FSR May 2023

APPLEBEE’S COCKTAILS, LIKE THE PERFECT PINEAPPLE MARGARITA (ABOVE), PAIR WITH ITS VALUE ORIENTED BAR AND GRILL MENU OF WINGS, BURGERS, FRIES, SALADS, PASTAS, AND TACOS (RIGHT).

be more sophisticated than other brands domestically here. ey’re actually very similar to many of the franchisees that I’ve worked with internationally,” says Moralejo. “As soon as I took over this position in January of this year, one of the rst things that struck me was just how special that relationship [with franchisees] is. I call it a strategic asset, domestically,” he adds. Moralejo visited three markets in four days during his initial 60 days as new president, spending time with key stakeholders and getting to know both the leadership team and franchise own ers. His immediate goal is to continue building up the franchisor-franchisee relationship, which involves daily chats with operators, checking in with them periodically to gauge how their business is going, and making their needs prior ity number one. “Lots of brands have good brand lead ers, and teams and executives, and lots of brands have really good franchisees, but when they collaborate, when they align and when they're engaged, that's where the magic happens,” Moralejo says. “You see improved products, you see improved operations, [and] you see improved restaurant facilities.” His second priority is to keep sales

momentum trending upwards by attracting new and returning consumers amid in ation, rising consumer credit card debt, lower savings, and other mac roeconomic factors. But o ering great value to custom ers doesn’t just mean o ering low prices, he notes; it also means increasing the entire value experience for guests includ ing a ordable, great-tasting food in a fun environment with best-in-class service. “It's a combination of that total; it's all the elements of the total guest experi ence,” Moralejo says. “And that's where we differentiate ourselves from other brands. … And while you will notice other brands start to put their toe in the cold waters of value, we've been doing it for ve years, and we're going to stick to that playbook.” Triggering a “feel-good” element in guests is an important part of winning on value, he adds, which can come from indulgence or sharing a meal with family and close friends, so Applebee's franchi sees will continue to focus on elevating the total guest experience in addition to o ering compelling value o erings. DEVELOPMENT AND ADDRESSING DEFICIENCIES When asked what impact he hopes to

impart on the brand, Moralejo quickly notes he plans to stay at Applebee’s “for as long as they’ll have me, so 20-plus years if that’s OK,” and he would love the next chapter of Applebee’s to talk about growth. “And when that chapter talks about growth, it's not just sales, but it's also unit count,” he says. “So, bringing the Applebee's promise, eating good in the

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MAY 2023