Operations at Applebee’s: Strategies for Better Franchise Development and Menu Innovation
Explore how Applebee’s is tackling challenges in franchise development and menu innovation to improve operations and drive growth
Addressing Construction Costs and Menu Innovation
When Moralejo assumed his role at Applebee’s, the brand's focus on lowering construction expenses and reinvigorating menu offerings set the stage for future strategic decisions. By streamlining construction costs, Applebee’s aimed to create a more favorable environment for franchise development. Additionally, intensifying menu innovation was crucial to attracting and retaining customers in the competitive casual dining sector.
Exploring Dual-Branded Units and Sales Growth Challenges
Applebee’s recent contemplation of dual-branded IHOP-Applebee’s locations demonstrates the brand's willingness to explore innovative operational models. While initiatives like the Dollarita promotion have generated buzz, the chain has been grappling with declining same-store sales, as evidenced by a significant drop of 5.9% in Q3 2024. This decline underscores the importance of continuous adaptation to meet evolving consumer preferences and market dynamics.
Developing an Integrated Value Platform for Brand Relevance
Moralejo’s strategic vision for Applebee’s emphasizes the creation of an integrated value platform to enhance the brand's relevance among diners. This platform aims to not only replicate the success of promotions like the Dollarita but also to establish a deeper connection with guests. By focusing on building brand saliency and relevance, Applebee’s seeks to differentiate itself in the casual dining landscape and strengthen customer loyalty.
The Importance of Operational Excellence and Franchise Relationships
Peyton's acknowledgment of Moralejo's leadership highlights the significance of operational excellence and fostering strong relationships with franchisees. Navigating economic challenges and leading a dedicated team are pivotal aspects of maintaining a competitive edge in the restaurant industry. By prioritizing operational efficiency and collaboration with franchise partners, Applebee’s can overcome obstacles and drive sustainable growth.
