Applebee’s operates about 1,600 locations in the U.S. and 11 other countries. Systemwide sales increased nearly 5 percent to $4.6 billion in 2022, despite a slight decline in unit count.
Having launched his franchise career with the purchase of eight Applebee’s restaurants in the state of Washington 25 years ago, Greg Flynn admits to his sentimental attachment to the full-service casual dining brand.
That helps explain why the world’s largest restaurant franchisee sounded especially excited to sign a pair of acquisition and development deals with Applebee’s. The deal will bring his company’s unit count in the brand to more than 500.
Flynn Group acquired 25 restaurants in Florida and Georgia from longtime Applebee’s franchisee Doherty Enterprises. Flynn’s company also signed a development agreement to open 26 new Applebee’s over the next seven years in the 23 states and markets where it already operates locations.
“We did nothing but Applebee’s for the better part of our first 12 years, and because of that it’s sort of my first love and really where I cut my teeth,” Flynn said. “It’s where we learned to lay our foundation and where we formed our core team, unit structure, our culture and support systems.”
Doherty Enterprises has been an Applebee’s franchisee for more than 30 years. After selling 25 stores to the Flynn Group, the company still operates 80 Applebee’s restaurants in New York and New Jersey. Flynn Group offered jobs to the team members working in the acquired restaurants, according to a press release announcing the deals.
“I’m very good friends with Ed Doherty at Doherty Enterprises. We go way back,” Flynn said. “The restaurants his group sold to us were performing well. They just wanted to focus more on their New York and New Jersey locations.”
Flynn’s company owns and operates 2,600 Applebee’s, Taco Bell, Panera Bread, Arby’s, Pizza Hut, Wendy’s and Planet Fitness franchise locations. The company is based in San Francisco and was founded by the industry veteran in 1999. Today, Flynn Group generates $4.7 billion in sales and employs more than 75,000 people in 44 states and Australia.
The company changed its name last year from Flynn Restaurant Group after making its first non-restaurant acquisition with the purchase in November of Planet Fitness franchisee Alder Partners. Flynn Properties, another Flynn-run business, owns 121 luxury hotels.
With 450 Applebee’s prior to the recent deals, Flynn Group was already one of the brand’s largest franchisees. Flynn, who said his company is pursuing additional deals with other brands, said he sees growth potential with the 44-year-old restaurant chain, which is owned and franchised by Dine Brands Global.
“2023 was a good year for the brand,” he said. “This year got off to a slightly slow start with some very bad weather in January, but each month, things have improved and we ended the quarter on budget.”
Applebee’s, which ranks No. 24 on the Franchise Times Top 400, operates about 1,600 locations in the U.S. and 11 other countries. Systemwide sales increased nearly 5 percent to $4.6 billion in 2022, despite a slight decline in unit count.
Applebee’s President Tony Moralejo said the deals signed with Flynn Group are part of Applebee’s development strategy to return the brand to net new unit openings. The brand closed about 300 locations over the past six years as it aimed to shed underperforming units.
“Flynn Group’s journey with Applebee’s began 25 years ago, and their leadership team, culture and focus on operational excellence is unparalleled. We’re excited to expand our partnership with them and to bring Applebee’s to more neighborhoods across the U.S.,” Moralejo said in statement.
Flynn believes there is always going to be a large market in the U.S. for sit-down dining that serves alcohol.
“Applebee’s is better positioned than anyone else in the industry to sell,” he said. “The concept continues to really resonate with America, and its franchisees are supported by a huge marketing budget and a talented team.”
Flynn, who put to rest rumors in February he was exploring a sale of his company, didn’t rule out acquiring more Applebee’s. “We have a lot of Applebee’s already,” Flynn said, “but that doesn’t mean we don’t want more,” he said.