As of Mar 31, 2017, the company operated 10 IHOP restaurants, while franchisees operated 2,007 Applebee’s restaurants in 49 states in the US and 15 countries internationally, and franchisees and licensees operated 1,718 IHOP restaurants in 50 states in the US and 10 countries internationally.
In fiscal 2016, the company closed 17 net Applebee's restaurants and opened 50 net IHOP locations. During the first quarter of 2017, the company closed 9 net Applebee's and 5 net IHOP locations, systemwide. In fiscal 2017, the company expects Applebee's franchisees to open 20 to 30 new restaurants, while closing 40 to 60 restaurants, and IHOP franchisees projected to develop between 75 and 90 new restaurants, while closing 18 restaurants.
At year-end, of the 10 company-operated restaurants, the company leased the building and the land for 5 sites, and owned the building but leased the land for 5 sites. Of the 1,556 IHOP restaurants operated by franchisees, 59 were located on sites owned by the company, 632 were located on sites leased by the company from third parties and 865 were located on sites owned or leased by franchisees. All licensed IHOP locations and franchised Applebee's locations were located on sites owned or leased by the area licensees or the franchisees.
Leases of IHOP restaurants generally provide for an initial term of 20 to 25 years, with most having one or more 5-year renewal options. Leases of Applebee's restaurants generally have an initial term of 10 to 20 years, with renewal terms of five to 20 years.
Free-standing Applebee's range from approximately 5,000 to 5,400 square feet, with seating for about 225 guests, and restaurants located in strip centers, shopping centers, and malls generally require more square footage to achieve the same seating. Free-standing IHOP buildings are approximately 5,000 square feet with seating for 150 to 185 guests. There are also several non-traditional IHOP concepts: full-service (2,000 to 5,000 square feet), fast casual (1,200 to 3,500 square feet) and quick service (600 to 3,500 square feet.
|Company-operated restaurant growth||-9.1%||-9.1%||-67.6%||-5.6%||2.9%||-81.8%|
|Franchised restaurant growth||0.6%||0.9%||2.0%||1.1%||0.4%||6.0%|
|Systemwide restaurant growth||0.6%||0.9%||1.3%||1.0%||0.4%||1.3%|
|Avg restaurant gross sq ft||4,800||4,800||4,800||4,800||4,800||4,800|
|Avg restaurant gross sq ft growth||-0.1%||-0.1%||-0.0%||-0.0%||-0.1%||-0.0%|
Notes:Reflects systemwide figures, including company-operated, franchised and area licensed restaurants