Applebee’s-IHOP tie-up: Does it hit a sweet spot?

Two iconic players in the American casual dining landscape – Applebee’s and IHOP – are set to come under the same roof in select locations. This move comes as part of plans by both chains’ parent company – Dine Brands – to grow both brands.

To examine the potential for such a move to lure customers, we turn to data from YouGov BrandIndex to understand how well the two brands synergize.

Impression scores of each customer base towards the other brand

Among IHOP customers, nearly half have a positive impression of Applebee’s, while only 11% have a negative impression. Overall, out of all casual dining restaurant chains tracked by YouGov BrandIndex, Applebee’s ranks third in positive Impression scores among IHOP customers, behind only Olive Garden and Texas Roadhouse.

Among Applebee’s customers, 40% have a positive impression of IHOP and only 6% have a negative one. Interestingly, nearly a quarter of Applebee’s customers are not aware of IHOP (24%). The coming together of the two brands in some locations can certainly help improve this aspect. Out of the 30 fast casual dining restaurants tracked by YouGov BrandIndex, IHOP ranks third for positive Impression among Applebee’s customers.

Consideration scores provide insight into how much the brands stand to gain

As of now, three in ten Applebee’s customers say they would consider dining at IHOP (30%). Among IHOP customers, 37% say they would consider dining at an Applebee’s chain. While substantial, these figures show that the brands have room to gain more ground by teaming up.

But how do the two customer bases compare demographically?

Applebee’s customers have a higher proportion of young people, with nearly a fourth of them being aged between 18 and 29. Less than a fifth of IHOP’s customers fall in that bracket. Folks aged 45-64 make up a slightly bigger slice of the IHOP customer pie compared to Applebee’s (33% vs 30%). But overall, the variances between the two groups aren’t too profound.

While the gender split between both brands is identical (51% men and 49% women), some variances exist in the income background composition of both groups. While 39% of Applebee’s customers are from lower income households, this group makes up 43% of IHOP customers. This difference is evened out by middle-income customers, where Applebee’s has a four-percentage point surplus (46% vs 42%). Members from higher income households make up 6% of both groups.

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