IHOP 2014 Annual Report Download - page 15

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As a 99% franchised company with two category-
leading, iconic brands, DineEquity® has a proven
track record of attracting successful, business-savvy
franchisees. Our franchisees demonstrate their
confidence in our ability to build brands through their
ongoing collaboration and investment in our shared
success. For example, we expect that domestic
Applebee’s® franchisees will have completed the latest
remodel by year-end 2015, infusing capital into their
restaurants and our brand. We also invest extensive
time and effort into initiatives that foster collaboration
with our franchisees, so that the entire organization
can benefit from their industry expertise.
Dening success at Applebee’s
The Applebee’s Franchise Brand Council (FBC) made
meaningful progress toward enhanced collaboration
in 2014. Together with DineEquity team members,
they worked to establish a Code of Conduct that
outlines success factors for collaboration, along with
an execution process for innovation testing, and a
broader platform for system-wide communication.
This group of key franchisees has worked closely with
Applebee’s leadership to establish, reposition and
reset areas of the business that were perceived as not
adding value. They also weigh in with feedback on
strategic branding, marketing or operational initiatives.
Sharing the love at IHOP
The gains made at IHOP® in 2014 were developed
in conjunction with support from the Franchise
Leadership Council (FLC). FLC members and fran-
chisees system-wide volunteer to collaborate with
DineEquity to test processes for new menu items,
marketing initiatives, or evaluations of cost or quality
options for ingredients. In 2014, we teamed up with
IHOP franchisees to create the Service Excellence
Task Force, reinforcing the welcoming environment
our restaurants provide guests. In 2015, we are
building on that work as part of our “Love in the
House” culture-based strategy, which will be
developed and tested with our franchisees and
impact all touch points in our restaurants.
Expanding our global footprint
Fiscal 2014 was a foundational year for our
international business. We created our first-ever
dual-branded International Division with regional
centers of excellence, providing in-market support
across all major disciplines to our franchise partners.
We established a long-term strategic growth
plan focused on three regions with the greatest
opportunity: Asia, Latin America and the Middle East.
This plan also led to the launch of a 360 degree
brand evolution initiative designed to align all aspects
of our brands with the needs of local consumers and
franchise partners, all while reinforcing our brands’
leadership position and compelling heritage.
While we continued to strengthen our relationships
with existing franchise partners to entice further
expansion, we greatly expanded our International
development team. By the end of 2014, we signed a
total of six new international development agreements
between both brands, representing 37 new restaurant
obligations. Our franchisees also opened 25 new
restaurants in 2014, the most international openings
in the Company’s history, including the first IHOP
location in Bahrain and our first Applebee’s locations
in Guam and Indonesia.
ollab oration
Applebee’s Franchise
Brand Council (FBC)
sub-committees are
devoted to innovation
in Operations, People
and Technology.
13