No data to display.

IHOP opens up to wine and dine, franchises to sell alcohol at selected locations

By Yashasvini on Aug 13, 2021 | 04:33 AM IST

ihop.jpg


Pancakes and wine could be your order when you visit an IHOP the next time. Restaurant chain IHOP will soon be serving alcohol along with its regular food menu.

IHOP is letting its franchises incorporate an alcohol menu devised by the company. Until now, a handful of IHOP franchises had been selling alcohol, but the menu was chosen by them. It was on them to launch the new offerings.

From Bud Light, Blue Moon, and Corona beers, to Barefoot Bubbly Brut, Barefoot Bubbly Chardonnay, and Barefoot Cabernet Sauvignon, IHOP’s alcohol menu has been designed to attract more customers for dinner. Some locations may have local offerings, as well. Hard liquor is not on the menu to avoid making the family restaurant, feel like a bar.

CNN Business reported that IHOP president Jay Johns wasn’t sure whether all locations will end up selling alcohol but they wanted “it to be as broad as possible." Johns believes that out of 1750 IHOP restaurants, nearly 1,000 could serve alcohol.

The company stated that two IHOP locations in New Mexico will offer alcohol to drinking-aged guests, starting this week, while a San Diego outlet will follow through in September. Nearly nine more restaurants will adopt the alcohol menu in markets including New York, Rhode Island, Maryland, and Ohio, by the end of the year, added Johns.

For now, IHOP has to convince its franchises to invest in alcohol, get a liquor license, train staffers to card customers and become familiar with new menu items. Declining sales and nationwide labor shortage, during the pandemic, threaten the promptness of this action. 

Sales at IHOP restaurants open at least a year were much higher in the second quarter compared to the same period last year, but are still lagging behind 2019 second-quarter sales. Johns believes that selling alcohol could ultimately make franchise operators more profitable, as it has higher margins than food items. He also added that server tips could increase if people spent more per meal because they would order drinks.

(With inputs from CNN Business)

Picture Credits: Hungry Forever

Stock View