IHOP Is Closing Around 100 Stores Due To Financial Issues Related To COVID-19
IHOP has become the latest restaurant chain to feel the impact of COVID-19 as it plans to close down a number of locations due to financial strains brought on by the pandemic.
The beloved restaurant's parent company, Dine Brands Inc—which also owns Applebee's—announced on Thursday, October 30 that it would be shutting down almost 100 locations across the U.S. over the next six months. This, however, isn't the first time that the chain has had to close down locations this year. During the earlier parts of 2020, IHOP was forced to permanently close 35 restaurants as a result of the ongoing pandemic.
"We're confident we will eventually replace these severely under-performing restaurants with better performing restaurants," Jay Johns, IHOP's president said on a call with investors on Wednesday, Business Insider reported.
A representative for Dine Brands also revealed in a statement that, "These closures will allow us to remain focused on continuing to close the gap on sales, as well as focus on key priorities including expanding off-premise, ensuring restaurant safety and providing compelling value and innovation."
Although mandates have become more relaxed in certain cities and states, Business Insider reported that by the end of September, IHOP had 167 of its locations operating strictly on a takeout basis and an additional 91 are still temporarily closed.
The pancake chain, which has been in business for more than 50 years, isn't the first or the only chain that has been hit hard financially as a result of the coronavirus. Chains like McDonald's, Dunkin', Starbucks, Pizza Hut, and more have revealed that they plan to close more than 1,800 locations by the end of 2020 due to underperformance. Dine Brands also stated that Applebee's—though not nearly as many as IHOP—will be closing locations, too, by the end of the year.
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