IHOP 2009 Annual Report Download - page 32

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options for an additional 103 restaurants. This number includes 16 restaurants under single-store
development agreements, 266 restaurants under multi-store development agreements and 75 restaurants
under international development agreements.
In 2010, we expect to open a total of 60 to 70 new IHOP restaurants, including 50 to 55 franchise
restaurants, three to four area license restaurants in Florida and seven to 11 restaurants outside the
U.S. or in non-traditional channels.
The following table represents our IHOP restaurant development commitments, including options,
as of December 31, 2009:
Contractual Openings of
Restaurants by Year
Number of Signed 2013 and
Agreements at 12/31/09 2010 2011 2012 thereafter Total
Single-store development agreements ....... 16 12 4 — — 16
Multi-store development agreements ....... 72 57 49 34 126 266
International development agreements ...... 6 7 6 3 59 75
Total .............................. 94 76 59 37 185 357
The actual number of openings in any period may differ from both our expectations and the
number of signed commitments. Historically, the actual number of restaurants developed in a particular
year has been less than the total number committed to be developed due to various factors including
weather-related delays, other construction delays, difficulties in obtaining timely regulatory approvals
and various economic factors.
Composition of Franchise System
The number of restaurants held by an individual franchisee ranges from one to 58 restaurants. The
table below sets forth information regarding the number of IHOP restaurants owned by domestic
franchisees as of December 31, 2009 as well as the total number of restaurants falling into each of the
listed ranges.
Franchisees Restaurants
Percent of Percent of
Number of Restaurants Held by Franchisee Number Total Number Total
One............................................ 181 50% 181 14%
Two to Five ...................................... 121 34% 337 26%
Six to Ten ....................................... 31 9% 223 17%
Eleven to Fifteen .................................. 12 3% 143 11%
Sixteen and over .................................. 15 4% 395 31%
Total(a) ......................................... 360 100% 1,279 100%
(a) Percentages may not add due to rounding.
Menu
The IHOP menu offers a large selection of high-quality, moderately priced products designed to
appeal to a broad base of customers. These include a wide variety of pancakes, waffles, omelets and
breakfast specialties, chicken, steak, sandwiches, salads and lunch and dinner specialties. Most IHOP
restaurants offer special items for children and seniors at reduced prices. In recognition of local tastes,
IHOP restaurants typically offer a few regional specialties that complement the IHOP core menu. Our
Food and Beverage Innovation Department works together with franchisees and our Marketing
13