Applebee's sold: company-run outlets to be handed over to franchisees
According to a report published by aktiencheck.de, the American restaurant chain, IHOP, has announced that it is taking over its competitor Applebee's International. IHOP is apparently hoping that it will be able to achieve a number of synergies and save costs as a result of this move.
Further information printed in the report reveals that the majority of the 508 restaurants currently run by Applebee's are to be handed over to franchisees in the future. Furthermore a large part of the real estate in the company’s portfolio is to be sold and then rented back from the new owners. IHOP is expecting positive results from the Applebee's takeover from 2008 onwards.
Applebee’s International is active in 49 US states as well as in a further 16 countries around the world with its Applebee’s Neighborhood Grill & Bar restaurants. They are friendly local restaurant-bars providing good quality food at moderate prices with the restaurant furniture reflecting the area they are located in. At the end of 2006, there were – according to company figures – 1,930 restaurants working within the network with the majority of these already being run by franchisees.