Applebee’s has struggled with sales and traffic declines. | Photo: Shutterstock
An Applebee’s franchisee has closed eight restaurants in the Kansas City area, leaving two locations still operating in the casual-dining chain’s former hometown.
In a statement, Applebee’s President Tony Moralejo said the closures “look to be the result of financial circumstances and decisions made by the franchisee.”
“This situation is unfortunate, and we continue to believe the Kansas City area is a great neighborhood for Applebee’s restaurants,” he said. “We are exploring options about the future of these restaurants.”
Applebee’s has deep ties to Kansas City. In 1988, a pair of franchisees in the city, Abe Gustin and John Hamra, acquired the chain from W.R. Grace and Co., taking it public a year later. The company was headquartered in the area until 2015, when it moved to California as part of owner DineEquity’s plans to consolidate its operations.
The closures represent another setback in the chain’s plans to return to net new unit growth. After closing about 300 underperforming restaurants starting in 2017, the franchisor had been targeting a return to growth last year. Instead, it has continued to shrink. At the end of the second quarter, it had 1,627 restaurants worldwide, 35 fewer than it had the year before.
Applebee’s has also struggled with sales and traffic declines that have impacted much of the restaurant industry, and in particular full-service chains. The franchisor has reported negative same-store sales for five straight quarters.
Several other full-service restaurant chains have closed multiple locations recently, including TGI Fridays, Denny’s, Shari’s and Hooters.
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