Why Is Applebee’s Closing Some Restaurants in Indiana and New York?

**Applebee’s Closes Several Restaurants as Part of Expansion Strategy**

Applebee’s Neighborhood Grill + Bar, a well-known dining establishment in the United States for 46 years, has recently announced the closure of several locations across the country. The casual dining chain, which began its journey in Georgia in 1980, currently operates around 1,600 restaurants as of early 2026. These closures have prompted discussions about their impact and the future direction of the business.

As reported in February 2026, at least four Applebee’s outlets have either closed or are slated to shut down shortly. Among the affected locations are two in Evansville, Indiana, one in Columbia, Missouri, and a fourth planned closure in Glenville, New York, in April. This marks a significant moment for the brand, especially considering that many of these establishments had been fixtures in their communities for decades.

The closures in Evansville occurred at the East Morgan Avenue and Pearl Drive locations, both of which had served the community for over 30 years. Signs at these sites expressed gratitude to patrons for their support over the years. The outlet in Columbia, Missouri, also shared a similar sentiment: “We greatly appreciate our neighbours’ patronage for the past +30 years,” as confirmed by a company spokesperson.

In Glenville, the franchise owner attributed the forthcoming closure to the rising operational costs associated with running the restaurant. These costs encompass not only food and labour but also utilities and fuel, which have seen significant increases in recent years. The National Restaurant Association has estimated that costs in the restaurant industry have surged by approximately 35% from 2020 to 2025.

Despite these restaurant closures, Dine Brands, the parent company of Applebee’s, has sought to reassure stakeholders about the overall health of the chain. John Peyton, president of Applebee’s, remarked on the situation, stating, “Restaurant closures are a normal part of running a mature national system, but they don’t define our trajectory.” He further noted that plans to open more locations than in previous years are underway, demonstrating a commitment to expansion rather than contraction.

Applebee’s has also announced intentions to increase the launch of dual-branded restaurants in collaboration with IHOP. Dine Brands outlined plans to establish at least 50 domestic dual-branded venues in the near future. As of late 2025, the company had nearly 60 such restaurants operating worldwide, showcasing a strategic shift intended to enhance customer experience and drive sales.

Historically, Applebee’s has faced challenges with its number of locations. In 2017, the chain closed approximately 120 restaurants following a significant 7% drop in sales. However, innovations such as the introduction of the popular “Dollarita” cocktail helped to rejuvenate the brand’s appeal and stabilise revenue in the years that followed.

In light of its recent struggles, analysts have speculated that expanding dual-branded concepts may serve as a vital strategy for the viability of the Applebee’s brand as it adapts to changing market dynamics. This model allows for shared operational costs while providing customers with more diverse dining options.

As Applebee’s navigates these challenges, it remains to be seen how the combination of restaurant closures and planned expansions will ultimately shape the future of the brand. While the recent shuttering of several locations may suggest a retracting presence in some areas, the commitment to dual-branding partnerships and new store openings illustrates a proactive strategy aimed at capturing a broader market.

In conclusion, Applebee’s is undergoing a period of transition marked by both closures and new opportunities for growth. As the chain adapts to rising operational costs and a shift in consumer dining preferences, its response will be crucial in determining its long-term success and relevance in the competitive restaurant landscape.