Everyone has a favorite casual dining chain. For fans of both IHOP and Applebee’s, there’s exciting news: Texas will soon host the first U.S. combined IHOP-Applebee’s restaurant. The parent company of both chains, Dine Brands, has announced that the first dual-branded location will open early next year in Seguin, Texas. With 15 more sites under consideration nationwide, this trend-setting concept could expand quickly, reshaping the way we think about our go-to casual dining spots.

Seguin, a vibrant town just 35 miles east of San Antonio, is already emerging as a destination for unique dining experiences. In addition to the IHOP-Applebee’s location, Seguin recently made culinary headlines with Burnt Bean Co., a barbecue restaurant awarded a Michelin Bib Gourmand designation. With the world’s largest Buc-ee’s located just 25 miles away, Seguin seems well on its way to becoming a dining hub that balances the eclectic with the everyday.

Inside the IHOP-Applebee’s Concept

Plans for the combined IHOP-Applebee’s model were initially introduced in early 2024. The dual-brand restaurant features separate dining areas, each styled with the familiar themes of IHOP and Applebee’s, while sharing a single kitchen and management. Customers will be able to order from either menu no matter which section they’re seated in, blending breakfast classics and late-night comfort food under one roof.

The motivation behind this concept is to maximize efficiency and productivity. IHOP traditionally sees its highest traffic during breakfast hours, while Applebee’s draws crowds in the afternoon and evening. By combining these brands, Dine Brands hopes to keep the kitchen and staff busy throughout the day, turning what would be downtime for one restaurant into peak time for the other.

The Seguin location represents Dine Brands’ commitment to innovation amidst a challenging restaurant market. In 2023, the company successfully expanded IHOP with 33 new locations, but Applebee’s faced hurdles, closing 46 locations while adding only 10 new ones. The joint restaurant model aims to provide a solution by allowing both brands to share costs on operations and facilities, with early data showing that dual-brand locations can achieve up to twice the revenue of traditional, single-brand restaurants.

An artist’s rendering of the new IHOP-Applebee’s hybrid, merging breakfast classics with evening favorites.

How Dual-Brand Restaurants Are Shaping the Industry

The IHOP-Applebee’s collaboration is part of a growing trend in the restaurant industry where brands optimize resources by sharing space and operations. Similar partnerships include GoTo Foods' joint Auntie Anne’s and Cinnabon locations and Inspire Brands' Jimmy John’s and Dunkin’ combo stores. These hybrid locations cater to different meal times, merging various flavors to satisfy diverse tastes.

Dual-brand setups address several challenges facing the restaurant industry, particularly as dining habits evolve. Hybrid locations offer operational advantages by minimizing fixed costs, which has been crucial for chains like Applebee’s that have struggled to maintain individual outlets. By pairing with IHOP, Applebee’s benefits from its partner's stronger morning foot traffic, while IHOP gains from Applebee’s established evening presence, creating a win-win scenario for both brands.

What’s Next for IHOP and Applebee’s?

With a plan to open 15 more dual-branded locations across the U.S., Dine Brands is banking on the versatility of the IHOP-Applebee’s model to breathe new life into both brands. As more locations open, the company hopes to establish a network of dual-brand hubs that cater to diners’ changing needs, potentially including innovations like shared digital ordering and expanded drive-through options to keep pace with current trends.

As this unique model gains traction, other restaurant groups are likely to take note, especially as the industry seeks sustainable ways to adapt to economic pressures and shifting consumer behaviors. If all goes well, Texas won’t be the only state where you can order a stack of pancakes alongside a plate of riblets.

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The IHOP-Applebee’s joint restaurant concept is more than just an innovative twist on casual dining; it represents a strategic rethinking of how to serve diverse customer needs efficiently. As this model rolls out, it could be a game-changer in how we enjoy casual dining, setting the stage for the future of America’s favorite family-friendly restaurants.