IHOP Applebee's

First co-branded Applebee’s/IHOP restaurant to debut in 2017

Combination unit will be located in Detroit

DineEquity Inc. plans to open its first co-branded Applebee’s/IHOP restaurant in Detroit by late 2017, the company said Wednesday. 

Glendale, Calif.-based DineEquity said franchisee Team Schostak Family Restaurants (TSFR) aims to begin construction on the 11,939-square foot, 300-seat combination unit in April, pending city approvals. 

TSFR, based in Livonia, Mich., has one Applebee’s unit in Detroit. The co-branded location will be its first IHOP restaurant. TSFR operates 67 Applebee’s unit in Michigan, as well as 25 Olga’s Kitchen restaurants and franchised Del Taco and MOD Pizza units.

"We are grateful to our franchisee Mark Schostak and everyone at TSFR for leading this new concept,” said Julia Stewart, DineEquity chairman and CEO, in a statement, adding that it “represents a landmark in the history of DineEquity and both our brands.”

“TSFR is proud to expand our portfolio by uniquely combining two nationally recognized and family-oriented brands into one hybrid restaurant in the City of Detroit," Schostak said.

DineEquity was created in 2007, when family-dining chain IHOP merged with the casual-dining Applebee’s brand. In 2015, the company said Applebee’s headquarters would move from Kansas City, Mo., to Glendale, Calif.

DineEquity said the Detroit combination location will incorporate the classic Applebee's menu, along with many of IHOP's breakfast foods and beverages.

The co-branded unit will be located in General Motors Co.’s Renaissance Center development in Detroit. 

For the third quarter ended Sept. 30, DineEquity reported that same-store sales declined 5.2 percent at 2,028-unit Applebee’s, and fell 0.1 percent at 1,698-unit IHOP. 

Third-quarter income rose 0.7 percent, to $24.27 million, or $1.33 per share, compared with $24.25 million, or $1.28 per share, a year ago. Revenue declined nearly 4 percent, to $156 million.

DineEquity has restaurants in 18 countries and U.S. territories. 

Contact Ron Ruggless at [email protected]

Follow him on Twitter: @RonRuggless

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