57-unit Applebee’s franchisee files Chapter 11 bankruptcy
With the overall restaurant industry struggling, it's challenging to pinpoint why one brand thrives while another struggles.
Chili's, for example, has been a rousing success by leaning into value. This comes at a time when that's the right message for consumers, and as rival chains with similar menus have not fared as well.
Dine Brand Global CEO John Peyton shared what he sees consumers looking for during his company's fourth-quarter earnings call.
"The way I would characterize the consumer broadly for 2025 is that they were looking for both the value and the vibe. And by value, we mean, obviously, the price of the item, but also the taste, the quality, an abundant serving and most importantly, the vibe, which is a really good service. And we see that trend continuing to '26," he shared.
Dine Brands Global operates IHOP and Applebee's, and both have struggled.
Applebee’s year-over-year comparable domestic same-restaurant sales decreased 0.4% for the fourth quarter of 2025, while IHOP's fell by 0.3%, according to the company's Q4 earnings release.
Now, as Peyton works to turn both brands around, a key Applebee's franchise operator has filed for Chapter 11 bankruptcy.
Neighborhood Restaurant Partners is a major Applebee's operator
Neighborhood Restaurant Partners operates Applebee’s in Florida, Georgia, and Alabama. The restaurant group shows 57 restaurants across the three states on its website's location page.
The restaurant group was created as a subsidiary of Argonne Capital Group, a private investment firm based in Atlanta. It's a sister company to Summit Restaurant Group, LLC, the largest IHOP franchisee in the country with 254 restaurants, and franchisee of 48 Applebee's restaurants in Atlanta and San Antonio, according to FSR Magazine.
Argonne Capital and Summit Restaurant Group are not part of the bankruptcy filing.
Neighborhood Restaurant Partners files Chapter 11 bankruptcy
The Neighborhood Restaurant Group filing includes three separate entities:
- Neighborhood Restaurants Partners Florida Two, LLC, Case #: 26-53948-sms (PacerMonitor)
- Neighborhood Restaurant Partners Florida, LLC, Case #: 26-53946-sms (PacerMonitor)
- NRPF Group Two, LLC, Case #: 26-53945-sms (PacerMonitor)
All three cases were filed in Georgia Northern Bankruptcy Court on March 24.
Some details of the case have been reported by RK Consulting.
- Assets: $0-$50,000
- Liabilities: $10 million to $50 million
- Creditors: 1-49
- Debtor's Counsel: Scroggins, Williamson & Ray, P.C.
Like many restaurant operators, the company is likely weighed down by lease liabilities and debt tied to its store base. Specific creditors and debt ranges have not yet been released publicly.
Dine Global Brands own Applebee's, but is not part of the Chapter 11 bankruptcy filing. In some cases, when a franchise operator files for bankruptcy, the franchise owner ends up taking over or refranchising certain locations.
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Applebee's has been struggling
In 2025, a combined 110 Applebee’s and IHOP locations closed, including 13 franchise-owned units in the fourth quarter. The company expects to close around five to 15 Applebee’s restaurants in 2026. However, the dual-branded locations will be used to offset the shutdown of underperforming units, according to TheStreet's Fernanda Tronco.
The chain, however, has been opening dual-concept Applebee's/IHOP locations.
"Dual brands are proven to be an effective, capital-efficient way to expand our footprint and introduce our brand into new markets," Peyton shared during the earnings call.
The company is in the early days of the launching dual-branded locations.
"The Pasadena, Calif., company began testing the concept about two years ago and has since opened roughly 20 international locations. It expects around 30 dual-branded restaurants to be open or under construction in the U.S. by year-end, with at least 50 more slated for 2026," according to The Wall Street Journal.
Peyton shared that these locations produce more sales than traditional IHOP and Applebee's restaurants.
"These restaurants continue to outperform single brand locations, delivering approximately 1.5 to 2.5x higher revenue. We continue to see evidence that the dual brand concept is highly complementary with balanced performance by both brands across all 4 dayparts," he said.
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