IHOP may close up to 100 stores due to financial reasons related to COVID

By RADIO.COM

IHOP is the latest victim of the coronavirus pandemic.

On Thursday, the chain announced it would be closing almost 100 locations nationwide in the coming six months, per USA Today.

The pancake house's parent company, Dine Brands Global, which also owns Applebee’s, made the announcement during the third-quarter earnings report citing financial strains amid COVID-19.

“Given the impact of the pandemic on individual restaurant-level economics, the Company is evaluating the viability of greatly underperforming domestic IHOP restaurants,” the report noted.

Applebee’s is also set to close roughly 15 restaurants before the end of the year.

This isn’t the first time the chain closed down locations in 2020.

Earlier this year, IHOP had to shut down 35 restaurants due to the novel virus.

“We're confident we will eventually replace these severely under-performing restaurants with better performing restaurants," Jay Johns, IHOP's president said to investors, Business Insider reported.

Due to restrictions on indoor dining in many states, the outlet noted that IHOP still had 167 locations still operating with takeout only menus, while certain locations remain closed.

Many restaurants and chains have had their business impacted by the pandemic including McDonald’s, Dunkin’, Starbucks, and Pizza Hut.

The chain also revealed its new, slimmed-down menu, which is only two pages rather than the regular 12-page long menu.

The new list is not just smaller, and it will also be disposable due to the COVID-19 pandemic.

"IHOP went from a 12-page, reusable menu to a two-page, single-use menu to increase the safety of our guests and restaurant team members, to simplify operations for new and returning team members, and to help ensure that we can maintain a stable supply chain for all of the ingredients we use," Brad Haley, IHOP's chief marketing officer, said early June.

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