SEGUIN, Texas – A new hybrid eatery is coming to Seguin, offering the menus of two restaurants in one location.
CNN reports the nation’s first Applebee’s-IHOP combo restaurant will open in Seguin early next year.
Seguin is about 35 miles east of San Antonio.
The concept of a dual-branded restaurant is not new — consider KFC-Taco Bell — but this venture marks the first time for Dine Brands, which owns Applebee’s and IHOP, to bring this concept to the United States.
Based on renderings released by Dine Brands, CNN said, IHOP will be on one side, and Applebee’s on the other, featuring a large bar with TVs.
The full menus for both chains will be available, and the restaurants will share a kitchen. Additionally, staff will be trained to work on both sides.
Citing Dine Brands CEO John Peyton, CNN reported there are already 13 such combo restaurants open in Canada, Latin America, and the Middle East, and they are being well-received.
“(They) will also fuel our growth rate next year,” Peyton said.
Both restaurants reported lackluster earnings Wednesday. Applebee’s same-store sales fell nearly 6% in the third quarter, while IHOP’s slumped 2.1%, according to CNN.
It was noted that hybrid restaurants are generating 1.5 to 2 times the revenue of a traditional outlet.
Peyton acknowledged that the combination is intended to be a financially sustainable concept for franchisees, responding to a trend of customers cutting back on spending.
Note: The video segment in this story incorrectly states the new restaurant will be 35 miles west of San Antonio. That detail has been corrected in this web story to reflect its location 35 miles east of San Antonio in Seguin.