News

Transaction volume was up and Cap Rates came down for Applebee’s investment properties throughout the state of South Carolina in 2015. In 2014 only 6 Applebee’s traded as compared to 13 in 2015. The average CAP Rate dropped from 7.38% in 2014 to 6.67% in 2015. In an era where casual dining chains have clearly been struggling, this is somewhat surprising considering the domestic same-store sales decreased by .05 percent in the third quarter of 2015. DineEquity, Applebee’s parent company, has since revised expectations saying same store sales would be flat or up  1 percent.  The updated façade of many locations was simply not enough to boost sales, so Applebee’s is testing a new restaurant design featuring an open kitchen and outdoor seating. One of the biggest changes will be revitalizing the bar. The bar menu will be offering many new cocktails and an expanded craft brew selection.  The food menus will focus on fewer items but much higher quality. Hopefully all these changes being rolled out in 2016 will get same store sales going in the right direction.

Applebee’s new prototype

Applebee’s Market Report for South Carolina