Applebee’s locations are disintegrating opposite a US.
On Thursday, executives announced that a sequence skeleton to tighten between 105 and 135 locations this year.
“We are prolonged overdue in rationalizing a distance of a complement and shutting feeble behaving restaurants,” Dine Equity CEO Richard Dahl pronounced in a call with investors.
In March, Applebee’s said that it designed to tighten 40 to 60 locations in 2017. In 2016, Applebee’s sealed 46 locations.
Dine Equity, that also owns IHOP, reported that a net income in a second quarter was $20.9 million, down from $26.4 million in a same entertain final year. Applebee’s same-store sales decreased 7% in a quarter.
Executives blamed problems in partial on Applebee’s try to win over millennial diners.
“Over a past few years, a brand’s set out to reposition or reinvent Applebee’s as a complicated bar and griddle in sincere office of a some-more childish and abounding demographic with a some-more eccentric or even worldly dining mindset, including a transparent pendulum pitch towards millennials,” John Cywinski, Applebee’s code president, pronounced Thursday.
“In my perspective, this office led to decisions that combined difficulty among core guests, as Applebee’s intentionally drifted from a what I’ll call a Middle America roots and a abounding value position,” he continued. “While we positively wish to extend a reach, we can’t divide Boomers or Gen-Xers in a process.”
In 2016, Applebee’s launched what it called a “comprehensive business transformation” in an try to update a chain. Changes such as installing fire grills in all 2,000-plus locations opposite a US — a $40 million investment by a chain’s franchisees — and redesigning locations were ostensible to heed Applebee’s from other infrequent dining chains.
Moving foward, Cywinski pronounced that Applebee’s will concentration on “routine traditionalists” who indeed suffer infrequent dining bondage and have favorite menu items, as good as “value seekers” who are looking for deals during sit-down restaurants.
Restaurants slated for closure are possibly in areas with disappearing traffic, such as restaurants nearby once bustling though now passed malls, or locations with low sales that offer customers a “substandard experience,” according to executives.
Applebee’s isn’t a usually infrequent dining sequence struggling to win over customers. Brands such as TGI Fridays and Ruby Tuesday have faced sales slumps and dozens of grill closures in new months.