IHOP Closing 100 Restaurants Over the Next Six Months
Have you ever gone out, picked up breakfast, and brought it home to eat? I have. It never seems to meet expectations. And that's one of the reasons why the parent company of IHOP and Applebee's is saying they're going to close about 100 IHOP restaurants over the next few months.
Business Insider reports that Dine Brands, IHOP's parent company, has reported that sales were down 23.5% in the third quarter at the pancake house. This is an improvement over a 40% decline in sales during the second quarter.
Restaurant Business Online nicely outlines the problems family restaurants like IHOP are experiencing right now:
Family-dining restaurants in particular have struggled during the pandemic. The breakfast daypart has struggled and has been less able to adapt to the takeout and delivery that have dominated during the pandemic. In addition, the late-night business has suffered as bars are closed and other events have been canceled.
While breakfast to go from restaurants like IHOP haven't translated as well as other restaurant's to go business, the chain is seeing some improvement in that category with to go orders doubling since the pandemic began.
Dine brands is characterizing the closures as part of their normal business operations where restaurants shut for a variety of reasons. Under-performance and loss of lease being two of many reasons.
When chains that have a presence in small communities like Warrensburg announce closures there's always a concern our store or restaurant might be one of the one's targeted for closure. Yet, to some extent, with limited options, and no other locations easily accessible for consumers. I'd bet the closures may come in areas where it's easy to find another location. So I wouldn't worry about not being able to get your Rooty Tooty Fresh and Fruity Pancake in Warresnburg. At least not yet.
As of this writing Dine Brands has not disclosed what IHOP locations will be closing.
H/T - Boris and Stephen Lenz