IHOP 2014 Annual Report Download - page 11

At DineEquity,® we continually test and refine new
approaches, in order to evolve the roles that the
Applebee’s® and IHOP® brands play in consumers’
lives. Our strategy includes finding ways to make
investments that can yield big wins. We applied this
approach to both brands in 2014.
Raising the bar at Applebee’s
At Applebee’s, we initiated a reset strategy that
involves identifying the defining elements of the brand
personality, then using them as the basis to update
the brand in relevant ways for today’s consumers.
For 2014, Applebee’s generated positive full-year
domestic system-wide same-restaurant sales of 1.1%.
Applebee’s full-year, same-restaurant sales were at
the highest levels since 2012, and the brand’s fourth
quarter same-restaurant sales performance of 2.8%
was the best quarterly performance since the
second quarter of 2011. Menu items like our All-In
BurgersTM performed particularly well.
We anticipate building on this momentum as the
tangible rollout of the reset initiative takes effect,
with innovations in food offerings, menu architecture
and design, and marketing and communications
strategies. In all that we do for Applebee’s, we’re
striving to put the bar back into the grill and bar
concept. It started with the introduction of Bar
Snacks, Pub Plates, and Shareables in February 2015,
and will include an expansion of popular offerings
such as Brew Pub Pretzels and new favorites like
Kobe-Style Meatballs, Sriracha Shrimp, Salsa Verde
Shredded Brisket Nachos and more.
We are also reinvigorating the bar at Applebee’s,
with new initiatives that better reinforce the brand’s
position as America’s modern grill and bar. The reset
will extend into the actual bar as well, where the
brand will focus on modernizing the look and feel, as
well as innovating for “on trend” beverage offerings
and contemporizing service platforms.
Winning hearts and minds at IHOP
Our differentiation strategies at IHOP began to
take hold in 2014 in a big way, with strong results
driven by a new menu design and architecture,
understanding the needs of our guests, and
improvement in restaurant operations.
At IHOP, domestic system-wide same-restaurant
sales increased by 3.9% in 2014, representing
the strongest full-year sales increase since 2004,
fueled by solid performance from our All You
Can Eat Pancakes, Summer Signature Pancakes,
and Holiday Celebrations promotions. IHOP’s
same-restaurant sales increased by 6.1% for the
fourth quarter of 2014, reflecting the highest
quarterly sales increase since the first quarter of
2004. To build on this success, we’re continuing to
innovate and simplify our menu offerings, combining
new, limited-time items with an update to the core
menu three times a year. The first of these launches
began in February 2015 with Criss-Croissants,
TM a
flaky, buttery croissant that’s baked fresh in a waffle
iron, then filled, folded and topped with sweet cream
and delicious fruits.
At IHOP, innovation centers on the core aspects of
the brand experience that are beloved by millions.
This is guiding the development of new IHOP
marketing, including an updated logo that serves as
a fun, yet powerful expression of what it means to
enjoy time at IHOP.
IHOP has enjoyed a brand cachet in breakfast,
beloved by our guests, since the first restaurant
opened its doors in 1958. In 2015, we’ll continue to
innovate in this key area by developing strategies that
leverage the most familiar and appealing aspects
of IHOP’s core identity into exciting new experiences
that are relevant and compelling to today’s guests.
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