Applebee’s Menu: New Item Every Quarter, 8-Quarter Pipeline Built
Dine Brands CEO John Peyton says the Applebee's menu now has an eight-quarter pipeline of new dishes. Third-quarter same-store sales rose 0.9%, traffic improved, and more new items are planned over the next 12 months, including new menu platforms in 2027.
Dine Brands CEO John Peyton said the company has built an eight-quarter pipeline of new entrees and appetizers for the Applebee's menu, and that the rollout is already lifting traffic and sales.
In the third quarter, Applebee's returned to same-store sales growth of 0.9%, Peyton said on an earnings call. Traffic improved compared with the prior year.
Two years ago, Dine Brands set a goal of debuting a new Applebee's item every quarter. After a year and a half of work, the pipeline is in place.
"What you see is that pipeline is now built and it's continuous," Peyton said. "We'll keep adding to it and now we can roll out more food more often."
Third-quarter launches
The menu plan is largely tied to Applebee's 2 for $25 menu. Dine Brands tests items with guests to make sure they are profitable for franchisees.
During the third quarter, Applebee's introduced Bacon Cheeseburger Wonton Tacos and O-M-Cheese-adilla burgers. The tacos extend the chain's taco platform.
Peyton said the tacos were one of Applebee's strongest appetizer launches since the pandemic. They outperformed the Best Loaded Potato Waves, which debuted earlier this year.
Platforms and trend spotting
New items will stay linked to specific menu platforms, such as Bourbon Street, which features cajun-spiced dishes. Each platform can carry two to four versions of a dish. That helps "make it more desirable for guests to want to come back to that platform over and over again," Peyton said.
Applebee's will also add new platforms in 2027, each with two to three items. Peyton said they are meant to be long-term additions. He said the chain is not ready to give details on the food.
Dine Brands studies consumer trends to decide which platforms will resonate with guests. The O-M-Cheese Burger, launched earlier this year, grew out of a trend the company saw in Japan, where burgers are halved and dunked in a skillet of cheese.
It became Applebee's most-ordered burger. Content tied to it generated over 9 billion impressions and reached 96 million people on social media.
The company is also weighing what Gen Z and younger customers want. That includes customization, sharability and meals that photograph well for social media. Dine also holds regular focus groups with guests and consumers, Peyton said.
IHOP uses the same approach
Dine Brands applies a similar method to IHOP. This summer the chain rolled out Dubai Chocolate Pancakes to tie a specialty pancake to a growing trend.
IHOP linked the launch to a campaign across three restaurants, where it offered a $100 version with gold flakes. Peyton said the aim was to generate excitement.
Dubai Pancakes are part of IHOP's Spotlight Pancakes, which carry new flavors at a slightly higher price than everyday pancakes. Peyton said these premium pancakes helped drive incremental engagement and trade-up opportunities in the quarter.
Guests will keep gravitating to Applebee's 2 for $25 menu and IHOP's everyday $6 value menu, he said. Restaurants will still promote premium items on the menu and at the table top to sell higher-margin dishes.
"And looking ahead, we expect to have more new food items launching over the next 12 months than we have had in the last few years," Peyton said.
