Applebee’s is moving forward with a sweeping restructuring plan that includes shutting down underperforming restaurants across multiple states while investing in a new dual-branded concept designed to strengthen long-term growth.
The casual dining chain confirmed it expects between 20 and 35 closures in 2025 as part of a broader effort to streamline operations and offset rising food, labor and utility costs. Despite the changes, the company continues to operate roughly 1,500 locations worldwide and says it is focused on stabilizing its footprint rather than scaling back entirely.
The strategy comes under parent company Dine Brands Global, which also owns IHOP.
Indiana and Missouri locations close after decades
Among the most notable shutdowns are two long-standing Applebee’s restaurants in Evansville, Indiana, located on East Morgan Avenue and Pearl Drive. Both locations had served the community for nearly 30 years before abruptly closing. Signage was removed and customers were thanked for their loyalty in posted notices.
In Columbia, Missouri, the restaurant near West Stadium Boulevard and Interstate 70 Drive SW closed on Feb. 18, 2026, marking another 30-year run that came to an end. The closures reflect what the company describes as difficult but necessary decisions tied to profitability and operating pressures.
New York and Kansas City-area impacts
In Glenville, New York, the Applebee’s at 268 Saratoga Road is scheduled to permanently close on April 12, 2026. Company representatives cited ongoing economic challenges that made the location unsustainable.
The Kansas City metropolitan area has also been significantly affected. Eight restaurants in the region shut down in late 2024 following a franchisee bankruptcy. Locations in Mission, Overland Park and Olathe were among those impacted, leaving several communities without their longtime neighborhood gathering spot.
Additional closures across the country
Other recent permanent closures include Appleton, Wisconsin, in December 2024, Sarasota, Florida, in May 2025, and Little Rock, Arkansas, in December 2023. Each closure reflects a broader pattern affecting segments of the casual dining industry as consumer habits evolve and operational costs continue to climb.
Industry analysts note that rising fuel prices, increased labor expenses and shifting dining preferences have pressured chains that rely heavily on dine-in traffic. Many brands are reevaluating store performance metrics and prioritizing locations with stronger long-term viability.
Expansion through dual-brand concept
While certain communities are saying goodbye to familiar storefronts, Applebee’s is simultaneously expanding a new dual-branded format that houses Applebee’s and IHOP under one roof. The concept allows both brands to share kitchen space, staff and operating expenses in an effort to increase efficiency and boost revenue.
The first combined Applebee’s and IHOP location opened in Seguin, Texas, in February 2025. The company plans to launch up to 80 dual-branded restaurants by the end of 2026, positioning the model as a key pillar of future growth.
Executives believe the shared approach will help offset costs while offering customers broader menu options throughout the day, from breakfast staples to classic bar-and-grill favorites.
What it means for diners
For loyal customers, the closures mark the end of decades-long traditions in some neighborhoods. Applebee’s has long marketed itself as a casual, family-friendly dining option, known for approachable pricing and community ties.
Still, the company maintains that the restructuring is intended to preserve its core business and ensure long-term sustainability. Rather than signaling a full retreat, the current wave of closures reflects a recalibration designed to adapt to changing market conditions.
As Applebee’s navigates this transition under Dine Brands Global, the brand’s future appears focused less on sheer location count and more on operational efficiency and strategic partnerships.
Source: Times Now
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