Sometimes you have to tear something down to build something better.
That has always been true in the restaurant business. Chains regularly remodel locations, but in some cases, a full rebuild is the only way to fix traffic flow, kitchen limitations, or changing customer behavior.
The McDonald’s on the Berlin Turnpike in Newington, Conn., where we lived for more than a decade, but have visited for 30 years, underwent at least one remodel and a full rebuild during that period. When it was rebuilt, it added multiple drive-through lanes, something it could not have done with a simple remodel.
Something similar is happening with Applebee’s. The Dine Brands restaurant chain has been closing locations across the country, but it plans to open something bigger and better to replace those closed restaurants.
- Restaurant remodels increase revenue. A survey cited by TouchBistro’s 2025 State of Restaurants Report found that 41% of restaurant operators reported a sales increase after remodeling.
- U.S. industry experts recommend a restaurant renovation every five to 10 years, according to Restaurant Times.
- Statistics indicate a potential 40% boost in sales from strategic remodeling, according to OysterLink data.
Industry analysts note that the biggest sales gains come from full rebuilds or major footprint changes, not cosmetic refreshes.
Dine Brands expands its dual restaurant concept
While Dine Brands has closed select Applebee’s locations and plans to close more, it’s growing the brand through its dual restaurant concept.
“The model — which combines Dine’s two flagship brands under one roof and features menu items from both served by employees who are cross-trained — grew to 18 locations across seven markets by the end of 2024. Those markets include Mexico, Canada, the United Arab Emirates, Kuwait, Saudi Arabia, Honduras, and Peru,” Nation’s Restaurant News (NRN) reported.
In the coming years, that’s a concept the company will lean into.
“As we discussed last quarter, dual brands represent a meaningful long-term opportunity for net unit growth. In 2025, we established the foundation, proving out the model, refining the operating playbook, and building confidence with our franchisees. The results further reinforce our conviction on the importance of dual brands,” Dine Brands Global CEO John Peyton said during the company’s fourth-quarter earnings call.
IHOP/Applebee’s dual brand quick facts:
- Dine Brands has opened 32 dual-brand restaurants in the U.S., including three company-owned locations.
- An additional nine dual-brand locations are under construction.
- These restaurants continue to outperform single-brand locations, delivering approximately 1.5 to 2.5 times higher revenue.
“We continue to see evidence that the dual brand concept is highly complementary with balanced performance by both brands across all four dayparts. At the same time, we are identifying opportunities to streamline operations, including reducing table turn times and refining kitchen layouts that improve throughput and efficiency,” he added.
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Franchisee interest remains strong, and the pipeline is expanding as operators see the benefits of the model, Peyton explained.
“Based on our current pipeline, we expect to achieve at least an incremental 50 dual-brand openings in 2026, bringing us close to 80 domestic dual-brand restaurants by the end of this year,” he said.
Dual-brand Applebee’s/IHOP locations generate significantly higher revenue on average than single-brand restaurants, NRN reported.
Dine Brands
Applebee’s has been closing restaurants
In some cases, Applebee’s has closed locations to open a dual-brand location serving the same market. Dine Global has also made decisions to shut down underperforming restaurants in markets they won’t open in again.
- Applebee’s has closed multiple locations across the U.S., including restaurants in Indiana, Missouri, and New York, as franchisees shut underperforming units amid higher costs, according to People magazine.
- Two long-running Applebee’s locations in Evansville, Indiana, closed after nearly 30 years, highlighting pressure on older casual-dining restaurants, added People.
Dine Brands Global has signaled a net decline in Applebee’s locations, with more closures than openings, even as the chain maintains about 1,500 restaurants worldwide, according to Dine Global’s fourth-quarter earnings release.
Dine Brands has big plans for IHOP/Applebee’s dual locations
Dine Brands’ analysis indicates the potential to open approximately 900 dual-branded restaurants in the U.S. throughout the next decade, according to NRN.
“Of the 900 white space opportunities identified by Dine Brands, he [Peyton] said half of the potential dual-brand restaurants will likely be new builds, where there is not an existing IHOP or Applebee’s in the market. The other half will likely be existing restaurants that are able to add a second brand,” NRN reported.
Dine Brands’ recent results have shown growth potential in the space, according to Black Box Intelligence Chief Insights Officer Victor Fernandez.
“One of the things that those big cash flow dining brands proved is that there’s definitely room for casual dining in the industry. I think it’s more than proof that [casual dining] can be a very thriving segment,” he told Restaurant Dive.
Peyton shared more plans on how Dine Global plans to grow.
“As we move into 2026, our focus with dual brands is on disciplined expansion, scaling thoughtfully, applying what we have learned, and ensuring we can deliver consistent results as the concept grows. Dual brands are not the right solution for every market, but where they make sense, they are powerful incremental unit growth and profit drivers for us as well as the franchisees,” he said.
