Restaurants often thrive when people have disposable income, so the greater trend of national chains shrinking their location footprint is largely tied to consumers facing increased costs for living, inflation, and stagnant wages. While customers struggle to balance ways to stretch a restaurant budget, national chains are responding by pulling back on their less profitable locations and shutting them down.
Applebee's is the latest national restaurant chain to announce store closures for 2026, but they're pivoting in a way that's unique. Learn which locations are closing this year, and how Applebee's is adapting by doing something different.
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Evansville, Indiana
- 5100 E. Morgan Ave.
- 5727 Pearl Drive
Evansville has had Applebee's for nearly 30 years, but both locations have now shut their doors permanently. Many customers learned this by way of a sign on the door thanking them for their loyalty, after the locations had been closed. According to local sources, the official closing date was February 19.
Glenville, New York
- 268 Saratoga Road
Glenville is losing an Applebee's on April 12. They cited the rising cost of food, utilities, and labor as the economic challenges that led to their decision to close down the location. The franchise owner stated that workers would be able to transfer to other locations to keep their jobs. However, they may likely have to commute further to other locations.
Columbia, Missouri
- 2010 Interstate 70 Dr. SW
Columbia lost an Applebee's on February 18. The area still has two remaining locations, one on East Broadway and another in Jefferson City.
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Additional Applebee's closings
In 2025, Applebee's parent company, Dine Brands Global, announced a projected 20 to 35 closures as part of its plan to close underperforming stores, so there may be more coming down the pipeline.
However, it won't just be closures for Applebee's, as there may be openings this year, too.
Applebee's unique plan
Rather than just closing restaurant locations, Applebee's is also going to be opening some new ones, with a twist. Their parent company, Dine Brands, expects to have about 80 dual-branded Applebee's/IHOP locations open or under construction by the end of 2026. These new dual locations are set to open throughout 2026.
What this means for parent company Dine Brands Global
Chief Executive John Peyton understands the consumer environment is challenging right now and sees that there has been a slowdown in the fast casual dining scene. He said "Guests remain highly intentional about how they spend their discretionary dollars. Value remains a critical driver in that decision-making."
In response, the restaurant chains are doubling down on value, with a focus on portion size, quality of the food, and providing an enjoyable dining environment.
How are Applebee's sales
From a general industry view, increasing operating costs may be contributing to the closures. Data from the National Restaurant Association shows that food and labor expenses have risen about 35% in the past five years. Meanwhile, restaurants are also facing higher costs for rent, supplies, and credit card processing, which further squeeze already narrow profit margins.
For Applebee's specifically, same-store sales dropped 0.4% in the fourth quarter last year, but overall for the year rose 1.3%, according to the Wall Street Journal. This is up from 2024, when there was a 2% decline in sales. The brands are also expecting an increase in commodity costs this year, citing higher costs of beef and the impact from tariffs, according to Chief Financial Officer Vance Chang.
Dine Brands Global has tried bold moves in the past
It's no secret that restaurants took a big hit during the pandemic, when indoor dining was largely restricted, but Dine Brands Global shifted focus to off-premise sales through ghost kitchens and virtual brands during that time.
For those who have not yet encountered this phenomenon, restaurants such as Applebee's and IHOP are able to create a new restaurant name on delivery apps (such as UberEats and DoorDash) that appear to the customer as a separate business. According to Forbes, this led to a temporary 200% to 300% increase in sales from 2020 to 2021.
Some consumers have criticized the practice because the food may come from an existing chain restaurant. All of this is to say that Dine Brands Global has taken bold moves in the past and plans to chart a bold path forward with its combined restaurant openings.
How many Applebee's are left
Applebee's saw significant closures in 2024, reducing its location count to 1,642. By the end of 2025, there were a total of 1,567 restaurants left. Despite these closures, if you love those Applebee's appetizers, you'll likely still be able to get your fix even if your closest option is shutting down.
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Bottom line
The New York Post reports that the new dual-branded Applebee's and IHOP locations are starting to pop up, with a few opening in March. A New York location in Mount Pleasant in Westchester County kicked off the grand opening of the dual concept at 18 Saw Mill River Road on March 18.
Executives hope that the combination of these two well-known brands allows customers to enjoy dining out while still helping them eliminate some money stress. The restaurants plan to pair two menus under the same roof, with a shared kitchen and staff.
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