When IHOP acquired Applebee’s in 2007 to form DineEquity Inc., the primary area that needed improvement at Applebee’s was the menu, said Applebee’s President Mike Archer.
While the all-American grill-and-bar chain has attracted guests with its high- value proposition, the food quality was a big reason why people weren’t coming back.
In fact, 30% of lapsed Applebee’s frequenters cited food- and menu-related issues as the cause for their defection, according to a Morgan Stanley consumer- research study released this week, which was more than at any of the other 12 casual-dining chains included in the survey.
However, since Applebee’s has been launching new menu items approximately every two months, the chain has been showing signs of improvement.