Applebee’s will close another 35 locations this year, after closing 46 in 2023.
The restaurant chain has closed at least three locations so far this year and plans to close even more, President Tony Moralejo said on an earnings conference call Wednesday.
Closing restaurants was “an incredibly difficult decision” and a “last resort” for the company, Moralejo said.
The American barbecue chain, famous for its $10 burgers and ‘dollaritas’, closed 46 of its more than 1,500 locations due to ‘poor performance’ last year.
The franchise, which competes with companies like Waffle House and Denny’s, has been closing hundreds of restaurants since 2017.
Applebee’s to close up to 35 more locations this year, after closing 46 in 2023
Hudson, 120 miles north of New York City, is one of those places affected by the most recent round of closures.
Hudson neighborhood Applebee’s will close its doors on May 19.
Workers affected by the closure have been offered other jobs within the franchise, WTEN reported.
“We greatly appreciate the patronage of our neighbors over the past 15 years and have loved being a part of this neighborhood,” said a spokesperson for the local franchise.
“We look forward to seeing you in our neighboring restaurants in the Albany and Hudson Valley markets,” they added.
“Consumer caution regarding economic conditions persisted after the holiday period and, as a result, the consumer has become more price sensitive,” John Peyton, CEO of parent company Dine Brands, said during the Wednesday earnings conference call.
Hudson, New York, is one of those places affected by the most recent round of closures.
Dine Brands Global, which also owns IHOP, will begin building combined Applebee/IHOP restaurants in 2025.
However, parent company Dine Brands Global, which also owns IHOP, will begin building combined Applebee’s/IHOP restaurants in 2025.
Shares of California-based Dine Brands are down 30 percent so far this year and are trading at $43 per share on Thursday.
The company also reported a decline in revenue, missing Wall Street expectations in the first quarter.
Dine’s sales at all of its restaurants, including Applebee’s and IHOP, fell to $206 million in the first three months of this year.
This drop was due to sales falling 4.6 percent at Applebee’s and 1.7 percent at IHOP.
Other restaurant chains like Cheesecake Factory have also faced a drop in customers, who are fed up with rising prices.
Prices at America’s largest fast-food chains have also skyrocketed above the rate of inflation over the past five years.
But the numbers suggest that consumers are already tired of the increases and are voting with their wallets.
Visitors to fast food chains decreased 3.5 percent in the first three months of the year compared to 2023, according to data from Revenue Management Solutions.
It means big chains like McDonald’s, Wendy’s, Popeyes, Pizza Hut and Chipotle have likely sold millions fewer burgers, pizzas and burritos.
Applebee’s store closures so far in 2024:
Antioch, California: Closed on February 25
Waco, Texas: Closed April 29.
Hudson, New York: Closed on May 19