Wealthier people eating more at Applebee’s and IHOP, according to company

AP Photo/Tom Gannam

As consumers tighten their wallets amid increasing inflation rates, a surprising find by the parent company of two popular affordably-priced restaurant chains in the U.S. has revealed that the wallets of those making even more money might be tightening as well.

That’s because, according to Dine Brands, sales during three months this year grew by some 6% to 8% among customers in households making $75,000 a year.

While it’s unclear how Dine Brands CEO John Peyton got that data when he presented it recently on an analyst call for the company’s quarterly results, he suggested that the jump in sales is because “guests that often dine at more expensive restaurants are finding Applebee’s and IHOP because of their well-known value position,” he said.

As CNN reported, Applebee’s and IHOP both saw sales drop among customers in households making under $50,000 per year. Sales overall for both companies have seen small increases for stores open at least a year.

Both restaurants have increased menu prices this year as the U.S. deals with staffing shortages in the industry coupled with increased inflation.

“At times like these when economics are tough for our guests, our brands have particular expertise,” Peyton said.

By Douglas Jones, Scripps National

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