s stock has fallen 50% over the past 12 months, reducing its market cap to $386 million.
The company’s decline year was three years of strong growth, which was strong growth in the wake of the pandemic when it returned to IHOP and Applebee’s return to IHOP and Applebee. But like many restaurant companies, Dine’s pullback last year came from customers with less than $75,000. After paying higher prices for groceries, rents, gasoline and other essentials a few years later, consumers choose to stay at home to cook or visit other chains that offer better deals or flashy promotions.
Slower restaurant spending leads to a series of casual restaurant chains File for bankruptcy In the past 12 months. Familiar names like Red Lobster and TGI seek bankruptcy protection Friday to reorganize struggling businesses and uninstall their worst-performing restaurants. Recently, on the border of filing for Chapter 11 bankruptcy on Tuesday.
Applebee promotions Failed to eliminate a lot of noise from it The so-called value war The chain of stores ignited throughout the restaurant industry McDonald’s arrive Blooming’Brand’ Outback steakhouse. Even the recent pop culture moments last year have failed to increase its popularity: a key cameo in the tennis TV series Challenger, a melting motivation for the “survivor” and the yelling of football legend Peyton Manning during Netflix’s baking at Netflix on his former rival Tom Brady.
“Most of your restaurant companies are advertising value and are advertising full-scale transactions, so when there are a lot of similar messages out there, it’s hard to browse through one message,” said Dine’s Peyton.
But it is not impossible to stand out from the backpack. Chili,Depend on Border Internationalwins diners with a combination of virus triple Big Dipper and $10.99 burger A few months to turn around Its business.
In the most recent quarter, Brinker reported a 27.4% increase in same-store sales. Thanks to its dramatic comeback, the company has become a rare casual to-do for investors. Over the past year, Brink’s stock has almost tripled its value during the same period and increased its market capitalization to $6.29 billion.
Currently, Applebee’s value promotion stars, priced at $25 for both items, usually accounting for one-fifth of chain tickets, Payton said. But Applebee is looking to add its value products later this spring or early summer to attract customers who are large groups or who don’t want to order with their dining partners.
Dine is also trying to improve the reach of its social media.
“At IHOP and Applebee’s, we both know we need to do better there. We know we need to be more relevant. We know we have to be part of the conversation and culture,” Payton said.
Applebee’s new president can help achieve this.
Payton is currently serving as interim president of the chain after Tony Moralejo resigned on Tuesday. Payton said the company is looking for an alternative that “has an excellent marketing background” and they understand how to connect with younger customers, besides learning about the great leaders of franchise and some restaurant experiences. ((Yum Brand Lawrence Kim joined Dine as president of IHOP in early January, replacing Jay Johns.
Looking ahead to 2025, Dine tries to communicate better with its customers and uses its menu innovation to attract young diners.
But Dine’s confidence in its ability to attract customers seems to be shaky. 2025 The company expects Applebee’s same-store sales to fall between 2% and 1% growth, while IHOP’s same-store sales to fall between 1% and 2% growth.
