Applebee’s Forced to Close 35 More Locations Across US in 2024

The popular American restaurant chain Applebee’s has announced plans to close over 30 locations across the states in the coming year. 

Applebee’s has been a popular restaurant chain for several decades. It started as a small location in 1980. In 1986, Abe Gustin and John Hamra franchised it, and just three years later, 100 restaurants were spread across the states.

Due to underperformance, Applebee’s has announced they plan to close around 35 locations across the U.S. this year, which showcases how difficult the past few years have been for the grill chain.

Dine Brands Global, the parent company of Applebee’s and IHOP, has experienced a significant revenue decline in recent years. The company’s stock is down 30% this year alone.

According to a statement from Applebee’s president, Tony Moralejo, the restaurant has already closed three locations this year and plans to close many more.

During a fourth-quarter earnings call several months ago, Moralejo revealed, “We’re expecting 25 to 35 net fewer domestic Applebee’s restaurants.”

Speaking on future prospects for Applebee’s and Dine Brands Global, Moralejo explains that the company has new plans in place to continue its growth.

Unfortunately, one location in Hudson, over 100 miles north of New York City, will be included in the recent string of closures. The Applebee’s here will officially close its doors for good in mid-May.

Many of the workers from the Judson location have been offered employment at another Applebee’s.

Applebee’s struggles appear to have peaked in 2017, a year in which the franchise closed over 100 restaurants.

“I’ll add that these closures aren’t a sign of struggling franchisees. They’re offering a sign of struggling trade areas,” Moralejo said.

Speaking with TODAY, Moralejo explained that Applebee’s is a well-established franchise, and it is only natural that specific locations will eventually lose favor with the surrounding residents.

Applebee’s has a rich history, evolving from a single location in 1980 to a nationwide chain. Over the years, it has navigated various challenges and market shifts.

The closure of 35 more Applebee’s locations will undoubtedly impact local economies.

Consumer dining preferences have shifted dramatically in recent years. The rise of fast-casual dining, the convenience of food delivery services, and the demand for healthier, locally-sourced options have left traditional sit-down chains like Applebee’s struggling to keep up.

Digital transformation is crucial in the modern restaurant industry. While some chains have successfully integrated online ordering, mobile apps, and digital marketing, others lag behind.

The competitive landscape for casual dining chains is intense. While Applebee’s faces closures, other chains like Olive Garden are implementing innovative strategies to stay afloat.

Rising operational costs are a major factor in Applebee’s closures. Increasing food prices, labor costs, and real estate expenses have strained the chain’s profitability.

Applebee’s isn’t alone in its struggles. Red Lobster recently filed for bankruptcy, highlighting the broader challenges in the casual dining sector. Economic pressures and shifting consumer preferences have taken a toll.

California’s beloved Foster’s Freeze announced its closure, citing economic hardships and changing market dynamics. Known for its classic American fare, the closure marks the end of an era for many loyal customers.

Burger King has faced layoffs due to the introduction of self-service kiosks. This shift towards automation aims to reduce costs and enhance customer service efficiency.

Taco Bell has implemented price increases in response to rising ingredient and operational costs. While the chain remains popular, these changes have sparked discussions about affordability and value.

Brocato’s Sandwich Shop, a local favorite, recently declared bankruptcy. The small business struggled to cope with economic pressures and competition from larger chains.

The future of casual dining is uncertain. Industry experts predict a continued shift towards fast-casual and delivery-focused models. For traditional chains like Applebee’s, innovation and adaptation are crucial.