Dine Brands Doubles Down on Dual-Brand Restaurant Growth

Dine Brands is accelerating its growth strategy, using new restaurant openings, remodels, relocations and dual-branded Applebee's/IHOP locations to strengthen its franchise system.

Restaurant Dive reported that Dine Brands opened 24 units in the first quarter of 2026, compared with 10 during the same period a year earlier. CEO and Applebee's President John Peyton said development remains a key priority, supported by dual-brand formats, Applebee's remodels and targeted investment in company-owned restaurants.

The dual-brand strategy is one of the most interesting parts of the plan. IHOP is strongest at breakfast, while Applebee's has greater strength across lunch, dinner and bar-style occasions. Combining the two brands can allow a single site to serve more customers across different dayparts.

Dine Brands expects to reach 80 dual-branded US units by the end of 2026. IHOP is also continuing to open 30 to 40 restaurants per year, with more than 90 percent of those openings coming from existing franchisees. That shows strong operator confidence inside the network.

The company is also paying close attention to real estate. Some Applebee's restaurants are reaching the end of long leases, and Dine Brands is encouraging franchisees to relocate where trade zones have shifted. Two recent Applebee's relocations produced sales increases of more than 50 percent compared with the previous locations, with one seeing a 95 percent lift and another seeing a 60 percent lift.

Remodelling is another major focus. Applebee's completed 11 remodels during the first quarter through its Lookin' Good program. Restaurant Dive reported that redesigned stores have seen mid-single-digit sales lifts, with some post-renovation stores seeing increases between 5 percent and 15 percent.

IHOP is also starting a three-year renovation cycle with a new design called California Heritage, already used in the IHOP side of dual-branded locations. Early remodels have reportedly produced double-digit increases in sales and traffic.

For franchisees, the message is clear: Dine Brands is not relying on one growth lever. It is combining better sites, refreshed stores, dual-brand formats and selective corporate ownership to test and improve performance.

For the wider franchising sector, this shows how mature restaurant brands are trying to grow in a tougher market. Rather than simply opening more stores, franchisors are thinking harder about where stores sit, how they look, how many dayparts they serve and whether the economics work for franchisees.

"Rather than simply opening more stores, franchisors are thinking harder about where stores sit and whether the economics work for franchisees."