IHOP 2012 Annual Report Download - page 50

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32
Key Overall Strategies
DineEquity's Key Strategies
With the completion of our refranchising initiative, DineEquity is continuing with its efforts to drive shareholder and franchisee
value. We have an ongoing program to leverage core competencies across the entire enterprise that is focused on three primary
goals:
• Optimize organization capability;
• Drive profitable organic growth; and
• Reduce costs for both ourselves and our franchisees.
We have a fundamentally differentiated approach to brand management that centers on the powerful and strategic combination
of marketing, menu, operations and remodel initiatives that creates a distinctive and relevant connection with our guests. Additionally,
our shared services operating platform allows our brands to focus on key factors that drive the business while leveraging the
resources and expertise of our scalable, centralized support structure. We believe this is a competitive point of difference. Together,
this closely integrated approach is expected to result in strong brand performance that drives DineEquity's growth and delivers
results for our shareholders.
Applebee's Key Strategies
We are revitalizing the Applebee's brand. Applebee's domestic system-wide same-restaurant sales increased 1.2% in 2012.
This was Applebee's third year of increased same-restaurant sales and we outpaced our group of competitors. We are growing by
executing on the following key strategies: (i) drive profitable sales and traffic; (ii) invest in process and product innovation; (iii)
transform the business; and (iv) improve margins and restaurant level economics.
Drive Profitable Sales and Traffic
• Continued focus on meeting the consumer's need for value throughout 2012, with such promotions as the return of our
successful "Sizzling Entrées" starting at $9.99 nationwide, the introduction of our Fresh Flavors of the Season, and the
rotation of new products into our “2 for $20” offering. We ended the year with Spirited Cuisine featuring our new Napa
Chicken and Portobellos and highly popular new Brew Pub Pretzels & Beer Cheese Dip;
• Continued innovation of the menu. Since the acquisition in 2007, more than 90% of Applebee's menu now consists of
either new offerings or improved offerings with high quality ingredients;
• Continued our unique healthy food offerings by refreshing our "Under 550" calorie menu in January 2011, which
combined with our Weight Watchers menu has established us as a category leader in providing healthy dining options
to our guests; and
• Focused on late-night business through beverage and appetizer innovation and local restaurant marketing efforts.
Invest in Process and Product Innovation
We continue to invest in and drive innovation at Applebee's from both a product and process perspective. We maintain a
significant test and implementation focus to both develop and discover new trends and opportunities within the casual dining
segment and beyond. Our history of innovation is readily apparent in our continual evolution of limited-time product offerings as
well as core menu items. We take a similar approach to evaluation of media strategies and consumer touch points
Transform the Business
In June 2010, we rolled out “Connections,” the new comprehensive restaurant revitalization program involving people, place
and promotional aspects. The people aspect involves re-training and re-certification for kitchen staff and team members. The place
aspect involves exterior and interior modifications to the restaurant to signal change. The promotional aspect involves a local public
relations and marketing plan to re-connect with the neighborhood. Our franchisees have embraced this initiative and by year-end
2012, over 50% of the restaurants in the domestic system have been revitalized.
The Company achieved its strategy to transition to a 99% franchise-operated Applebee's system in 2012 which includes buyers
who are financially qualified, share our vision for revitalizing the Applebee's brand, are willing to invest in the business, and have