Applebee’s Enters ‘Burger Wars’ Amid Sales Slump

Applebee’s has entered the so-called “Burger Wars” against the likes of McDonald’s amidst reports that its sales are on the downturn.

Restaurant Business reports that the casual dining chain experienced a 4.6% decline in sales in Q1 2024. Executives blamed January’s severe weather and a decrease in spending amongst lower-income consumers — who are their target audience — due to inflation for the sales slump.

To boost sales, Applebee’s has started enticing its consumers with various price-friendly promotions, including $1 margaritas, all-you-can-eat appetizers, and 50-cent wings.

The casual dining chain also recently announced a new, cheaper burger option. The “Whole Lotta Bacon Burger” will feature a signature burger full of bacon and a side order of fries for $9.99 plus applicable sales tax.

“The Whole Lotta Burger for $9.99 — if you can have our burger for $10, which is great quality, abundant and eat in our restaurant, in our experience, why would you eat a $10 burger out of a paper bag in your car?” John Peyton, the CEO of Applebee’s parent company Dine Brands, told CNBC.

Like Applebee’s, McDonald’s has been experiencing a bit of a sales slump as consumers grow wary of rising costs due to inflation, and the chain has started offering a better burger option in an effort to lure customers back to its stores.

Since the beginning of Q1, McDonald’s has been changing the items on its menu, guaranteeing its famous burgers will taste better as customers’ palates get pickier. But the massive fast-food chain is now raising the stakes.

In an effort to “further build on our leadership in beef,” McDonald’s CFO Ian Borden has spearheaded the effort to develop a “larger satiating burger.”

Nonetheless, Borden has acknowledged that not all places have received the formal rollout of the more recent, greater offering. Instead, he stated that the business would “be testing this burger in a few markets later this year, ensuring that it has universal appeal before scaling it across the globe,” according to Fox Business.

Borden also revealed last week that 80% of the chain’s restaurants had already started serving the updated “Best Burgers.” Additionally, he declared that “almost all locations” will have the upgraded burgers available by the end of 2026.