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.

In 2015, the Huffington Post reported that Applebee’s would be rebranding what they called a ‘millennial bar’ and added trendy gastropub bites like brisket nachos, sweet potato fries, platters to share, and new cocktails.

What made matters worse was Applebee’s desperation to draw the new generation of restaurant-goers into their locations, which ended up isolating core customers.

Failing to get millennials in the door and forgetting about their core customer base what the blow that may have spelled the end of the Neighborhood Bar & Grill.

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

Dining is changing. While Applebee’s used to be everyone’s favorite Neighborhood Bar & Grill, people are now looking for more health-conscious restaurants.

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.

Another nail in the coffin for Applebee’s is the real dining habit that has changed. Applebee’s isn’t the only casual dining restaurant to suffer from this new habit that has emerged as dominant in the post-COVID-19 years.

Fast casual restaurants like Chipotle and Five Guys are dominating traditional casual dining as they offer delivery, competitive prices, and–in all honesty–the ability to not have to talk to someone.

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.

Applebee’s was also late to integrate technology into its business practices. As more and more people eat at non-traditional meal times, mobile ordering and WiFi have become almost necessary for any business to operate in 2024.

Back in 2014, Today reported that Applebee’s applied for a trademark on “No Tech Tuesday,” which seemed to suggest that they were considering implementing a policy of asking customers to put away their phones on Tuesdays.

While Wi-Fi is a necessity in today’s world, Applebee’s seems slow to catch on about how important it is to customers. Applebee’s finally installed public Wi-Fi in all its locations in 2018. This change enabled the restaurant to operate during customers’ working hours.

It wouldn’t shock you to discover that Applebee’s has a fairly nonexistent online presence. This can all be traced back to a defining moment in 2013 when an Applebee’s waitress posted a picture of a receipt with no tip and a caption reading: “I give God 10%, why do you get 18?”

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.

How was your last meal at Applebee’s? As someone who hasn’t eaten there since 2017 and primarily only ate the appetizers as a meal, I can say that the food quality at Applebee’s wasn’t my first choice in a town that only had four sit-down restaurants.

Consumer Affairs reports that Applebee’s reviews collectively give it a 1.5-star rating out of five. That is enough to turn people away from entering the front door of their local Applebee’s.

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.