Applebee’s, IHOP plan to close up to 160 restaurants

Image courtesy of AP

(WCMH) – The parent company of Applebee’s and IHOP says it expects to close 160 restaurants by the end of the fiscal year.

DineEquity Inc. announced the closures in its second quarter fiscal 2017 results.

There has been no word yet about whether the 10 Applebees in the Richmond area will be impacted.

The company says it will close between 105 and 135 Applebee’s restaurants. The company said in May it would close between 40 and 60 locations.

Applebee’s expects to open between 20 and 30 new restaurants in 2017, the majority of which will be outside the US.

The company says the closures will be based on several criteria, including franchisee profitability, operational results and meeting brand quality standards.

Applebee’s same-restaurant sales declined 6.2% in the second quarter of 2017. The company expects that number to be between six percent and eight percent for the fiscal year.

“We believe 2017 will be a transitional year for Applebee’s and we are making the necessary investments for overall long-term brand health and expect to see improvement over the next year,” said Richard J. Dahl, Chairman and interim Chief Executive Officer of DineEquity, Inc.

Between 20 and 25 IHOP restaurants are also expected to close, with between 80 and 95 new locations opening.

This is a developing story. Stay with 8News online and on air for the latest updates.

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