- I attended the opening of the first Applebee's and IHOP dual-branded restaurant in Seguin, Texas.
- It's the first restaurant of its kind in the United States, though the concept has worked abroad.
- Dine Brands CEO John Peyton said the restaurant will hopefully attract younger customers.
Chain restaurants are betting big on value and choice to attract younger customers amid declining sales across the casual dining industry.
The latest example is the opening of the first dual-branded Applebee's and IHOP restaurant in the US.
The first-of-its-kind restaurant, which opened on February 18, is located off the side of a major highway in Seguin, Texas, about halfway between San Antonio and Austin.
It's rare for chain restaurants to try something completely new.
New menu items often come and go as mere trends, and with many chains focusing on nostalgia instead of rebranding, they're sticking with what has already proven successful rather than taking a risk on a new restaurant concept.
Chili's popular Triple Dipper, for example, went viral last year and accounted for 14% of the chain's total sales in the second quarter, but it has actually been a menu staple for years — although it recently got a refresh with spicier flavors for its chicken tenders and extra-cheesy fried mozzarella.
But from the moment I walked into the newly designed Applebee's-IHOP restaurant, I could tell this experience would be completely different from any visit I'd had at either chain before.
The new restaurant concept is poised to appeal to a younger audience, a priority for Dine Brands, the parent company of Applebee's and IHOP.
CEO John Peyton told Business Insider that Gen Z's tastes were a key consideration before introducing the Applebee's-IHOP hybrid in the US.
"They love spicy, they love to share, they love to sample, they like to have choice. And so all of those things are important inspirations for how we think about designing our menus and new ideas," Peyton told BI ahead of the restaurant's grand opening.
"Guests never had the opportunity to have two people at dinner have an omelet and two people have a Bourbon steak, or mix and match," he continued. "That new level of choices you can make here is exactly what we think our younger guests are looking for."
Here's what it was like to eat at the hybrid Applebee's-IHOP restaurant.
The first Applebee's and IHOP dual-branded restaurant opened in Seguin, Texas, in February.
This is the first Applebee's-IHOP restaurant concept in the US, with both brands operating in the same space, dining room, and kitchen.
There are 13 dual-branded restaurant locations across Canada, Mexico, Honduras, and the Middle East.
Peyton told Business Insider the restaurant concept improves customers' experience.
"For our guests, it enables a lot more choice," he said. "We already see overseas, they're ordering from both sides of the menu. The other thing it does for our guests is we've created items on this menu that are only available at the dual-branded restaurants."
The company said it plans to open 14 more dual-branded locations in the US in the next year, both by updating existing single-branded IHOP and Applebee's locations and building completely new locations that reflect the new Applebee's-IHOP brand.
Inside, there were homages to both brands throughout the dining room.
Peyton said this location was previously just an IHOP, but it has been renovated to suit both brands.
In addition to a large dining room with booth and table seating, there's also a bar area with screens for sports games like you'd find in an Applebee's.
A large greenery-covered wall in the back showed off both brands' logos.
The design of the restaurant was clean and modern, something I personally have rarely experienced at chains like Applebee's or TGI Fridays, which tend to have a moodier, more classic bar-and-grill feel with dim overhead lighting and deeper colors like red throughout.
Dine Brands partnered with the Ramzi Hakim Group, led by vice president Danny Hakim, as the franchisee for the first Applebee's-IHOP restaurant.
"These are the new looks for both IHOP and Applebee's," Danny Hakim told BI. "We are very excited to release these looks across the board."
Nation's Restaurant News reported that the Hakim group has been operating IHOP franchises in the San Antonio area since 1991.
Over the years, the group has expanded to 37 IHOP locations and recently added nine Applebee's restaurants to its portfolio. The group plans to open five more dual-branded restaurants this year.
"They're great innovators and they know that this is a test-and-learn restaurant," Peyton told BI. "This is No. 1 in the US, and we're both aligned in the fact that the next one we build might not look and feel exactly like this one. We're going to learn together and make changes together."
There's just one menu, which includes favorite dishes from both chains as well as items exclusive to the dual-branded restaurant.
The menu includes popular dishes from both Applebee's and IHOP menus, plus five dishes available only at the hybrid restaurant.
Breakfast is served all day and night, and the restaurant itself operates from 5 a.m. until 1 a.m. every day, so restaurants that convert from a single-brand concept gain more hours in the morning and at night to serve customers.
"IHOP owns the morning, and Applebee's owns dinner," Peyton said. "It was an IHOP franchisee who was busy in the morning and quiet at night. This activates the restaurant all day long. Their economics are so much better."
For many chains, that fight for value-conscious customers is an uphill battle.
Applebee's year-over-year same-restaurant sales declined 5.9% in the third quarter of 2024 compared to the same quarter the year before, while IHOP's declined 2.1%.
Peyton said that the word value "is thrown around a lot," but could be key to winning over customers and boosting revenue.
"It's important that we don't lose sight of the fact that value's got a very specific definition for us, which is great food, a really generous portion, and great service at an accessible price," he said, adding that "we have to focus on those four things to yield to our guests more than ever in 2025."
I started my meal with a mimosa.
One of the biggest draws of this new restaurant concept is a full bar menu, which includes brunch cocktails like mimosas, a bloody mary, and espresso martinis, plus all the classic cocktails and brews you'd expect to find at an Applebee's.
The Good Morning Mimosa, made with IHOP orange juice and Barefoot Bubbly Brut Cuvée, cost $8.99.
It was light and fresh, and the perfect start to the morning.
I also tried the chain's Ultimate Breakfast Burger, which is exclusive to this restaurant concept.
Applebee's is known for its burgers, while IHOP does breakfast. Therefore, it made sense for both chains to combine for an elevated breakfast burger.
The burger, which cost $13.99, reminded me of a classic New York deli favorite: a bacon, egg, and cheese with a hash brown sandwiched into it.
The burger was moist and cooked perfectly medium-rare, while the hash browns added a salty, savory flavor.
I thought the egg added even more moisture to this sandwich, as did the bright and tangy poblano hollandaise sauce. The bacon was crispy and added a deep smoky flavor, balanced by a soft, fluffy bun. I would definitely order this again.
It was a standard breakfast sandwich kicked up a notch — paired with seasoned fries, this burger set me up for the day.
The concept of exclusive menu items that can only be ordered at dual-branded Applebee's-IHOP restaurants could easily appeal to Gen Z customers, who love limited-time offers and menu hacks.
I finished my meal on a sweet — and affordable — note.
The strawberry waffle sundae, which includes two Belgian waffle pieces, glazed strawberries, vanilla ice cream, and whipped cream, cost $2.99.
The sundae had the ideal amount of sweetness.
The waffles' crispy texture was balanced by the sweet and flavorful vanilla ice cream, and the strawberries added a tart bite to the dish.
I couldn't help but be impressed by the meal and the overall restaurant concept.
While the first restaurant may be located in a small Texas city, I could see this concept working well in larger metropolitan areas with a younger, more brunch-obsessed crowd.
Brunch, which can sometimes be seen as an upscale meal, needs to be accessible when people are tightening their budgets. As a member of Gen Z myself, I was sold on the concept.
I was impressed by the restaurant's affordable pricing and extensive menu selection. With options ranging from burgers and eggs Benedict to omelets and steak dinners, there was something to satisfy any craving.
I look forward to seeing the chain expand with new locations in the coming year.
