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Applebee's testing fast casual concept
Applebee's is on top of the casual dining sector, and its success may be due to the fact that it has leaned into the fast casual mindset.
January 2, 2020
While the casual dining sector has struggled over the past several years, Applebee's reported positive sales growth in 2018 with a 2.3 percent increase, according to Franchise Times. Compared to the 0.9% decline in systemwide sales of the casual dining sector, Applebee's is on top of the world. And its success may be due to the fact that it has leaned into the fast casual mindset.
"(We're) in a unique position to adapt to the increase consumer demand of To Go, delivery, and meals on the go," Scott Gladstone, VP of strategy and development, said during in interview with FastCasual.
The chain was one of the first casual brands to offer to-go and delivery services and is now testing a fast casual concept — Applebee's Express.
The 2,500-square-foot restaurant, which opened in December 2019 in Mobile, Alabama, features limited menu items andis designed to fit into guests' busy lifestyles. Customers may choose to-go, online ordering, Applebee's Delivery, or order at the counter or dine in, as there is seating for 72 guests. Soda and beer selections are also available.
"It has same neighborly feel of Applebee's with a new look and the convenience of a fast casual setting," Gladstone said.
What's different, however, is that the format is built for speed.
"The restaurant and menu have been engineered to provide a seamless and convenient guest experience," Gladstone said. "Whether a quick bite to eat with friends or Applebee's Delivery for a movie night at home, guests can enjoy their Applebee's favorites when and where they choose."
Although Gladstone predicts that there is both market and guest demand for Applebee's Express, he's taking a wait-and-see approach on the growth plan.
"We will watch the mobile location to identify areas to optimize the guest experience and look to other markets where Applebee's Express would be a good fit," he said.
Offering a fast casual format is something the brand's parent company, Dine Brands, seems to understand. The company — which also owns IHOP — announced last month that it was creating a fast casual version of the pancake-centric chain — Flip'd. It's on target to open in April in Atlanta with additional sites in New York City, Washington D.C., Denver, and San Francisco under exploration for 2020.
"In looking at what exists today in terms of fresh, fast menu options — particularly at breakfast — there's still tremendous opportunity for growth," said IHOP President Jay Johns. "After talking extensively with consumers in large cities across the country, we designed Flip'd by IHOP to deliver on what folks told us they want and need from a trusted brand like IHOP in a fast casual setting, putting an emphasis on quality ingredients, speed, to-go and delivery."
