Applebee’s & IHOP Are Launching the First-Ever Dual-Branded Location in the US. Here Are the Details

Applebee’s and IHOP are launching their first-ever dual-branded location in the United States. The dual-branded concept was a pretty big hit in Mexico, and now, the concept is finally coming to the States. Here are the details.

Applebee’s & IHOP Co-Branded Launch

According to Food on Demand, Applebee’s and IHOP will establish the country’s first dual-branded restaurant, fusing the two ideas under one roof. In the first quarter of 2025, it is scheduled to open in the San Antonio suburb of Seguin, Texas. The parent company of the two brands, Dine Brands, is working with one of its franchisees, R. Hakim Group, to establish the location.

The site will take the place of an existing IHOP restaurant that will be closing in November for renovations.

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Using dayparts is one of the motivations behind this dual-brand strategy. With Applebee’s concentrating on lunch and evening and IHOP serving breakfast, both restaurants stand to gain more customers. Additionally, IHOP and Applebee’s have different peak hours. Applebee’s is recognized for lunch, supper, and late-night dining, whereas IHOP is known for its breakfast and brunch customers.

Additionally, since Applebee’s and IHOP have been making more investments in their off-premises operations, it will have a drive-thru window.

The goal is to have 15 locations authorized for dual-branded expansion in the United States. The two brands have already successfully tested the concept in foreign countries, such as Saudi Arabia and Kuwait, although the Seguin location is the first in the United States.

“It’s really a B-to-B product in the sense that it’s got complimentary dayparts, a shared kitchen, a common menu, cross-trained staff,” said John Peyton, CEO of Dine Brands, on the most recent company earnings call. “These could help starve off closure for some challenged restaurants…because the addition of a second brand may improve unit economics.”

Should More Retailers Follow Suit?

The idea of a dual-branded restaurant in the United States was first floated back in March. This new concept has already been implemented in other countries. At the time, Peyton disclosed that eight “prototypes” of the model had been piloted worldwide. The newest Applebee’s-IHOP facility in Leon, Mexico, which opened for business in January 2024, is one example.

Peyton underlined how important Mexico is as one of their main overseas markets. During an earnings call in March, he discussed the possibility of expanding to specific locations in the United States and expressed optimism about the growth possibilities offered by the dual-branded venue in Leon. He also reaffirmed the company’s commitment to assessing the effectiveness of this experimental concept.

But it isn’t the first dual-brand concept. Rather, dual-branding has grown popular in the hospitality sector, and hotels were among the first to do it. A special kind of hotel that has two different hotels under one roof is a dual-branded hotel. The days of limiting each property to a single brand are long gone. Rather, this creative strategy enables hotel operators to serve a variety of populations at once.

Dual-branded hotels have their origins in the early 2000s when boutique hotels became popular. These businesses show how profitable it is to serve specialized markets. Hoteliers started looking into ways to reach several markets within a single resort since they were keen to duplicate this achievement. This setup’s potential for cost savings is what makes it so attractive. These hotels increase efficiency and streamline operations by pooling resources and overheads.

In the context of American eating, the potential of dual-brand establishments like Applebee’s and IHOP’s team-up offers an intriguing story. The future of these recognizable businesses is in the hands of Dine Brands, which will have to see how the first location does in the new year.