Applebee's owner Dine Brands to lean on value, marketing to reverse sales declines - CNBC | Analysis by Brian Moineau
**Turning the Tables: Can Dine Brands Cook Up a Comeback for Applebee's and IHOP?**
In the ever-evolving world of casual dining, Dine Brands, the parent company of Applebee's and IHOP, finds itself at a crossroads. As reported by CNBC, the company is strategizing to reverse a concerning trend: a fourth consecutive quarter of declining domestic same-store sales for both popular chains. With 2025 as their target, Dine Brands aims to stir up growth through a potent mix of value offerings and savvy marketing. But can they truly flip the script on this narrative?
**1. A Recipe for Success: Value and Marketing**
Dine Brands is banking on an old adage: the customer is always right. In a landscape where consumers are increasingly price-sensitive and value-driven, the company plans to reinvigorate its menu with attractive deals. This isn't just about slashing prices; it's about creating compelling value propositions that resonate with diners who are increasingly spoiled for choice.
Marketing, too, is set to play a crucial role. With the rise of social media and digital advertising, traditional marketing won't cut it. Applebee's and IHOP will need to harness the power of storytelling, perhaps taking a leaf out of Wendy's book with their witty Twitter presence, or Burger King's cheeky campaigns that engage consumers on a personal level.
**2. Lessons from the Past**
The restaurant industry has seen its fair share of ups and downs, but those who adapt tend to thrive. Think of Domino's Pizza. A decade ago, they were struggling with poor sales and a lackluster product. However, by embracing transparency, revamping their menu, and launching a bold marketing campaign, they managed to turn their fortunes around. Dine Brands might find inspiration in Domino's journey, focusing on authenticity and customer feedback to guide their transformation.
**3. The Broader Picture: Dining in a Post-Pandemic World**
It's impossible to discuss the challenges facing Applebee's and IHOP without acknowledging the seismic shifts caused by the COVID-19 pandemic. The dining experience has fundamentally changed, with consumers now accustomed to takeout, delivery, and curbside pickup. This trend isn't going anywhere, and Dine Brands will need to innovate in this space to stay competitive. Embracing technology—perhaps through apps that offer personalized deals or seamless ordering experiences—could be a game-changer.
**4. Other Players in the Game**
It's not just Applebee's and IHOP feeling the heat. Many in the casual dining sector are grappling with similar challenges. Competitors like Chili's and Olive Garden are also navigating this new normal, each vying for the same pool of value-conscious customers. The battle for market share will be fierce, and only those who can pivot swiftly and effectively will emerge victorious.
**Final Thoughts**
Dine Brands is on a mission to bring diners back to Applebee's and IHOP tables. In a world where the only constant is change, the company's focus on value and marketing could indeed be the right ingredients to cook up a comeback. Yet, success won't come overnight. It will require patience, creativity, and an unwavering commitment to understanding and meeting customer needs.
As we watch this story unfold, it’s worth remembering that the restaurant industry, much like any other, thrives on resilience and innovation. If Dine Brands can embrace these qualities, they might just pull off a delicious turnaround. But for now, only time will tell if their efforts will be enough to whet the appetite of today's discerning diners.
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