Applebee’s Vs. Chilli’s Success
For years, Applebee’s Neighborhood Grill + Bar was a staple of American casual dining. With its affordable entrees, familiar menu, and welcoming vibe, Applebee’s grew to become the largest full-service restaurant chain in the country throughout much of the 2000s. However, in recent years, its dominance has faded. Where Applebee’s once led the pack, it now trails behind a new wave of stronger competitors including Chili’s, Texas Roadhouse, and Olive Garden. Slipping sales, changing consumer preferences, and internal strategic missteps have all contributed to the brand’s decline.
From Industry Giant to Shrinking Footprint
Applebee’s was once the gold standard in casual dining. With thousands of locations across the U.S., it catered to everyone from families looking for a night out to office workers grabbing lunch. However, overexpansion proved to be a double-edged sword. The rapid growth led to market saturation, and by the mid-2010s, many Applebee’s locations were underperforming. The brand began shuttering hundreds of stores—a trend that has continued over the last decade.
As of 2024, Applebee’s has closed more than 300 locations and seen its total unit count fall below several of its main competitors. Parent company Dine Brands Global, which also owns IHOP, has faced investor scrutiny as its stock price plummeted more than 25% over the past year, driven largely by Applebee’s disappointing performance. In contrast, Chili’s and Texas Roadhouse have managed to hold steady or even expand their reach.
Chili’s Surpasses Its Rival
Chili’s Grill & Bar, once viewed as a direct competitor to Applebee’s, has managed to adapt and thrive in ways that Applebee’s hasn’t. Brinker International, Chili’s parent company, made strategic investments in operations, technology, and customer experience. Chili’s focused on simplifying its menu to improve kitchen efficiency, investing in delivery and curbside options, and launching strong value-driven promotions like the “3 for Me” deal, which bundled drinks, appetizers, and entrees at a budget-friendly price.
Moreover, Chili’s marketing has been more cohesive and consistent, with a clear emphasis on bold flavors, value, and fun. Its digital efforts—like the implementation of loyalty programs, app ordering, and contactless payments—have helped it better engage younger and tech-savvy consumers.
The result? Chili’s has consistently outperformed Applebee’s in key metrics like same-store sales and customer satisfaction. While both brands were hit hard by the COVID-19 pandemic, Chili’s bounce-back was quicker and stronger.
Changing Dining Habits and Consumer Preferences
Today’s diners are more demanding and discerning. Consumers are seeking out experiences that offer value, convenience, and authenticity. They’re also more health-conscious and less tolerant of mediocrity. Chains like Texas Roadhouse have built a loyal base by offering high-quality steaks, friendly service, and a lively atmosphere. Olive Garden, under Darden Restaurants, has emphasized consistency, strong branding, and family value with offerings like the “Never Ending Pasta Bowl.”
Applebee’s, by contrast, has struggled to clearly define its place in this evolving market. Once known for its broad menu of burgers, pastas, and bar food, the brand now faces criticism for being too generic. Many consumers feel the experience lacks innovation and authenticity. Attempts to modernize the menu with items like “neighborhood burgers” or new cocktails have had mixed results. The brand is also facing competition from fast-casual chains like Chipotle and Panera, which offer speed, customization, and perceived freshness.
Missteps and Missed Opportunities
Part of Applebee’s decline can be traced to frequent leadership changes and inconsistent strategic direction. Dine Brands has cycled through several CEOs over the last decade, each with a different vision. While some pushed for modernization and rebranding, others leaned into nostalgia or tried to pivot toward a more bar-centric experience.
The result has been a brand that often feels like it’s stuck between identities—trying to attract both millennials and boomers, both dine-in guests and takeout fans, without fully committing to any one group. Initiatives like reintroducing “Dollarita” drink promotions sparked temporary interest, but failed to build lasting loyalty.
Signs of a Possible Turnaround
Still, Applebee’s isn’t giving up. The company is exploring new formats, such as smaller, urban-focused locations and off-premises kitchens designed for delivery and takeout. It’s also experimenting with revamped interior designs and celebrity collaborations, hoping to inject new energy into the brand. Menu innovation remains a focus, with efforts to balance comfort-food classics with lighter, trendier options.
Marketing efforts have also ramped up in recent years. Applebee’s has partnered with major entertainment brands and leaned into social media campaigns aimed at Gen Z. And while results are still inconsistent, these efforts signal a willingness to evolve.
Moreover, Dine Brands has expressed confidence in Applebee’s long-term value, pointing to the strength of the brand’s name recognition and its extensive franchise network. Executives have said the company is working on refining operations, improving guest experience, and focusing more sharply on high-performing markets.
The Road Ahead
For Applebee’s, the path forward will require clear leadership, decisive strategy, and a deep understanding of today’s dining consumer. Unlike fast-food chains, full-service restaurants live and die by guest experience. If Applebee’s can improve service consistency, upgrade its menu, and find a brand voice that resonates with today’s diners, it may yet stage a comeback.
But the clock is ticking. In an industry where consumer loyalty is fleeting and competition is fierce, staying still means falling behind. Chili’s, Texas Roadhouse, and Olive Garden have found their footing. Now it’s Applebee’s turn to figure out whether it can reclaim its former glory—or whether it will be remembered as another once-great brand that failed to adapt.
As one analyst recently put it, “Applebee’s needs more than a new appetizer to fix what’s broken. It needs a reinvention.”