Applebee’s is permanently shuttering several locations across the United States, underscoring continued pressures facing the casual dining industry as operators contend with higher costs and shifting consumer behavior.
At least four Applebee’s locations have recently closed or are scheduled to close across Indiana, New York and Missouri, according to multiple published reports. The closures come as parent company Dine Brands Global works to streamline underperforming restaurants while investing in new growth strategies.
Two Evansville, Indiana locations — on East Morgan Avenue and Pearl Drive — recently closed after serving the community for decades. A location at 268 Saratoga Road in Glenville, New York, is scheduled to close in April, and a Columbia, Missouri restaurant on West Stadium Boulevard has also shut its doors after roughly 30 years in operation.
In Evansville, signage was removed from the buildings and a farewell message posted for customers, thanking the community for its support over the years.
Applebee’s has reduced its U.S. footprint in recent years, continuing a multi-year trend of closing underperforming restaurants while focusing on higher-volume markets and franchise performance.
Industrywide Headwinds
The closures come amid broader challenges in the casual dining sector. Restaurants nationwide have faced elevated food, labor and occupancy costs in the wake of the pandemic, while consumer spending patterns have shifted toward quick-service, fast-casual and takeout options.
Industry groups report that food and labor costs have risen substantially over the past several years, squeezing margins for full-service operators already navigating tighter discretionary spending. Higher credit card processing fees, insurance costs and utilities have further pressured profitability across the sector.
Other chains have also reduced their footprints or restructured operations in recent months. Darden Restaurants, for example, has closed multiple Bahama Breeze locations as it reevaluates the brand’s performance. Several regional and national casual dining chains have announced selective closures as part of cost-control efforts.
Strategic Pivot to Dual Branding
Despite the closures, Dine Brands is pursuing expansion through a dual-branded Applebee’s and IHOP concept. The company has announced plans to open dozens of combined locations, including its first U.S. dual-branded restaurant in Seguin, Texas.
The hybrid model allows customers to order from both brands under one roof, with a shared kitchen and cross-trained staff. Company leadership has said the concept is designed to maximize real estate efficiency and drive higher traffic across dayparts.
Dine Brands has indicated that additional dual-branded units are planned in the coming years as part of its long-term growth strategy.
Applebee’s continues to operate roughly 1,500 locations worldwide. While selective closures are part of routine brand management, the shuttering of long-standing neighborhood restaurants highlights the competitive and cost pressures reshaping the casual dining landscape.
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