Applebee’s will close from 105 to 135 restaurants, about 60 can be closed in the first quarter. At the same time, Applebee’s and IHOP together plan to open 125 new institutions around the world, reported in DineEquity.
Applebee’s and IHOP have a big problem, as more customers prefer fast food restaurants such as Panera Bread or Chipotle Mexican Grill, many of which offer healthier food. Analysts say that Applebee’s has fallen on hard times.
Applebee’s «was in the doghouse from daily visitors,» said Instinet analyst mark Kalinowski in a report published on Friday.
But in DineEquity believe that the closure of restaurants may now be profitable for the long term.
«We invest in the development of our brands, closing marginally profitable restaurants, and improved the delivery mechanism,» – said in his statement, interim CEO Richard Gave. The company refused to publish a list of eateries that will be closed.
«Closing restaurants is the normal course in such a big business, as we have, said Amy Mason, senior Vice President, global communications and consumer values. – We close the old or of the institution or unprofitable».
