Things aren't looking so good for some of our favorite fast-casual chain restaurants. DineEquity, the parent company of Applebee's and IHOP, has announced they will close up to 160 locations of both restaurants this year.
The company plans to shutter around 105 to 130 Applebee's sites and 20 to 25 IHOP locations, USA Today reports. This announcement follows the company's ongoing initiative to eliminate underperforming locations and focus more on competing with quick-service restaurants, such as Panera and Chipotle. In 2016, DineEquity closed 46 Applebee's locations, according to Business Insider.
"Closing these well-below average restaurants can have a positive brand benefit since guests are no longer experiencing a substandard experience," Amy Mason, DineEquity's senior vice president for global communications and consumer insights, told USA Today.
Even with these upcoming closings, DineEquity says the two chains also plan to open 125 restaurants globally in new locations, including the world's first Applebee's and IHOP combo restaurant in Detroit. The plan is to open around 20 to 30 new Applebee's, mostly abroad, and 80 to 95 IHOPs, mostly in the U.S.
"Over the past few years, the brand's set out to reposition or reinvent Applebee's as a modern bar and grill in overt pursuit of a more youthful and affluent demographic with a more independent or even sophisticated dining mindset, including a clear pendulum swing towards millennials," John Cywinski, Applebee's brand president told Business Insider.
There is no word yet on which Applebee's and IHOP locations will be closing.
(h/t USA Today)
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