IHOP is launching a national biscuits menu for the first time ever.
After reducing its menu by a third during the early stages of the COVID-19 outbreak, the Dine Brands chain, primarily known for its pancakes, has been diversifying into new cuisines, including as burritos and savory crepes. The new menu items have mostly been designed to increase takeout orders and diners during lunch and supper hours. In addition, IHOP has brought back some previous classics, such as its Cinn-A-Stack pancakes.
The chain’s menu plan hasn’t been able to counteract customers’ conservative purchasing habits, either. Despite increasing menu prices compared to the same quarter last year, IHOP’s same-store sales increased by just 2.1% in the most recent quarter. Even worse, sister brand Applebee’s reported a 1% loss in same-store sales for the same time period.
Dine Brands’ market worth has decreased to $856 million this year as a result of a 25% decline in its share price.
IHOP’s biscuits menu could increase sales starting on Monday, which would benefit Dine Brands’ stock as well. The restaurant has offered biscuits in some areas, including as the South, but it made the bold decision to add them to menus across the country.
A buttermilk biscuit, a breakfast biscuit sandwich with eggs, bacon, American cheese, pickle chips, and country gravy, a chicken biscuit sandwich with country gravy, and a fresh strawberry and cream biscuit with cheesecake mousse, strawberries, and syrup are all part of the new lineup.
In order to attract consumers who are on a tight budget, the morning biscuit sandwich with a choice of a side will be offered through September 26 for $7.
According to customer research, consumers all around the country would be interested in trying the chain’s biscuits, IHOP Chief Marketing Officer Kieran Donahue told CNBC.
If we hadn’t believed it had a broad appeal, we wouldn’t have included it on our menu, she added.
However, the chain first improved its biscuit recipe. Donahue claims that the outcome is a flaky biscuit with a hint of crunch on top.
Consumer preference for biscuit sandwiches has increased, according to data from Datassential, a food and drink market research company.
Chick-fil-The Southeast-based A’s nationwide expansion has pushed the traditional Southern breakfast item more into the mainstream. Early in 2020, Wendy’s began offering biscuits alongside croissants and English muffins as the foundation for its breakfast sandwiches.
However, there aren’t as many biscuits on menus as there formerly were. According to Datassential, they are present in 11.8% of American restaurants, falling from 14% in 2020. Even Nevertheless, the firm discovered that biscuits are becoming more popular as sides and appetizers despite their decreased availability.
In keeping with this pattern, IHOP created a flexible biscuits menu. The fresh strawberries and cream biscuit, for instance, might be served as a delicious breakfast or dessert.
Donahue added that the franchise made sure the biscuits could be ordered to go. To-go orders account for more than a fifth of IHOP’s total sales.