Accelerating Expansion and Entering New Markets: The Advantages of Dual-Branded Locations

By: Scott Gladstone | 2,226 Reads | 11 Shares

%3Cp%3EAs+the+franchise+development+landscape+continues+to+evolve%2C+restaurant+companies+are+seeking+new+and+innovative+ways+to+drive+expansion%2C+efficiency%2C+and+profitability+for+their+brands+and+franchisees.+Dine+Brands+saw+an+opportunity+to+address+this+challenge+by+leveraging+two+of+its+iconic+brands+and+creating+a+new%2C+dual-branded+concept.+Earlier+this+year%2C+it+opened+the+first+domestic+Applebee%26rsquo%3Bs%2FIHOP+restaurant+in+Seguin%2C+Texas.%3C%2Fp%3E%0D%0A%3Cp%3EThe+dual-branded+restaurant+allows+both+concepts+to+operate+within+a+single+commercial+space%2C+giving+franchisees+a+unique+competitive+advantage+by+optimizing+resources+and+maximizing+real+estate+efficiencies.+Introducing+a+dual-branded+business+can+be+a+powerful+tool+for+accelerating+expansion+and+entering+new+markets.+Below+are+some+of+the+potential+benefits%2C+from+real+estate+optimization+to+operational+streamlining+and+strategic+market+growth.%3C%2Fp%3E%0D%0A%3Ch2+dir%3D%22ltr%22%3EReal+estate+considerations%3A+Smarter+spaces%2C+larger+gains%3C%2Fh2%3E%0D%0A%3Cp%3EWith+commercial+property+costs+rising+and+prime+locations+becoming+increasingly+scarce%2C+housing+two+brands+in+a+single+space+offers+a+cost-effective+and+efficient+solution+for+many+franchisees.+Shared+utilities%2C+maintenance%2C+and+property+taxes+also+contribute+to+lower+overhead+expenses.%3C%2Fp%3E%0D%0A%3Cp%3EWhen+applied+to+restaurants%2C+a+dual-branded+concept+has+the+benefit+of+maximizing+space+by+allowing+complementary+brands+to+cater+to+different+dayparts.+For+example%2C+IHOP%26rsquo%3Bs+breakfast+traffic+transitions+seamlessly+into+Applebee%26rsquo%3Bs+lunch+and+dinner+rush.+This+efficient+use+of+space+allows+for+flexible+layouts+where+seating+and+kitchen+operations+can+be+adjusted+based+on+demand%2C+ensuring+the+restaurant+can+meet+guest+demands+any+time+of+day.%3C%2Fp%3E%0D%0A%3Ch2+dir%3D%22ltr%22%3EOperational+benefits%3A+Efficiency+through+shared+resources%3C%2Fh2%3E%0D%0A%3Cp%3EBeyond+the+real+estate+advantages%2C+dual-branded+restaurants+also+provide+operational+efficiencies+that+most+multi-unit+franchisees+currently+lack.+A+kitchen+can+be+designed+to+best+utilize+the+space+and+combined+equipment+on+the+line+to+optimize+operations%2C+labor%2C+and+prep+procedures.+By+operating+two+brands+under+the+same+roof%2C+franchisees+can+not+only+leverage+some+of+the+same+back-of-house+equipment%2C+they+can+also+cross-train+staff%2C+share+management%2C+and+maximize+productivity+by+hour+and+headcount%2C+reducing+overhead+costs+and+optimizing+space.%3C%2Fp%3E%0D%0A%3Ch2+dir%3D%22ltr%22%3EStrategic+market+expansion%3A+Amplifying+reach+through+dual+brands%3C%2Fh2%3E%0D%0A%3Cp%3EThe+ability+to+offer+a+dual-branded+concept+gives+franchisors+a+competitive+advantage+when+entering+new+markets.+It+is+also+a+tool+for+attracting+multi-unit%2C+multi-brand+franchisees+who+are+looking+to+diversify+their+investments.%3C%2Fp%3E%0D%0A%3Cp%3EA+dual-branded+concept+provides+franchisees+with+the+opportunity+to+invest+in+complementary+brands+with+the+support+of+their+existing+franchisor%2C+which+can+be+an+attractive+opportunity+for+those+who+are+seeking+to+become+multi-unit+owners.+It+also+offers+existing+franchisees+of+one+brand+entry+into+a+new+brand%2C+easing+the+transition+into+multi-unit+ownership+with+a+familiar+investment.%3C%2Fp%3E%0D%0A%3Cp%3EDual+branding+is+also+a+great+way+to+leverage+existing+brand+recognition+to+attract+new+guests+for+the+complementary+brand.+Guests+who+may+be+loyal+or+familiar+with+one+brand+can+experience+the+other.+Operating+multiple+brands+also+provides+a+gateway+into+non-traditional+venues%2C+like+airports+and+entertainment+venues%2C+where+space+is+at+a+premium+due+to+high+foot+traffic.+By+adapting+to+various+environments%2C+the+concept+opens+the+door+to+previously+untapped+markets.%3C%2Fp%3E%0D%0A%3Ch2+dir%3D%22ltr%22%3ELooking+ahead%3C%2Fh2%3E%0D%0A%3Cp%3EAs+real+estate%2C+operational%2C+and+consumer+dynamics+continue+to+shift%2C+finding+innovative+and+impactful+ways+to+grow+in+both+traditional+and+non-traditional+markets+will+become+a+top+priority+for+restaurant+companies.+For+franchisees%2C+investing+in+a+dual-branded+concept+could+be+the+key+to+staying+competitive%2C+maximizing+profitability%2C+and+unlocking+new+opportunities+in+an+ever-changing+industry.+This+strategic+concept+demonstrates+that+the+collaboration+of+two+established+and+beloved+brands+can+unlock+unparalleled+potential+for+growth.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cem%3E%3Cstrong%3EScott+Gladstone%3C%2Fstrong%3E+is+the+chief+development+officer+and+president+of+international+with+%3Ca+href%3D%22https%3A%2F%2Fwww.dinebrands.com%2Fen%22+target%3D%22_blank%22+rel%3D%22noopener%22%3EDine+Brands+Global%3C%2Fa%3E.%3C%2Fem%3E%3C%2Fp%3E

Published: July 29th, 2025