Applebee’s to close down 8 locations in same state after franchisee files for bankruptcy just days before announcement

According to The Sun, Eight Applebee’s locations are closing as Apple Central KC, a franchisee, filed for Chapter 11 bankruptcy this week in the District of Kansas. The franchisee cited ongoing financial difficulties as the reason for the closures, which impact several locations in the Kansas City area.

Applebee’s President Responds

Applebee’s President Tony Moralejo stated that the decision to close the branches ultimately came from the franchisee. Despite efforts to keep them open, financial pressures led to the need for these shutdowns.

The closures impact Applebee’s locations in Kansas City, Mission, Overland Park, Raytown, Olathe, Lee’s Summit, and Leavenworth. The franchise’s Blue Springs and Northland, Kansas, branches will continue to operate for the time being.

Past Challenges for Apple Central KC

This isn’t the first time Apple Central KC has faced issues. In 2018, the franchisee made headlines when it closed seven area locations without corporate approval. This incident followed a controversy in which two Black customers were wrongfully accused of dining and dashing, leading to three employees being dismissed.

In 2022, the franchise faced additional criticism when an executive’s email went viral, controversially suggesting that inflation could be leveraged to reduce wages. The executive was eventually dismissed.

More Applebee’s Closures Across the Country

The recent closures reflect broader challenges for Applebee’s as its parent company, Dine Brands, predicted a net loss of 25 to 35 locations nationwide by the end of the year.

Just two weeks ago, another Applebee’s franchisee, Louisiana Apple, filed for bankruptcy, citing debts amounting to $8.3 million. The franchise, which operates locations in Kentucky, Oklahoma, Indiana, and Arkansas, has also experienced financial pressures.

Earlier in 2024, another Applebee’s in Antioch, California, closed after operating for over 25 years, and in May, a location in Hudson, New York, also shut its doors.

Strategies for a Turnaround

Tony Moralejo, who joined Applebee’s as president last year, has been focused on a turnaround strategy aimed at reversing these trends. The plan includes smaller, more cost-effective locations and partnerships, such as a recent promotional deal with the NFL.

Also read: Changes in SNAP benefits: new allowances for retirees over 60 years of age

However, despite these strategies, certain locations could not be salvaged. “Closures are a last resort,” Moralejo emphasized.

Other Restaurant Chains Facing Similar Struggles

Applebee’s is not the only major chain dealing with closures. TGI Fridays, MOD Pizza, Boston Market, Red Lobster, and Tijuana Flats are among the other popular dining brands facing similar challenges. Rising inflation, changing consumer habits, cost-cutting, and underperformance are factors contributing to closures in the restaurant industry.

In February, Bloomin’ Brands, the parent company of Outback Steakhouse, revealed that it would be closing 41 locations across its brand portfolio due to similar pressures.