As a sommelier and brewer, I must admit that I am not directly involved in the operations or financial decisions of Applebee's. However, I can provide some insights based on the information available.
According to recent reports, Applebee's is facing challenges in achieving its goal of returning to net new unit growth. The company initially planned to close a certain number of restaurants this year, but it seems that the situation has become more complicated than anticipated. Instead of the previously forecasted range of 10 to 20 net fewer U.S. restaurants, Applebee's now expects to finish 2023 with 25 to 35 net fewer locations.
This news may come as a disappointment for those who were hoping for a growth in Applebee's presence. The closure of restaurants suggests that the company is struggling in certain markets or facing other difficulties that have led to this decision. While the specific reasons for these closures are not explicitly mentioned, it is not uncommon for restaurant chains to close underperforming locations or those that no longer align with their strategic goals.
It is important to note that restaurant closures are not exclusive to Applebee's. The restaurant industry as a whole has been facing challenges, especially during the ongoing COVID-19 pandemic. Many establishments have had to adapt to changing consumer preferences, increased competition, and the impact of lockdowns and restrictions on dining out.
In my personal experience, I have witnessed the effects of these challenges on local restaurants and even larger chains. The decision to close locations is never an easy one, as it affects not only the business itself but also the employees and the communities they serve. It is always disheartening to see a beloved neighborhood restaurant shutter its doors.
However, it is important to remember that closures are often a necessary step for businesses to realign their strategies, cut costs, and focus on profitable locations. It is a way for companies to ensure their long-term sustainability and growth. While it may be unfortunate for those who have enjoyed dining at Applebee's, it is crucial for the company to make these difficult decisions in order to remain competitive in the ever-changing restaurant landscape.
Based on the information available, it appears that Applebee's is indeed closing more restaurants than initially expected. The challenges faced by the restaurant industry as a whole, compounded by the ongoing pandemic, have likely influenced this decision. While closures may be disappointing for fans of the brand, they are a necessary step for Applebee's to navigate the current landscape and position itself for future success.