Applebee's has permanently closed another one of its locations, this time in Antioch, California, inland from Berkeley. This closure marks the end of over 25 years of service to the local community. The shutdown is part of a larger plan by the chain to close several of its restaurants across the country.
Applebee's Plans Major Closures
Tony Moralejo, President of Applebee's, revealed plans last year to shut down up to 35 locations. This move would leave the company around 1,500 stores across the United States by the end of 2023.
One affected location is the Applebee's at 2737 Hillcrest Ave. in Antioch, which served its last customers on Sunday, February 25. The closure is part of a larger effort to streamline operations and focus on a broader business strategy.
In a statement, Applebee expressed gratitude to the Antioch community: "As part of a broader business strategy, we have decided to permanently close our Applebee's of Antioch location effective end of service on Sunday, February 25. We have greatly appreciated the opportunity to serve the community over the years."
Applebee's expressed deep appreciation for its employees' commitment and hard work amid recent closures. "We appreciate the hard work, loyalty, and dedication of every one of our staff and wish them the best in their future endeavors," the company stated.
Employees affected by the closure can move to other Applebee locations in the region, ensuring they continue to have employment opportunities.
Customers loyal to the now-closed restaurant are encouraged to visit other nearby Applebee's, keeping the community connection alive.
Also Read: Dunkin' Struggles to Meet Demand, Leaving Customers Disappointed
This year marks the eighth consecutive year that Applebee's has had to close some of its locations. Since 2017, the chain has shut down approximately 300 stores.
Moralejo explained that these closures are partly due to an aggressive expansion strategy two decades ago. "Keep in mind this is a function of opening many restaurants 20 years ago," Moralejo commented during an earnings call last fall.
Rethinking Locations Post-COVID
John Peyton, CEO of Applebee's, shared insights with Restaurant Business Online about the changing dynamics of mall traffic since the COVID-19 pandemic. "Think about how certain malls no longer have the traffic they did before COVID," Peyton remarked, pointing out the strategic nature of recent store closures by the brand.
Peyton emphasized that the closures were part of a strategic realignment rather than a decline in customer interest. The company is actively collaborating with franchise owners to close locations in less profitable areas and open new restaurants in commercial zones with higher potential returns.
This strategy has already shown promising results. Applebee's new locations have generated an impressive $4 million per store, outperforming the brand's average revenue of $3 million per location.
The closure of the Applebee's in Antioch is part of a broader trend of business shutdowns in the area. Notably, Barnes & Noble also announced the closure of its Antioch store after 20 years, with plans to open a new branch in Brentwood. Additionally, Kelly-Moore Paints revealed plans last month to close all its stores nationwide, including its local outlet.
KRON4 News reports that the building space previously occupied by Applebee remains unoccupied. Despite the closure, city officials have not been approached with any inquiries regarding potential new tenants for the storefront.
Related Article: Outback Steakhouse Closes 30-Year-Old Restaurant, Owner Cites Losses and Future Closures
