IHOP Introduces Nationwide Biscuits Menu Amid Sales Slowdown Battle.
IHOP, renowned for its pancakes, is venturing into new territory by launching its nationwide biscuits menu. The move comes as the Dine Brands chain battles declining sales and aims to diversify its offerings beyond its staple breakfast items.
During the early stages of the Covid-19 pandemic, IHOP streamlined its menu by removing a third of its items. Since then, the chain has expanded its repertoire to include burritos and savory crepes.
These additions have primarily focused on attracting customers during lunch and dinner hours and boosting takeout orders. IHOP has also reintroduced some fan favorites, such as the Cinn-A-Stack pancakes.
Despite these efforts, IHOP’s menu revamp has struggled to counter the cautious spending behavior of consumers.
In the most recent quarter, IHOP’s same-store sales saw only a modest 2.1% growth, even though menu prices were higher than the previous year. Applebee’s sister brand faced an even more significant challenge, with a 1% decline in same-store sales for the same period.
These challenges have taken a toll on Dine Brands’ stock performance, which has experienced a 25% drop in value over the year, resulting in a market value of $856 million.
IHOP hopes to boost its sales and stock value with the nationwide rollout of its biscuits menu. While biscuits have been available in select regions like the South, IHOP has decided to introduce them to menus nationwide.
The expanded biscuits lineup features options like the classic buttermilk biscuit, a breakfast biscuit sandwich with bacon, American cheese, cheese sauce, and eggs, a chicken biscuit sandwich with pickle chips and country gravy, and a strawberries and cream biscuit filled with cheesecake mousse, strawberries, and syrup.
To appeal to budget-conscious consumers, the breakfast biscuit sandwich, accompanied by a choice of side, will be offered until September 26 for $7.
IHOP’s Chief Marketing Officer, Kieran Donahue, shared that extensive consumer research indicated a strong interest in the chain’s biscuits nationwide. She emphasized that IHOP wouldn’t have added the item to the menu if it didn’t have broad appeal.
Before launching the nationwide biscuits menu, IHOP upgraded its biscuit recipe to ensure a flaky texture with a hint of crunch.
The popularity of biscuit sandwiches has been on the rise among consumers, as indicated by data from Datassential, a food and beverage market research firm.
Chains like Chick-fil-A, with its expansion outside its traditional Southeastern stronghold, have propelled the Southern breakfast favorite into mainstream consciousness.
Wendy’s also introduced biscuits as a base for breakfast sandwiches alongside croissants and English muffins when it rolled out its national breakfast menu in 2020.
However, despite this resurgence, biscuits are less prevalent on menus than they once were. According to Datassential, biscuits are featured in only 11.8% of U.S. restaurants, down from 14% in 2020. Nevertheless, biscuits are gaining traction as sides and appetizers.
IHOP considered this trend when designing its biscuits menu, aiming for versatility. For instance, strawberries and cream biscuits can be a sweet breakfast or dessert.
Donahue also noted that IHOP ensured the biscuits were well-suited for takeout orders, accounting for more than 20% of the chain’s sales.
In conclusion, IHOP’s decision to introduce its biscuits menu nationwide marks a strategic move to reinvigorate sales and entice customers in a challenging market. The chain’s efforts to diversify its offerings while catering to evolving consumer preferences reflect its determination to adapt and thrive in the ever-changing restaurant landscape.
