Dine Equity Closing Up to 160 Restaurants, Locals Share Concern
Hundreds of Applebee’s Restaurants LLC. and International House of Pancakes (IHOP) locations are going to close this year, and the news has left countless Americans worried about mass layoffs.
Owner of the two famous restaurant franchises, DineEquity Inc (NYSE:DIN), has announced that the company is closing between 104 and 135 Applebee’s restaurants and another 20 to 25 IHOP restaurants by the end of this year.
The announcement came the same day as the company reported its second-quarter earnings and appointed a new CEO. The restaurant chain owner posted declining sales and earnings, revealing its plan to close underperforming stores.
The interim CEO, Richard J. Dahl said, “We are investing in the empowerment of our brands by improving overall franchisee financial health, closing underperforming restaurants and enhancing the supply chain.”
The news has left Americans both sad and worried. Many shared their concerns over the news on social media websites.
The mass closures of restaurants follow an industry-wide decline in casual dining. American consumer tastes are shifting towards healthier food options. The new generation of Millennials is both health- and food-conscious. Meanwhile, America’s love for fast food is also continuing to grow. Casual dining has somewhat lost its touch somewhere between the two.
A restaurant-goer shared similar thoughts.
Additionally, restaurant employees are cited to be amongst those at the highest risk of losing their jobs. Technology is taking over the job market and hurting thousands of traditional jobs. Self-order kiosks and self-serve dining is killing waiting jobs. Mass closures of casual dining restaurants are only adding to the miseries of restaurant workers.
Applebee’s closing up to 135 restaurants. Not good for the waiter and bartender recovery
— zerohedge (@zerohedge) August 10, 2017
The closing of Applebee’s and IHOP restaurants is a glaring addition to the growing list of casual dining restaurant closures announced within the country this year.
Earlier on, another casual dining restaurant, Ignite Restaurant Group, which owns seafood chain, Joe’s Crab Shack, and sports bar chain, Brick House Tavern + Tap, filed for bankruptcy and announced numerous closures.
“DineEquity, Inc. Reports Second Quarter Fiscal 2017 Results,” Dine Equity Inc, August 10, 2017.
“DineEquity Orders Up New CEO, Fewer Domestic Applebee’s Outlets,” The Wall Street Journal, August 10, 2017.