Applebee’s Closing Select Locations in 2026 as Costs Rise

Your neighborhood Applebee’s might not be there the next time you drive by. The casual dining chain has started closing select locations in 2026, with several restaurants already shut down across multiple states as part of a broader shift in strategy.

Reports confirm closures in Indiana, Missouri, and New York, including long-running locations that had served communities for decades. In Evansville, Indiana, two restaurants closed after nearly 30 years, with signs thanking customers for their loyalty.

While the number of closures remains small compared to the chain’s roughly 1,500 global locations, the changes still signal a shift for a brand many people have known for years.

What’s Driving the Closures

Rising costs sit at the center of the decision. Restaurant operators across the country are dealing with higher prices for food, labor, utilities, and rent. Over the past five years, both food and labor costs have increased by about 35 percent, according to the National Restaurant Association.

Individual franchise owners feel that pressure directly. In Glenville, New York, a local owner said rising food, fuel, and utility costs made it difficult to keep the restaurant operating.

Applebee’s leadership has also pointed out that closures are part of running a large national chain. Speaking to USA TODAY, company president John Peyton said these decisions are a “normal part of running a mature national system,” even as the company continues to grow.

A Bigger Strategy Behind the Moves

The closures do not tell the whole story. Applebee’s parent company, Dine Brands Global, is investing heavily in a new concept that combines Applebee’s and IHOP under one roof. These dual-branded locations aim to serve customers throughout the day and increase overall traffic.

CEO John Payton said these combined restaurants generate 1.5 to 2.5 times more revenue than traditional single-brand locations, making them a key part of the company’s future plans.

The company expects to open at least 50 new dual-branded locations in 2026, while closing a smaller number of underperforming stores. In many cases, these new locations will replace older standalone restaurants rather than reduce the overall footprint.

What It Means for Customers and Communities

For customers, the changes may feel personal. Many of the closing locations have been part of their communities for years, serving as go-to spots for casual meals, celebrations, and everyday outings.

At the same time, the company continues to expand in other ways. Applebee’s plans to open more restaurants overall, even as it closes select locations, signaling a shift rather than a full retreat from the market.

The shift reflects a larger trend across the restaurant industry. As costs continue to rise and customer habits evolve, many well-known brands are rethinking how they operate, where they invest, and what kind of experience they offer. Some locations will adapt with new formats and updated concepts, while others may not keep up with changing expectations. For diners, it raises a broader question that goes beyond one chain. Will your local favorite evolve with the times, or slowly fade as the industry moves in a different direction?