Applebees and IHOP owner Dine Brands think that its deals can lure away fast food customers who have grown frustrated with the prices of its menus. As many consumers pull back on their restaurant spending, Applebee’s and IHOP are fighting against a larger group of rivals than usual for a smaller pool of customers.
Dine Brands CEO John Peyton said that full-service restaurants, fast-food chains and even eating at home are all competing for diner’s dollars.
So, in order to rise above the competition, Applebee’s has been leaning into a value with a slate of promotions that include the return of Dollaritas, which makes Peyton confident that it can beat out the fast-food chains vying for its customers.
According to a recent report, low-income consumers have been visiting Applebee’s even less than ever before. According to Peyton, consumers with incomes lower than $50k account for about 40% of Dine’s customers.
Applebee’s isn’t the only casual-eating dining chain aiming at fast food big names, Chilli’s recently also rolled out an ad campaign that calls out to the Big Mac and other fast food burgers for their insane prices.
And McDonald’s is certainly feeling the heat. CEO Chris Kempczinski told analysts on the company’s latest earnings call that “everybody’s out there with a value message,” which is why the chain is looking to create a nationwide value menu.
Besides leaning into deals, Applebee’s might also get an edge on the competition from a triad of recent pop-culture moments: with a climactic cameo in the tennis drama film “Challengers,” an Applebee’s-motivated meltdown on “Survivor,” and a shoutout from football legend Peyton Manning during Netflix’s roast of his former rival Tom Brady.
