Applebee’s is one of the largest casual dining chains in the U.S., but new data from Placer.ai suggests customers may be visiting less.
The restaurant chain’s owner, Dine Brands (DIN), is going all-in on a revamp that includes remodeling and a dual-branding strategy that will co-locate Applebee’s with IHOP. Now, it’s also adding new menu items to help drive traffic this fall, including Sizzlin’ Skillets and Halloween-inspired options.
The shifts come at a critical time as petrol, fuel and other everyday supplies are growing faster than wages and many high street customers are being squeezed by rising prices.
Applebee’s summer customer traffic drops 3.7%
Placer.ai leverages a panel of tens of millions of devices and uses machine learning to estimate visits to retail locations across the country.
In a report shared with me, Placer.ai estimated that Applebee’s traffic will decline through most months of 2026, with an especially steep 3.7% drop in the summer when gas prices start to spike due to war in the Middle East.
Applebee’s customer traffic year-over-year visit changes:
- January 2026: -3.0%
- February 2026: -1.6%
- March 2026: -8.7%
- April 2026: -11.3%
- May 2026: -4.5%
- June 2026: -6.9%
- July 2026: 3.1%
- August 2026: -7.0%
- September 2026: -1.9%
- June-August 2026 vs. June-August 2025: -3.7%
- Source: Placer.ai
RJ Hottovy, director of analytics research at Placer.ai, said: “Visits to Applebee’s were down year over year in most months of 2026, with summer traffic down 3.7% from 2025. July was a bright spot, with visits up 3.1%, likely helped by the Dollarita promotion.”
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Dine Brands CEO John Peyton acknowledged the challenge during the company’s August earnings call:
“Inflation in dining out, rising gas prices and declining consumer sentiment have led to more cautious spending behavior. Guests are not giving up on dining out, but they are making conscious choices about when and where they eat out,” Payton said. “Applebee’s reported sales of negative 1.8%.”
The average price of gasoline in the United States is $4.33 per gallon, up from $3.06 a year ago, according to AAA. The U.S. Bureau of Labor Statistics says real average hourly earnings, or earnings adjusted for inflation, fell 0.7% over the past year.
Applebee’s menu additions come at a critical time for its strategy shift
The casual dining market in the United States is highly competitive and developed, and many of Applebee’s competitors have been struggling. For example, TGI Fridays was hit particularly hard by the coronavirus pandemic and declared bankruptcy in 2024.
Dine Brands didn’t suffer as much, but the decision to postpone 2020 renovations amid the coronavirus pandemic has allowed it to catch up and invest heavily in modernizing its stores. In addition to the remodel, management is also deep into a dual-location plan that could eventually open as many as 900 restaurants in one location, offering menu items from both IHOP and Applebee’s.
Dine Brands has remodeled 66 stores so far in the second quarter and plans to remodel more than 100 locations in 2026. The company’s portfolio includes 1,557 Applebee’s stores that it exited in the second quarter.
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The dual-location strategy is still in its infancy, with only 45 Applebee’s and IHOP hybrid restaurants open. The results so far are encouraging, and CEO Peyton is aiming to open 80 stores by the end of this year, with more to follow next year. Payton believes they have an advantage over rival chains that have tried similar strategies.
“When other brands have tried to do double duty like KFC in the past, they have competed in the daytime segment. What’s most striking about this is that Dine Brands happens to own the premier AM and premier PM brands. IHOP, since its invention in 1967 (sic) [ 1958, ] Always trying to think of dinner as the hardest part of the day. So, for IHOP franchisees, it’s the dinner solution they’ve been looking for for 60 years. For Applebee’s franchisees, it’s the morning hours and they’re closed. So this is a whole new revenue opportunity that they don’t have,” Payton said at the Piper Sandler conference in September.
Applebee’s
Applebee’s attracts more customers with fall menu changes
The dual-brand strategy is paying off, with sales at these locations growing 1.5x to 2x as customers embrace the option of combining breakfast and dinner food and drinks.
Applebee’s has always had a loyal customer following, but as traffic declines and inflation worsens, the company is under pressure to reflect its value proposition through new menu options.
As a result, the restaurant has added a variety of fall-themed options to its menu, with Sizzlin’ Skillets starting at $12.99.
- Cheesy Chicken Skillet: Grilled chicken breast slathered in Parmesan cheese and white cheddar cream sauce, topped with applewood smoked bacon and crispy onions, served with garlic mashed potatoes and seasoned broccoli for just $12.99.
- Chicken and Shrimp Skillet: Grilled chicken breast with sautéed shrimp in garlic lemon cream sauce, teppanyaki grilled, served with garlic mashed potatoes and seasoned broccoli.
- Garlic Sirloin Skillet: Seasoned prime sirloin steak grilled, basted with butter garlic and parsley, served sizzling with garlic mashed potatoes and seasoned broccoli.
Applebee’s also has limited-time Halloween merchandise:
- reliquary barrel: 20 boneless wings are only $12.99, available for takeout and delivery from October 25th to 31st. No promo code required. While supplies last.
- ghostly sip: Offering $6 cocktails and $4 mocktails, like the Tipsy Zombie or Graveyard Dirty Soda, to pair with any seasonal meal.
The restaurant chain has also relaunched its gift card program to help drive sales during and after the important holiday season. The promotion includes customers receiving a $10 bonus when purchasing a $50 card, and a limited-time sale of two $10 bonus cards if purchased on certain dates (10/30 – 11/1, 11/25 – 11/30 and 12/22 – 12/26).
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