The age of Frankenstein franchises is coming: First IHOP-Applebee’s combo restaurant to open in Texas

Everyone loves a good fast-food combo meal, but what about a combo restaurant? How about IHOP pancakes with an Applebee’s steak and fries?

Dual-concept or twin restaurants are a way to introduce multiple menu items and concepts with less financial risk (think Taco Bell and KFC, Auntie Anne’s and Cinnabon, Jimmy John’s and Dunkin’). Now, the first IHOP-Applebee’s combo restaurant in the U.S. will be opening outside San Antonio early next year.

What will it look like? Renderings show IHOP on one side, and Applebee’s (featuring a large bar with TVs) on the other, according to CNN. They will share an entrance, front-of-the-house staff, and a kitchen. Customers seated in either side can order off both menus.

The dual-branded restaurant comes as both IHOP and Applebee’s struggle with weakening sales, a trend among casual-dining restaurants and fast-food chains across the country. Dine Brands (NYSE: DIN), which owns both chains, announced disappointing third-quarter results on Wednesday, with Applebee’s same-store sales falling nearly 6%, and IHOP’s falling 2.1%. That’s as Americans are spending less to eat out amid inflation, rising prices, and changing eating habits.

“During the third quarter, we continued to experience consumer pullback and the pressures of a highly promotional operating environment,” said John Peyton, chief executive officer of Dine Brands Global, in a company statement.

Internationally, there are already 13 IHOP-Applebee’s combo restaurants.

Kohl’s and Babies “R” Us did it too

Casual-dining and fast-food franchises aren’t the only ones trying to combat poor sales with dual-branded stores. Retailers are too.

Department store chain Kohl’s, which has experienced recent financial challenges, teamed up with Babies “R” Us to roll out baby-focused products in about 200 stores. The retail giant is also offering Babies “R” Us products online via Kohls.com.

Babies “R” Us went out of business in 2018 along with parent company Toys “R” Us, amid a wave of closures in the baby-goods retail sector over the past seven years following the bankruptcies of buybuyBaby and Gymboree. But the brand staged a comeback last year.