In a bold move, two hallmark names in the casual dining industry, IHOP and Applebee’s, are set to unite under one roof. The objective with this unique co-branded model is to tap into the loyal customer bases of both these restaurants and offer patrons an all-in-one dining experience.
Dine Brands, the parent company, disclosed the plan of integrating the American diner-style pancake house IHOP, and neighborhood grill and bar, Applebee’s, at select locations. The strategy is to ensure the profitability of these chains by offering a consolidated dining expedience to their customers.
The underlying idea of this innovative concept is to combine the distinctiveness of both the brands: the homely and familiar appeal of IHOP and the enjoyable, casual atmosphere of Applebee’s. The co-branded dine-in sites would offer the best of both worlds to the customers – they can start their day with a hearty breakfast from IHOP, and later enjoy lunch, dinner, or late-night meals at Applebee’s without leaving the same spot.
The co-branded model will be installed in a diverse range of locations, such as airports, travel plazas, casino cafes, and other non-traditional places. This partnership is designed in such a way that both brands can reach a larger, diverse audience and offer a total day-part dining solution. The unique pairing is expected to leverage their brand strengths, meet consumers’ changing habits, and take advantage of IHOP’s breakfast dominance and Applebee’s lunch, dinner, and late-night leadership.
The strategic layout of a typical co-branded location intends to make the most efficient use of space. Customers will be directed to the shared seating area after ordering food from respective counters of IHOP and Applebee’s. The establishments also aim to offer a combined service line, and common waiting area. This operational blueprint not only delivers effortless and streamlined dining experience for the customers but also positively impacts the cost-efficiency of the project.
The pandemic has urged businesses to rethink their models and strategies, and this co-branding maneuver can offer the comfort of two favorite brands in one place. By merging under one roof, Applebee’s and IHOP could minimize their operational costs, which in turn would augment their margins.
Meanwhile, on the menu side, there is an expected synergistic blend of IHOP’s and Applebee’s offerings. IHOP, a breakfast giant known for its diverse selection of pancakes, omelettes, French toast and more, is estimated to shoulder the breakfast service as it does currently. Post-breakfast, the baton would comfortably pass to Applebee’s eclectic menu showcasing an assortment of appetizers, classic grill items, sandwiches, salads, and delectable desserts that make them a popular choice for families and groups. Customers in co-branded areas can relish this seamless transition between breakfast to dinner and also enjoy late-night dining.
In summary, the alliance of IHOP and Applebee’s in the form of co-branded locations is an innovative strategy to overcome challenges and meet changing consumer demands while delivering a comprehensive dining experience. The concept embodies the essence of unity and adaptability, reflecting an era where businesses merge strengths for greater consumer satisfaction and business profitability.