Topic > Applebee's Analysis - 1525

Applebee's is a casual dining restaurant chain owned by DineEquity and headquartered in Glendale, California. DineEquity, which also owns IHOP, acquired Applebee's in 2007 for about $2.1 billion. The chain has over 2000 locations in 2013 with plans to open even more in the future. The merger with IHOP led to it becoming the largest casual dining restaurant company in the world with more than 3,000 locations worldwide. Applebee's has faced difficult times recently. Increasing competition in the casual dining segment from chains like Chipotle, Buffalo Wild Wings, Olive Garden and others has made this a cutthroat industry. Increased competition isn't the only problem Applebee's is currently facing. Consumers are starting to become more health conscious. The menu items that Applebee's has to offer are anything but healthy. Applebee's plans are to keep their doors open and are currently making drastic changes to remain competitive and profitable. Section I: Summary of Pertinent Facts (Context) The Points Applebee's strength currently has over 2,000 locations across North America. This makes Applebee's a leader in the casual dining segment. Thanks to its many locations, Applebee's also has an established customer base. Applebee's is a well-known brand. Consumers have at least heard of Applebee's because of their numerous locations or their aggressive advertising campaigns. Applebee's is also in the midst of remodeling its locations and updating them with tables. These tables will upgrade the restaurant and increase its efficiency.WaknessesApplebee's is constantly changing menu items. While the change is good, Applebee's should focus on creating specialty items that it can be known for. Consumers have many other restaurants to turn to...... middle of paper... it's not just about making the restaurant feel local, it also gives people from out of town an incentive to stop in and consider a drink and something to eat. The final recommendation I have for Applebee's is to add some sort of interactive entertainment. Such entertainment could be bowling, ping pong or even open mic. This will give customers a reason to come or stay longer than they should, which would increase the average amount spent by each user. Hosting open mics (events featuring amateur poets, singers and comedians) will allow Applebee's to be more involved in the community and help build a relationship. Additionally, if a person is exhibiting, they are likely to invite friends and family, which would lead to increased sales. Providing alternative entertainment is something that most local restaurants do, this would serve as a person to person promotional campaign.