Applebee's and IHOP closing over 100 restaurants - FOX5 Vegas - KVVU

Applebee's and IHOP closing over 100 restaurants

(AP File Photo) (AP File Photo)

(MEREDITH) -- On Thursday, DineEquity said it would shut down more than 100 Applebee's locations and up to two dozen IHOP restaurants by the end of the year. The parent company blames struggling restaurant finances for the closures. 

"We are investing in the empowerment of our brands by improving overall franchisee financial health, closing underperforming restaurants and enhancing the supply chain," interim CEO Richard Dahl said in a statement. "We believe 2017 will be a transitional year for Applebee's, and we are making the necessary investments for overall long-term brand health and expect to see improvement over the next year."  

Customer satisfaction has dropped almost 4%  in the recent American Customer Satisfaction Index report, which grades the American restaurant industry. The score is based on a number of factors, including service times and food quality. 

Millennials, a major slice of Americans, are cooking more at home and spending less out at national restaurant chains, according to a CBS report. Industry analysts say this has had a major impact as a whole, "we're seeing a shifting tide where consumers also want to have the option of cooking with their own ingredients, which is why meal-kit delivery made so much sense," said Cooper Smith, head of Amazon research at analytics.

Learn more about the closures by visiting the DineEquity website here

For more on the company financial report, click here.

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