As speculation swirls that the owner of Applebee’s and IHOP is considering combining both brands into a single restaurant, a version of that mashup has been quietly operating in Detroit for six years.
Pasadena, Calif.-based Dine Brands owns the iconic chains and chief executive John Peyton recently made headlines when he said the company wants to expand the double restaurant idea from Mexico and elsewhere to the U.S.
“With two brands, we can address all four day parts and that is a big innovation that we are nurturing overseas and that our intent is to eventually bring it to the U.S. when we find the right opportunity to introduce it,” Peyton said in February during an earnings call with Wall Street analysts.
But Peyton didn’t mention that the novel idea already exists in the U.S. – since June 2018 to be exact.
TEAM Schostak Family Restaurants opened the world’s first Applebee’s/IHOP combo restaurant in downtown Detroit at a Marriott Courtyard hotel — and it’s “doing well,” according to vice president, John Andrews, who declined to comment further.
Nicknamed the “IHOPplebee’s” or “Beehop” by the franchisee, the eatery was opened at the request of General Motors, the restaurant’s opening director Jeff Pittel told Eater Detroit at the time.
Because Applebee’s doesn’t typically serve breakfast, TEAM Schostak, asked Dine Brands for permission to combine the brands into one, according to the report.
Customers can expect breakfast-only in the mornings from 6:30 a.m to 11 a.m. with a transition into a combined IHOP-Applebee’s menu during lunch and dinner.
The two-sided menu — one offering IHOP fare and the other Applebee’s items — has been pared down.
Only Applebee’s burgers are offered, for example, according to the report.
“No one’s ever done it before, so people are very curious about it,” Mark Schostak, executive chairman of the company told the Detroit Free Press at the time. “People are watching this to see how this develops and how these two brands come together.”
When asked to comment about the Detroit combo restaurant Dine Brands didn’t respond, except to provide Peyton’s prepared remarks from the February analyst call.
“Dine Brands’ IHOP/Applebee’s dual-branded prototype continues to perform well in our international markets,” Peyton said, adding. “We will continue to monitor the success of this test concept and will consider options for further expansion in the U.S. in select locations if and when it makes sense to do so.”
Peyton also said there are eight such eateries outside the U.S.
“What the Detroit restaurant is doing may not be the model corporate headquarters is looking at,” said Steve Zagor, who teaches food studies at Columbia University’s Business School. “But some of the best ideas usually come from franchisees, including the Big Mac.”
Added restaurant consultant Arlene Spiegel, “It looks like this franchisee brought it to their attention and gave [Dine Brands] a lifeline for two brands that are a little tired.”
Dine Brands sees the combo idea as a way to boost sales for the decades-old eateries that have been struggling lately to attract new customers.
Comparable store sales at the 1,800 IHOP eateries worldwide grew by 1.6% in the fourth quarter while sales at the 1,600 Applebee’s stores dropped by 0.5% over the same period, the company said.
The dual Applebee’s/IHOP eateries outside the U.S. generate “two times or more” the revenues as a standalone restaurant, Peyton said on the earnings call.
The Detroit eatery has gotten mixed reviews so far with most guests directing their negative comments at the hotel.
“This is much more than just a place to rest your head,” wrote one customer on Yelp. “The lobby includes an Applebee’s and an IHOP. These are not the coolest places in the world, but it’s actually fun being able to go down the elevator to get a drink at night, and breakfast the next day.”
“Food is great at the IHOP and Applebee’s and staff were nice there, just expect EXTREMELY slow service,” wrote another on Yelp.
[Notigroup Newsroom in collaboration with other media outlets, with information from the following sources]
