Scott Gladstone on franchise economics
From Dual-Branded Franchise Strategy with Dine Brands’ Scott Gladstone | The Business Growth Show · · Profit Rich Results // Ford Saeks
“In an environment of rising rents and costs, dual-branded restaurants allow franchisees to leverage fixed costs and labor more efficiently, maximizing their investment and offering consumers a broader spectrum of choices.”
On , Scott Gladstone, Chief Development Officer & President of International at DINE BRANDS GLOBAL INC, spoke about franchise economics during Dual-Branded Franchise Strategy with Dine Brands’ Scott Gladstone | The Business Growth Show on Profit Rich Results // Ford Saeks.
About Scott Gladstone
Scott Gladstone, Chief Development Officer and President of International at Dine Brands Global, has been discussing the company's dual-branded restaurant strategy, which combines Applebee's and IHOP under one roof with a shared kitchen and cross-trained staff. He stated that the company opened its first dual-branded location in Sige, Texas, in February 2025, converting an existing IHOP to add Applebee's. Gladstone described the concept as a way for franchisees to leverage fixed costs and labor more efficiently in an environment of rising rents and costs, and noted that the company prioritized speed to market over perfection for the launch. He also discussed the 2023 acquisition of Fuzzy's Taco Shop, a fast-casual Mexican chain, as a way to scale Dine's shared service platform and drive growth beyond its larger legacy brands. Gladstone has also spoken about the company's approach to technology and automation. He noted that half of Applebee's system can process a full order through an automated agent, and said he sees potential for generative AI applications in back-office tasks like labor scheduling and inventory ordering. He described the company's strategy as returning to "first principles" to identify which innovations will have the most impact, given limited resources for testing. Regarding virtual brands, Gladstone said they remain a significant opportunity for IHOP, allowing the company to leverage existing kitchen capacity to offer different cuisines and reach new consumers, though he noted the segment requires continuous testing and adaptation.