For decades, Applebee’s was a fixture of American casual dining, known for neighborhood locations, value-driven menus, and late-night appetizers. But a steady stream of closures and mounting industry pressures has raised a question many diners are now asking: Is Applebee’s in trouble?
A shrinking footprint
Applebee’s has quietly been closing underperforming locations across the U.S. over the past several years. While the brand still operates thousands of restaurants nationwide, its footprint is smaller than it was a decade ago. Many closures have taken place in suburban and rural markets where traffic never fully rebounded after the pandemic. (Around 300 stores have closed since 2017.)
Parent company Dine Brands Global, which also owns IHOP, has described the closures as part of a strategy to optimize the system by removing weaker locations. Still, for longtime customers, the disappearances have been noticeable, especially in smaller communities where Applebee’s once served as a go-to sit-down option.
Financial pressure in casual dining
In the fourth quarter of fiscal 2024, Applebee’s reported a 4.7% year-over-year decline in domestic comparable same-restaurant sales, reflecting weaker traffic and customer spending.
Applebee’s struggles reflect broader challenges facing the casual dining sector. Rising labor costs, higher food prices, and rent increases have squeezed margins, while consumers have pulled back on discretionary spending. Value-focused diners are increasingly choosing fast-casual restaurants or quick-service chains instead.
Dine Brands has acknowledged these pressures in earnings calls, noting softer traffic trends even as menu price increases help offset costs. While Applebee’s is not facing bankruptcy, its financial performance has been uneven, with profits closely tied to promotions, discounts, and limited-time offers.
Still standing, but evolving
Despite closures, Applebee’s is not disappearing. The chain continues to invest in menu updates, bar-forward concepts, and delivery options to stay relevant. Executives maintain that the brand remains profitable overall, even as it trims weaker locations.
For now, Applebee’s appears to be downsizing rather than collapsing — but its future depends on whether a once-dominant casual dining model can still resonate with today’s diners.
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