Zion-Benton Times - Community News - Your Life

Applebee's In Zion Closes

 

Applebees Clossing

Without an official announcement, the Applebee's location at 21st and Sheridan Road abruptly closed in early June, joining the more than 50 Applebee's to close in the last year in the US.

"We are long overdue in rationalizing the size of our system and closing poorly performing restaurants," Dine Equity CEO Richard Dahl said in a call with investors in late 2017. In March of 2017, Applebee's said that it planned to close 40 to 60 locations in 2017. In 2016, Applebee's closed 46 locations.

There is a sign outside the building indicating that an online public auction will be held Tuesday, June 26, 2018. All contents of the store are scheduled to be sold. Interested bidders must pre-register at http://www.biddergy.com and or call 866 – 260-1611.

Dine Equity, which also owns IHOP, reported that its net income in the second quarter of 2017 was $20.9 million, down from $26.4 million in the same quarter last year. Applebee's same-store sales decreased 7% in that quarter.

Management attribute loss revenue to a failed marketing strategy to reach millennials. Classical sit-down chain restaurants have been experiencing decline over the years. IHOP is changing it's name and business strategy. It will be branded IHOB with a focus on the burger business rather than pancakes.

Applebee's isn't the only casual dining chain struggling to win over customers. Brands such as TGI Fridays and Ruby Tuesday have faced sales slumps and dozens of restaurant closures have occurred in the last few years and in recent months.

Here are some examples: Joe's Crab Shack closed 40 stores, Noodles & Company - 55, Outback - 43, Bob Evans - 27, Subway - 359, Ruby Tuesday - 95, and Applebee's - 135 restaurants. Howard Johnson closed its final hotel and restaurant in January for good.

-Elroy Reed

 

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