Dine Brands Navigates Economic Pressure with Irresistible Promotions

Despite facing inflationary pressures that have squeezed diners at popular restaurants such as Applebee’s and IHOP, Dine Brands has successfully navigated the money-conscious consumer in today’s economy through the implementation of irresistible promotions. As the CEO of Dine Brands, John Peyton revealed during an interview that Applebee’s $1 margaritas and boneless wings have become a popular choice among consumers due to their promotional offers and value. The company’s parent brand also includes IHOP and Fuzzy’s Taco Shop. According to Peyton, the guest who earns $50,000 or below, which accounts for approximately 40-45% of the company’s guests, dined out less frequently in the first quarter and spent their money more cautiously than in the past while taking advantage of promotional deals. In light of the current economic situation, Peyton stated that the company’s restaurants have experienced tougher times and that they have persisted through both good and bad economies. He added that the company’s menu, which is loaded with a variety of options, allows them to introduce fresh and tempting items every four to eight weeks to captivate guests. Peyton further revealed that Applebee’s promotional offers, such as the $0.50 boneless wings, have contributed significantly to the company’s growth, serving as a major draw for guests. Moreover, the company recently introduced the Dollar Rita, a margarita priced at $1, which has been profitable for the franchisees. Peyton acknowledged that formulating promotional offers is a combination of both science and artistry. While ensuring that the promotions remain profitable, the company also takes into account the cost of goods and conducts postmortem analyses following each promotion. To keep guests engaged, the company launches new and thrilling promotions every four to eight weeks, based on the outcomes of previous promotions. Dine Brands is also exploring the use of robot servers to address the scarcity of food industry personnel, which has resulted from the pandemic.