An Applebee’s location in Indianapolis, Indiana. Credit: Jonathan Weiss/Shutterstock.com.

Dine Brands Global, the parent company of International House of Pancakes (IHOP) and Applebee’s, is assessing the launch of dual-branded locations in the US.

Dual-branded stores integrate the dining and cooking spaces of the two restaurant chains while maintaining separate entrances.

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The concept is being implemented across select international markets, with the latest prototype launched in León, Mexico.

During Dine Brands Global’s recent earnings call, CEO John Peyton revealed that eight dual-branded prototypes are operational internationally.

In a statement to FOX Business, Peyton said: “We will continue to monitor the success of this test concept and will consider options for further expansion in the US in select locations if and when it makes sense to do so.”

The joint IHOP-Applebee’s locations have reportedly performed well, with Peyton noting that revenues for these dual-branded sites are “on average… two times or more what it was before, what you would expect, because with the two brands, we can address all four parts of the day.”

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Peyton told Nation’s Restaurant News: “At breakfast, when there are more IHOP customers, customers can be seated in the Applebee’s area and vice versa at dinner.”

The eventual plan is to introduce such dual-branded locations in the US, although no specific timeline has been provided.

Hundreds of Applebee’s restaurants have closed since 2017, including 46 in 2023, due to rising costs.

In February 2023, Dine Brands Global reported a net income of $33.03m for the fourth quarter ending 31 December 2023, marking a 191% increase from $11.35m in the previous year.

Despite this significant rise in profits, total revenues saw a slight decline to $206.3m from $208m in the same quarter of 2022.