Applebee’s and IHOP to Debut First U.S. Dual-Brand Restaurant in Texas, Adding a Dozen More in 2025
Fans of both breakfast stacks and dinner specials will soon find a one-stop destination in a suburb of San Antonio, Texas, as IHOP and Applebee’s plan to open their first co-branded restaurant in the U.S. The new concept, set to open in early 2025, will be housed in a shared building where customers can order from both menus and enjoy meals in separate dining rooms. This model, which already operates in 13 international locations, has shown significant success in countries like Canada, according to Dine Brands, the parent company of both chains.
New Model Designed to Capture Guests Morning to Night
The Texas location, approximately 40 minutes from San Antonio, will replace an existing IHOP and is managed by franchisee R. Hakim Group. While IHOP will remain prominent for breakfast and lunch, Applebee’s will add evening and late-night options to the same address. The idea behind the dual-brand concept is to cover the full span of dining hours, attracting steady traffic throughout the day and capitalizing on both brands’ unique customer bases.
“We’re excited to improve dining options in Seguin, Texas by bringing together two iconic brands,” said Danny Hakim, Vice President of R. Hakim Corp, an IHOP franchisee in a statement. “From IHOP’s world-famous pancakes and breakfast offerings to Applebee’s classic American fare and dinner items, guests can enjoy the best of both brands any time of day within one great restaurant experience.”
The dual-brand restaurant is replacing an IHOP at 2777 N. Highway 123 Bypass in Seguin, TX, which is slated to close on Nov. 10th for remodeling. All team members have been offered positions at nearby locations during the closure.
Photo: Courtesy of Dine Brands.
Dine Brands CEO John Peyton noted that the setup has proven to generate 1.5 to 2 times the revenue of a standalone location without increasing the building’s footprint, an advantage the parent company believes can drive growth.
The model also leverages operational efficiencies. Applebee’s and IHOP will share a kitchen, as well as host areas and restrooms, while allowing customers to enjoy each brand’s distinct dining experience in separate rooms. By uniting two well-known menus, franchisees could see improved unit economics and the ability to spread fixed costs, which has historically been a challenge in the restaurant industry.
The Potential of Co-Branding for U.S. Growth
Dine Brands has seen promising results in international markets and aims to expand the dual-brand model across the U.S., with plans to add a dozen more locations in 2025. Though no openings are planned on Long Island yet, the combined-concept format may appeal to the region’s dining landscape. With customers increasingly seeking convenient dining options that offer a variety of meals, the model could fit well in Long Island’s diverse restaurant scene.
The co-branded location is part of a broader strategy by Dine Brands to reignite growth amid recent sales challenges. In the third quarter of this year, Applebee’s and IHOP both reported declines in same-store sales, 5.9% and 2.1%, respectively, reflecting shifts in consumer dining habits. The dual-brand approach could help counterbalance these trends, especially in areas where franchisees might lack sufficient space to open a second standalone location.
Trend of Joint Branding in the Restaurant Industry
The dual-brand concept has made a recent comeback in the restaurant world, with other major companies such as GoTo Foods and Inspire Brands testing similar joint ventures. However, for Dine Brands, this model represents an innovative way to adapt to changing consumer needs while maximizing franchisees’ resources.
“We’re eager to kick off development and bring the first dual-branded restaurant to the U.S. in Seguin, Texas,” said John Peyton, Chief Executive Officer of Dine Brands in a statement. “With two brands under one roof, it allows IHOP to shine in the morning and Applebee’s to thrive in afternoons and evenings. The menu leverages each brand’s unique offerings to maximize dayparts and provide more choices, variety, and value to guests.”
While it remains to be seen if the concept will eventually come to Long Island, Dine Brands’ early success with its international dual-brand locations could hint at a fresh approach to dining, appealing to consumers looking for variety, convenience, and value in a single destination.
