These Two Brands Will Open Their First Combo Restaurant in Texas

SEGUIN, Texas (KPEL News) - Everything’s bigger in Texas, and now that includes an innovative new restaurant concept: a dual-branded IHOP-Applebee’s.

This will be the first IHOP-Applebee’s combo location in the United States, and it’s set to open in early 2025 in Seguin, Texas, a suburb of San Antonio. If it’s successful, this unique two-in-one dining experience could soon spread across the Lone Star State.

Get our free mobile app

Texas Leads the Way with a First-of-Its-Kind IHOP-Applebee’s

Dine Brands, the parent company behind IHOP and Applebee’s, is betting big on Texas with this experimental new concept. By merging both brands under one roof, Dine Brands aims to create a one-stop dining spot that serves breakfast, lunch, and dinner. IHOP will handle mornings and brunch, while Applebee’s takes over for afternoons, dinner, and late-night.

According to John Peyton, CEO of Dine Brands, combining the two brands allows each to play to its strengths. "It allows IHOP to shine in the morning and Applebee’s to thrive in afternoons and evenings," Peyton said. The strategy isn’t just about variety for customers—it’s also about giving struggling locations a boost by increasing traffic and expanding their menu offerings throughout the day.

With 15 locations in the U.S. targeted for this concept and a dozen expected to open next year, Texas being the first state to get one highlights the state’s importance to the brand and its willingness to embrace new ideas in casual dining.

Why Texas Is the Perfect Fit for a Dual-Branded Restaurant

Texas is a sprawling state with a diverse mix of urban, suburban, and rural communities, making it an ideal testing ground for this kind of restaurant concept. Here are a few reasons why Texas is a great place to launch the nation’s first IHOP-Applebee’s combo:

Texas Loves Big, Bold Concepts: Texans aren’t shy about trying new things, especially when it comes to food. A dual-branded IHOP-Applebee’s caters to Texans’ appreciation for variety and convenience, offering everything from pancakes in the morning to burgers and steaks at night—all in one place.
Wide Appeal Across Multiple Dayparts: In Texas, families, early risers, and brunch-goers can enjoy breakfast and brunch at IHOP, while Applebee’s serves the lunch, dinner, and late-night crowds. For Texans with busy lifestyles, this dual-brand setup provides flexibility and convenience for different dining occasions.
Meeting the Needs of Smaller Texas Towns: Smaller Texas towns, like Seguin, could benefit from a dual-branded location that provides options all day. For areas without a wide range of dining options, an IHOP-Applebee’s combo could serve as an all-in-one dining hub. If this first location in Seguin is successful, we could see more popping up in other Texas towns and suburbs.
Boosting Business for Both Brands: Both IHOP and Applebee’s have faced challenges in recent years with declining sales and occasional restaurant closures. By combining both brands, Dine Brands hopes to keep existing locations profitable and create a new model for casual dining in Texas.

Inside Texas’s First IHOP-Applebee’s Dual Location in Seguin

The first IHOP-Applebee’s combo in the U.S. will open in Seguin in early 2025. Dine Brands is working with one of its franchisees, the R. Hakim Group, to renovate an existing IHOP location, which will temporarily close in November 2024 to undergo renovations. When it reopens, this dual-branded location will feature shared kitchen space, cross-trained staff, and a combined menu that lets both brands shine.

By sharing resources, IHOP and Applebee’s can streamline operations and reduce costs—a strategy that could help struggling restaurants stay open. “The dual-brand concept offers complimentary dayparts, a shared kitchen, cross-trained staff, and an expanded menu, all of which help improve unit economics,” explained Peyton.

Could Texas See More of These IHOP-Applebee’s Combos?

With its reputation for going big, Texas might be the perfect place to test this ambitious concept. If the Seguin location performs well, Dine Brands could expand the dual-branded IHOP-Applebee’s to other cities and towns across the state. Imagine seeing one of these combo spots in areas like Houston, Dallas, Austin, or even smaller Texas communities that would benefit from a full-service restaurant with morning-to-night options.

The idea also fits well with Texas’s “bigger is better” culture. Texans enjoy having options and value, and a combined IHOP-Applebee’s offers both. It’s easy to picture this concept thriving in cities where residents appreciate convenience, whether it’s a quick breakfast, a family-friendly lunch, or a casual dinner with friends.

Dine Brands’ Broader Strategy: Saving Casual Dining with Innovation

Beyond the dual-branded model, Dine Brands is also exploring new ways to attract customers and increase traffic at both IHOP and Applebee’s locations. For instance, Applebee’s has partnered with the NFL for promotions and introduced a $9.99 burger-and-fries deal to compete with similar offerings from other casual dining chains. Meanwhile, IHOP has launched new menu items like “Anytime Tacos” and revamped its breakfast burritos to bring fresh options to the table.

Tony Moralejo, president of Applebee’s, noted that the brand needs to rethink its approach to value in a competitive dining landscape. “We can no longer rely on what worked so well for us in the past,” he said, signaling a shift toward innovative deals and new menu ideas that appeal to today’s diners.

What Texans Are Saying: Would You Try an IHOP-Applebee’s Combo?

The launch of Texas’s first dual-branded IHOP-Applebee’s is sure to spark some opinions. Some Texans might love the idea of having both breakfast and dinner options in one spot, while others may prefer the standalone experience each brand currently offers. Either way, it’s a bold move that could set a new trend in casual dining.

What do you think? Would you visit a dual-branded IHOP-Applebee’s in Texas? Could this concept catch on in other Texas towns and cities? Share your thoughts and let us know if you think this will be a hit or a miss for the Lone Star State!

Get our free mobile app