DineEquity Inc. Developing Strategies to Drive Traffic

DineEquity Inc., AppleBee’s parent company, has been focusing on specific guest’s emotional connections to the brand in order to develop strategies that will drive traffic. The company’s second quarter results that were released this week showed a same-store sales increase of 3.2% systemwide for the quarter ended June 30; DineEquity Inc stated that this showed positive sales across all the dayparts. The results for this quarter proved to be the fifth consecutive quarter with same-store sales increases following the revamping of the chains’  menus that aimed to entice guests to order more appetizers and higher priced main dishes.

The company’s main objective is still to consistently drive traffic and have overall positive performances. Following an extensive research study on Applebee’s target audience, the company has been working towards developing strategies which include solutions for speed, growth, and building guest loyalty. The research differentiates consumers by their opinions on casual dining in general rather than by more socioeconomic indicators such as income levels or other demographics.

Julia Stewart. DineEquity Inc. chair and chief executive states that,“it’s less about age and generational. It’s more about an emotional attune to how they think about restaurants and casual dining and us, in particular, and what it will take to get them to come more often…they’re very clear about what they want us to do differently, and we have to find our sweet spot, especially in competing against fast casual.”

Based on the results of this research DineEquity Inc is developing a loyalist program for Applebee’s and sister company IHOP in order to satisfy the customers desire to have a more customizable experience. Another area that is being improved based on this consumer-specific research is the bar business which customers have expressed that a more ‘relevant’ and ‘contemporary’ business would be appreciated. To read more about the changes being made throughout DineEquity Inc. chains, click here

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