RISE - Menu Monitor

Applebee's Neighborhood Grill & Bar
Headquarters
4551 W. 107 St., Overland Park, Kansas 66207 USA
Tel: (913)967-4000 Fax: (913)341-1694
www.applebees.com
Ownership: Public
Segment: Full Service Varied Menu
System Characteristics 2006 2005 2004
U.S. Systemwide Sales ($000) 4,542,914 4,192,228 3,888,398
Company-owned ($000) 1,196,258 1,082,641 976,798
Franchised ($000) 3,346,656 3,109,587 2,911,600
U.S. Number of Units 1,841 1,732 1,613
Company-owned 521 486 424
Franchised 1,320 1,246 1,189
International Sales ($000) 152,311 113,918 89,687
International Units 89 72 58
Average Sales/Unit ($000) 2,551 2,520 2,482
Concept Positioning |
Applebee's Neighborhood Grill & Bar is the largest chain of casual-dining restaurants in the U.S. Applebee's friendly
"neighborhood" atmosphere and extensive menu of appetizers, entrées and cocktails appeals to a wide and varied
demographic of diners. Its restaurants are full-service operations open for lunch, dinner, snacks and weekend brunch.
Applebee's International, the parent company of Applebee's, operates approximately 25% of its units; the remaining stores are
franchised.
Units are primarily freestanding, suburban buildings or endcaps of strip centers or enclosed shopping centers. Interiors are
designed to reflect intimate pub settings, with antiques, historic pictures, Tiffany-style lamps, latticework and plants featured to
create the ambience. A horseshoe shaped bar, seating approximately 17 additional customers, also serves as a focal point in
the restaurant. Several units have added outdoor patio seating. Each restaurant displays items that are unique to the city of its
location. The company currently has four freestanding prototypes in use, with the larger units ranging from 4,700–5,000 sq. ft.,
with seating for 150–200 patrons. Its other two are for use in its “small town” expansion and range from 3,800–4,300 sq. ft.
with seating for 135–145 customers.
William Palmer opened the first Applebee's in 1981 in two former fast-food outlets in Atlanta, GA. W.R. Grace’s Creative Food
‘N Fun acquired the company in 1983. The brand changed its name to Applebee's Neighborhood Grill & Bar in 1985, after
Taco Villa acquired Creative Food 'N Fun from Grace for six million common shares. In 1988, Applebee's was purchased for
$20 million by a group of investors who formed Applebee's International, Inc. An initial public offering was tendered in 1989. In
early 1995, Applebee's completed its acquisition of Innovative Restaurant Concepts, operator of the Rio Bravo concept and
divested itself of those operations in 1999 to Chevy’s Fresh Mex for approximately $59 million. In late 1997, it announced the
acquisition of 32 Applebee’s from Apple South (now Avado Brands) as part of that franchisor’s plan to exit the Applebee’s
system. In the summer of 2007, IHOP Corp. bid $2.1 billion to acquire the bar-and-grill chain. Once the acquisition is complete,
IHOP plans to expand the chain by renovating its menu and décor and selling most company-owned units to franchisees.
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