IHOP 2015 Annual Report Download - page 14

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12
ACCELERATING DEVELOPMENT WITH NEW RESTAURANTS
AND NON-TRADITIONAL LOCATIONS
One of the biggest gains from our enhanced collaboration with the interna-
tional team was the evolution of our approach to developing restaurants in
non-traditional locations. We were guided by our strategy to provide guests
with opportunities to connect with DineEquity’s brands wherever, when-
ever and however they choose — by putting restaurants in innovative places
where guests want us, but where we are not today. We see small format,
non-traditional locations as major drivers of future growth, because they
enable us to leverage our international strategies to more deeply penetrate
high-cost real estate markets like New York City, San Francisco, and more.
When it comes to identifying these types of locations, we are thinking
outside of the box by evaluating place-
ments in college campuses, airports,
travel plazas, military installations,
casinos and more.
In 2015, we made meaningful
progress in this area, opening four
new restaurants in non-traditional
locations. These included a new IHOP
Express® at the University of Texas at
Dallas, a traditional IHOP at Arizona
State University, and a non-traditional
IHOP at University Park, West Virginia
University’s new mixed-use residence hall. For 2016 and beyond, we envision
opening our first IHOP in a travel plaza, and potentially adding another
airport location.
We are accelerating traditional development domestically as well, having
opened 44 new Applebee’s restaurants and 55 new IHOP restaurants in
2015. For fiscal 2016, our Applebee’s franchisees are projected to develop
between 35 and 45 new restaurants on a gross basis, the majority of which
are expected to be domestic openings. At IHOP, we expect our franchisees
and area licensees to develop between 60 and 70 new restaurants gross,
the majority of which are expected to open domestically. Looking forward,
we anticipate building momentum at both brands by opening significant
numbers of traditional and non-traditional restaurants in the years ahead.
Applebee’s international
strategy centers on the
positioning: “There’s Always
a Reason to Celebrate.”
Test restaurant; Guadalajara, Mexico