Applebee’s Sales Drop Nearly 6% as Chain Adapts Strategy with New Value Offerings
Applebee’s, the well-known casual-dining chain, reported a 5.9% decline in same-store sales during the third quarter of 2024. This marks the sixth consecutive quarter of negative sales growth for the brand, which has relied on rotating, limited-time offers such as $1 margaritas and 50-cent chicken wings to draw in guests. Executives from Dine Brands, Applebee’s parent company (which also owns IHOP), acknowledged that this traditional approach no longer resonates with today’s diners, who are increasingly focused on total meal cost rather than item-specific discounts.
John Peyton, CEO of Dine Brands, explained that consumer expectations around value have shifted. “The guest definition and expectation of value shifted over the last couple of quarters,” Peyton stated. “They started to focus on the total cost of the meal. And where Applebee’s and IHOP were focused on primarily promoting an element of the menu, it became clear that guests want to know the total cost of dining in a restaurant.”
To address this, Applebee’s is launching the Real Big Meal Deal, a new bundle featuring an entrée with fries and a fountain drink, priced at $9.99. This value meal option, which includes choices such as the Big Cluckin’ hand-breaded chicken sandwich and the Big Classic Bacon Cheeseburger, aims to provide a more comprehensive value for diners. The Real Big Meal Deal will be available starting next week and will be supported by a full media campaign.
The shift follows a broader trend across the restaurant industry, with other major brands such as McDonald’s and Chili’s introducing value-focused meal packages to attract budget-conscious consumers. Applebee’s Chief Marketing Officer, Joel Yashinsky, emphasized the appeal of the new deal’s simplicity and size, calling it “big in flavor, size, and value.”
Applebee’s also announced plans to roll out a new restaurant prototype in early 2025, which will be 30% less costly to build than current models, potentially aiding future expansion efforts. Additionally, the company is exploring co-branded Applebee’s-IHOP locations, with the first U.S. opening planned near San Antonio in early 2025.
Photo: Applebees Facebook page.
