According to the figures, fewer and fewer people are spending their hard-earned money on restaurants. Even fast-food restaurants have suffered losses and have had to raise their prices to stay afloat.
Applebee’s recently held its second quarter earnings call, which included some positive but also a lot of negative information about the company’s position in the restaurant market.
John Peyton, CEO of Dine Brands, which owns Applebee’s, said: “We began the second quarter with a strong strategy to address the economic challenges. However, that momentum slowed in the second quarter, causing the trend to reverse.”
Applebee’s store sales fell 1.8%, and takeout (also known as takeout and delivery) sales were down 21.4%, compared to 22.6% in the second quarter of 2023.
Dine Brands also owns IHOP, and between IHOP and Applebee’s, there were 25 restaurant closures in the second quarter of 2024 alone.
Peyton continued, “There has been a change and slowdown in the last three months that was quite unexpected for us.”
One of Applebee’s plans to emerge from the crisis is to sharpen its focus on takeout and delivery. Peyton said the economics of takeout are favorable for operators because third-party costs are largely passed on to consumers.
Even the Incredible Hulk takes off his shirt from time to time to flex his muscles. Vance Changand, CFO of Dine Brands, took the opportunity to remind people what exactly is hurting Applebee’s.
“The most important factors that influenced our performance are external, such as household income and pricing. There is no single casual dining brand that influences our results.”
Applebee’s has some big promotions lined up for the rest of 2024. The company has a new partnership with the NFL and remains optimistic that it can navigate the “choppy waters” expected for the rest of the year.
Only time will tell whether the decline in sales will continue to moderate, return to normal levels or possibly even increase beyond that.
Evan Paul is the moderator of Taste of Country Nightsa syndicated radio show heard nightly from 7pm-midnight on more than 130 country radio stations nationwide. He plays the best new country music and interviews today’s top stars including Luke Combs, Morgan Wallen, Kenny Chesney, Miranda Lambert, Dan + Shay, Keith Urban, Carrie Underwood, Luke Bryan, Chris Stapleton, Lady A and more!
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