Over 100 Applebee's, 20 IHOP Locations May Close
By West Kentucky Star Staff
GLENDALE, CA - The company that owns two restaurant chains has indicated they may close as many as 160 locations by the end of 2017.

On Thursday, DineEquity said struggling finances led them to expect between 105 and 135 Applebee's locations would close, along with 20-25 IHOP locations. The expected closures will be based on several criteria, including franchisee profitability, operational results and meeting our brand quality standards. 

Corporate figures show that over the first 6 months of the 2017 fiscal year, Applebee's sales were down 7 percent, and IHOP's sales were down 2.1 percent.

"We are investing in the empowerment of our brands by improving overall franchisee financial health, closing underperforming restaurants and enhancing the supply chain," interim CEO Richard Dahl said in a statement. "We believe 2017 will be a transitional year for Applebee's, and we are making the necessary investments for overall long-term brand health and expect to see improvement over the next year."  

A recent report by CBS shows Millennials are eating more at home - either by buying groceries and cooking, or by using meal kit companies. Either way, they are spending less at national restaurant chains. 

Meal kit company Blue Apron began selling company shares to the public this summer, and Amazon purchased Whole Foods as it pursues more expansion into food delivery, possibly aiming to use e-commerce to take on Blue Apron directly.

Cooper Smith, head of Amazon research at the analytics and research firm L2, told CBS, "When Amazon launches this type of service eventually, that's who they'll be catering to: young people and busy people who want convenience, healthy options, and they want choices."

On the Net:

DineEquity, Inc. Reports Second Quarter Fiscal 2017 Results
Source Article by CBS

Published 04:39 AM, Saturday Aug. 12, 2017
Updated 12:57 AM, Saturday Aug. 12, 2017

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