Why Is Applebee’s Closing Restaurants?
A few dozen a year, out of roughly 1,500. Weak locations are being shut as leases and franchise agreements end, while the company pours its effort into combined Applebee’s and IHOP restaurants.
Most closure headlines are about a handful of named locations. Across a chain of around 1,500 restaurants, the numbers are small, typically 1 to 2 percent a year.
How many Applebee’s have closed
| Year | What happened |
|---|---|
| 2017 | More than 100 restaurants closed during a difficult period for the brand |
| 2023 | 33 net domestic closures |
| 2024 | Company guidance of 25 to 35 net domestic closures |
| 2025 | About 110 Applebee’s and IHOP restaurants closed combined |
| 2026 | Company expects only 5 to 15 Applebee’s closures |
Net means closures minus openings, so the true number of shut buildings can be a little higher than the headline figure in years when a few new restaurants also open.
The reasons Applebee’s gives
Applebee’s president Tony Moralejo has been direct about this. He said the closures are not a sign of struggling franchisees but a sign of struggling trade areas, and that it is natural for a mature brand to close restaurants as neighborhoods change and franchise agreements expire.
| Reason | What it means |
|---|---|
| Declining trade areas | Shopping centers and roads that were busy when a restaurant opened decades ago may have lost traffic. |
| Agreements ending | When a franchise agreement or lease runs out, operators can choose not to renew a weak location. |
| Rising costs | Labor, food and rent costs have gone up, which squeezes restaurants with lower sales hardest. |
| Falling traffic | Same restaurant sales fell 4.6 percent in the first quarter of 2024 as casual dining lost customers. |
The real plan: Applebee’s and IHOP under one roof
The more interesting part of the story is what is replacing some of those closures. Applebee’s and IHOP are owned by the same company, Dine Brands Global, and it has started building restaurants that serve both menus in the same building. IHOP covers breakfast, Applebee’s covers the evening, and the kitchen stays busy all day.
The first US dual brand restaurant opened in Seguin, Texas in 2025. By early 2026 there were 32 operating in the US, with at least 50 more expected during the year. Chief executive John Peyton has said these combined restaurants bring in about 1.5 to 2.5 times the revenue of a single brand location.
How IHOP ended up owning Applebee’s in the first place is covered in who owns IHOP.
Is Applebee’s going out of business?
No. Applebee’s still has around 1,500 restaurants, and its systemwide sales rose 1.3 percent in 2025. Closures are part of how a mature chain trims weak sites, and the planned number for 2026 is lower than in recent years.
The same pattern shows up at other big chains. Subway has closed far more restaurants for different reasons, as covered in why Subway is closing so many stores. The story behind the Applebee’s name is in why is it called Applebee’s, and current prices are on the Applebee’s menu.
Related Questions
Why is Applebee’s closing restaurants?
To shut weak locations. Applebee’s says closures come from declining trade areas and franchise agreements reaching their end, not from struggling franchisees overall. Rising costs and lower casual dining traffic have also made low sales locations harder to keep open.
How many Applebee’s are closing?
A small share each year. There were 33 net domestic closures in 2023 and guidance of 25 to 35 in 2024. For 2026 the company expects only 5 to 15 Applebee’s closures, out of roughly 1,500 restaurants.
Is Applebee’s going out of business?
No. Applebee’s still has around 1,500 restaurants and its systemwide sales rose 1.3 percent in 2025. Closing 1 to 2 percent of locations a year is normal for a mature chain.
What is the Applebee’s and IHOP combined restaurant?
A single building that serves both menus, with IHOP covering breakfast and Applebee’s covering lunch and dinner. The first US one opened in Seguin, Texas in 2025, and the company says they bring in about 1.5 to 2.5 times the revenue of a single brand restaurant.
Who decides which Applebee’s close?
Mostly the franchisees. Every Applebee’s has been franchise owned since 2015, so individual owners decide whether to renew a lease or agreement on a location that is not making enough money.
Are more Applebee’s closing in 2026?
Some, but fewer. Dine Brands expects 5 to 15 Applebee’s closures in 2026, lower than in recent years, while it opens more combined Applebee’s and IHOP restaurants.
More on Applebee’s
About this guide. USA Food Menu is an independent reference site and is not affiliated with Applebee’s or Dine Brands Global. Closure numbers come from company guidance and published reporting and change over time. Current prices and calories are on the Applebee’s menu.
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