DineEquity Inc., the US-based founder and operator of IHOP and Applebee’s restaurant, and local franchisee Global Restaurant Concepts Inc. (GRCI) has forged partnership to bring the dining brands in the Philippines.
A master franchise agreement was by DineEquity President for International Division Daniel del Olmo and GRCI President and Chief Executive Officer Archie Rodriguez on Monday.
The deal gave GRCI the rights to open 20 to 25 IHOP and three Applebee’s stores in the Philippines over the next three to four years.
GRCI is the franchise holder of Applebee’s and IHOP in Southeast Asian, with restaurants in Guam, Indonesia and Hawaii.
Now in talks with potential joint venture partners, the company is also looking at putting up stores in Singapore, Thailand, Malaysia and Vietnam.
Rodriguez said that despite the agreement he would like to expand “up to 50 to 70 units in the next 7 to 8 years, depending on the market.”
For his part, Del Olmo said the Philippines is a bright spot to grow its brands because of the prevailing socio-economic climate, which they find as sustainable and as one of the desirable markets in the world. He noted the young and emerging market, as well as the Filipinos’ desire for US brands.
GRCI is set to spend an estimated P272 million to P340 million to establish 20 to 25 IHOP stores, while budget for the Applebee’s stores is about P68.04 million.
It takes $500,000 (P22.68 million) to open an Applebee’s restaurant, while IHOP restaurants cost $300,000 (P13.6 million) per unit.
Rodriguez told reporters it will open a 200-square meter (sqm) Applebee’s restaurant in Bonifacio Global City (BGC) in July, with the second 310-sqm standalone Applebee’s to open in Eastwood before the year ends.
GRCI is a Filipino owned franchisee of international restaurant brands, mostly in Southeast Asia. Apart from Applebee’s and IHOP, GRCI also owns the Southeast Asian franchise of California Pizza Kitchen, P.F. Chang’s, Morelli’s Gelato, Mad for Garlic, Gyu-Kaku, and Ramen Iroha.
New York-listed DineEquity is a California-based operator of full-service restaurants that mainly franchises its brands IHOP and Applebee’s Neighborhood Grill & Bar to the international market.