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DineEquity in expansion spree

Firm plans to increase Applebee’s and IHOP restaurants to over 600 by 2020

Dubai: DineEquity, the American company that franchises the popular Applebee’s and IHOP restaurants, has revealed plans to expand the Applebee’s brand in the region with several new restaurant openings.

Julia Stewart, chairman and CEO of DineEquity, said: “The DineEquity brands have been in the UAE since 2009, with the opening of the first Applebee’s in Abu Dhabi in Mazyad Mall. Our IHOP brand came to the UAE in November, 2012. As an indicator of the warm reception both brands have received in the UAE, as of December, 2014, we now have seven Applebee’s locations and three IHOP locations in the Middle East.”

Daniel del Olmo, president of international at DineEquity, added: “We are increasing our expansion plans with our franchise partner Jananah Investment to add 10 new additional Applebee’s locations, in addition to the one already scheduled to open in Abu Dhabi in the next few months, so that by 2019, we will have a total of 18 Applebee’s locations.”

In an interview with Khaleej Times, both officials revealed that the growth and expansion is a result of a new initiative instituted at DineEquity in December 2013.

“When IHOP purchased the Applebee’s brand in 2007, we formed DineEquity. Our model was to create a series of shared services that would combine the services common to both brands, which will allow us to leverage the strength of having two number one brands; and serve our franchise partners with even more efficiency and greater bench strength than if we were hiring two different positions,” Stewart explained.

“To reach our goal of growing from over 200 restaurants to more than 600 restaurants across both brands by 2020 — as we refer to it, our 2020 vision — we have identified three areas of the world that we feel have the greatest potential for growth and success. One is Latin America, the second is Asia Pacific, and the third area for growth is the Middle East, including the UAE. We see great promise here throughout the region,” del Olmo revealed.

Asked what made the two brands popular in the region, Stewart replied: “Unlike many American brands, both our brands have a long legacy of pleasing guests with our hospitality and menu offerings, and a history that gives us an authenticity in both our categories.

IHOP is now over 56 years old — we have been part of people’s lives and building a reputation for more than half a century. And Applebee’s is about to celebrate 35 years of being everyone’s favorite neighborhood grill. With those decades of expertise, there’s more than just a familiarity in countries around the world, there’s a trust and a connection that are really unique.”

Speaking on innovation, and driving growth in the next few years, del Olmo noted: “We have been given not only permission, but a mandate to innovate to make our restaurants a success throughout the world. And that is a tremendous gift, to have that freedom to take the best of our brands and find new ways to present them.” 

“We are currently engaged not only in a 360 degree brand renovation that will affect every touch point of our brands with our guests, but are actively involved in creating two new formats that will have smaller footprints and allow our franchise partners to open restaurants in smaller spaces than the traditional model, which will open opportunities for locations in airports, malls and many new arenas.

“We are also engaged in a project to create new variations on our restaurants that are geared to the desires and expectations of the new generation of guests, and one of our two test locations on this project will be here in the Middle East,” he added.

rohma@khaleejtimes.com