Applebee’s President Tony Moralejo to step down, will serve as advisor until June

USA – Tony Moralejo has announced his departure as Applebee’s president, effective March 4, but will stay on as a special advisor until June 4 to support the transition, according to a Securities and Exchange Commission filing by parent company Dine Brands.

Dine Brands CEO John Peyton will serve as interim president for Applebee’s as the company searches for a new leader with expertise in restaurant operations, marketing, and brand management.

The nationwide search follows a period of sluggish sales performance across Dine Brands’ portfolio, which recently led to a 9% reduction in its corporate workforce.

Since joining Applebee’s in January 2023, former president Tony Moralejo focused on lowering construction costs to drive franchise development and enhancing menu innovation.

However, despite promotional efforts like the Dollarita, the brand has faced challenges in achieving same-store sales growth.

Dine Brands is now exploring the potential of dual-branded IHOP-Applebee’s locations to optimize operations and boost revenue, as discussed in its latest earnings call.

Peyton emphasized that co-branded locations would capitalize on the strengths of both brands, following a strategy adopted by other companies like Fat Brands and GoTo Foods.

He noted that IHOP would dominate the morning segment while Applebee’s would drive traffic in the afternoon and evening.

The combined menu aims to enhance daypart coverage while offering more variety and value to customers.

Applebee’s same-store sales declined by 5.9% in Q3 2024 compared to the previous year, according to Dine’s latest 10-Q report.

During the Q3 earnings call, Moralejo highlighted the brand’s efforts to develop an integrated value platform to address casual dining’s ongoing struggle to attract guests.

He stated that the goal was not only to replicate successful promotions but also to strengthen brand relevance and engagement with customers through a new strategic initiative.

Acknowledging Moralejo’s contributions, Peyton expressed appreciation for his leadership, particularly in navigating economic challenges and fostering strong franchisee relationships.

Headquartered in Pasadena, California, Dine Brands Global, Inc. (NYSE: DIN) operates through its subsidiaries to franchise Applebee’s Neighborhood Grill + Bar®, IHOP®, and Fuzzy’s Taco Shop®.

As of September 30, 2024, the company oversees more than 3,500 restaurants across 19 international markets. One of the world’s largest full-service restaurant operators, Dine Brands expanded into the fast-casual segment in 2022.

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