Ever wonder who the hell owns Applebee's? Or better yet... all those IHOPs? Both restaurant chains are actually owned by Dine Brands Global.
Imagine combining these two happy hours... "I'll have three of your Long Island Iced Teas with the flapjacks meal please."
Dine Brands ($DIN) appointed a new CEO, John Peyton, in January 2021.
Peyton was previously the CEO of Realogy, the company behind Century 21 and Coldwell. But he's packed his real estate knowledge away for now and will blast off into the food services industry.
Peyton is making an immediate impact by introducing Cosmic Wings at Applebee's.
The Cosmic Wings brand inked a partnership with Frito Lay to introduce Cheetos wings. Customers can now get their Cosmic Wings coated in Cheetos sauce, or for you less riskier people, added on the side.
These Flamin’ Hot Cheetos wings are for delivery-only and are offered exclusively through Uber Eats.
This delivery-only food concept is known as a Virtual Brand where delivery only items, like Cosmic Wings, are offered out of existing kitchens such as Applebee's.
Virtual Brands provide restaurants with a low cost way to boost sales using already owned spaces. Virtual Brands can also help these restaurants connect with different types of customer demographics.
It's estimated that Virtual Brands and Ghost Kitchens, which are also delivery-only, could account for $1 trillion in sales by 2030.
Chilis ($EAT), Red Robin ($RRGB), and Outback ($BLMN) are a few of the other groups launching Virtual Brands. The Pandemic somewhat forced this new strategic product offering.
The impact of restaurant closings has been felt throughout the entire food services industry. Dine Brands ($DIN) was hit hard with Q4 revenue dropping 13.8% compared to a year ago.
However, the outlook is bright and the technicals are strong. Vaccinations and rollbacks on Government mandates could be key to sparking this industry back to life.
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