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Is Benton Harbor Applebee’s Safe From Targeted Closing List?

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Nobody ever wants to see their favorite neighborhood bar and grill facing the chopping block. That’s why there were some raised eyebrows, and murmurs of fear when word came down from corporate headquarters at DineEquity that a sizable number of Aplebee’s and IHOP restaurants would be closed permanently as part of a restructuring plan.

Both IHOP and Applebee’s have restaurants in the Benton Harbor market, literally across the street from one another at Pipestone and Mall Drive just off of I-94.

DineEquity, which is based in Glendale, California, revealed plans earlier this month to close up to 135 Applebee’s and as many as two dozen IHOP locations across the nation. When corporate CEO Richard Dahl reported 2nd quarter financial results on August 10th, he also reported plans to close “under-performing restaurants,” and promised to “focus on operations…elevating the guest experience.”

No list was made available at that time of restaurants that were targeted for closure, and while there is still no official list anywhere in the public realm, word is that the Benton Harbor Applebee’s is safe for the time being. Industry colleagues report today that Team Schostak Family Restaurants, which operates the Benton Harbor eatery as well as eight other Southwest Michigan communities, indicate that the closing threat does not encompass any of the Michigan sites under their management.

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Schostak actually has a total of 64 Applebee’s franchise sites around Michigan and all are reportedly spared from the knife at this juncture, according to word from their corporate offices in Livonia. In our immediate region that includes Applebee’s Grill & Bar operations in Battle Creek, Hastings, Kalamazoo, Marshall, Plainwell, Portage, Sturgis and Three Rivers, in addition to the Benton Harbor diner.

The IHOP list of targeted closures also remains undisclosed at this time, so the fate of the Benton Harbor site is still in limbo.

On a national scale, Applebee’s reported a 6.2-percent drop in sales revenues in the second quarter report while IHOP sales declined by 2.6-percent in the same period. Stay tuned.