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InternationalFranchising
Since 1958, the IHOP® family restaurant chain
has served our world famous pancakes and
a wide variety of breakfast, lunch and dinner
items that are loved by people of all ages
— offering an affordable, everyday dining
experience with warm and friendly service.
TABLE of CONTENTS
4 A MESSAGE FROM OUR PRESIDENT, INTERNATIONAL
5 IHOP AT A GLANCE
6 SIGNATURE DISHES
10 WHO WE ARE
14 RESTAURANT FORMATS AVAILABLE
15 BRANDATORIES
16 RESTAURANT PHOTOGRAPHS
22 COMPANY GROWTH
24 KEY DEMOGRAPHICS
25 GLOBAL CITIZENSHIP
26 OUR IDEAL FRANCHISE PARTNER
27 INTERNATIONAL DEVELOPMENT DETAILS
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people like you, and our world-class team of professionals leading our international expansion. Because of the expertise and track record of our team, and our category leading brands, we are fortunate to receive inquiries from the very best operators interested in the opportunities that exist in key markets throughout the world.
Our dedicated international leadership team includes individuals from thirteen different countries with fluency in 11 different languages, and extensive international experience in marketing, finance, development, culinary innovation and operations. Additionally, they UNDERSTAND international franchising and international franchisees, a valuable asset in growing YOUR business.
Welcome, and congratulations
on your interest in becoming a
member of the IHOP family, a group
that includes the finest franchisees in
the restaurant industry.
IHOP, which has been delighting guests for more than 58 years, is, along with Applebee’s, part of DineEquity. As one of the world’s largest full-service restaurant companies and a 99% franchise-owned system, we have a unique understanding of what it takes to succeed in a competitive marketplace—anywhere in the world—and we take our obligation to our franchisees and our iconic brands seriously.
As part of that obligation and commitment to the brand and our partners, we consider it a great compliment when successful, smart business owners like you express a desire to be a part of this exclusive group.
The iconic nature of the IHOP brand is built on proven success, driven by a menu of craveable, identifiable dishes, superior service and a one-of-a-kind dining experience. As the leading family dining brand in the United States, we are very excited to bring IHOP to the world through partnerships with
Julia A. Stewart, Chairman and Chief Executive Officer, DineEquity
I INVITE YOU TO EXPLORE THE WEBSITE, AND TO LEARN MORE ABOUT IHOP AND DINEEQUITY, WHICH IS TRADED ON THE NEW YORK STOCK EXCHANGE UNDER THE SYMBOL "DIN."
With more than 1,600 IHOP and approximately 2,000 Applebee's locations worldwide, we’re delighted you are interested in learning more about the opportunity to become a long-term partner to help us grow those numbers.
DANIEL Daniel del Olmo, President, International, DineEquity
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WHEN AND WHERE WAS IHOP FOUNDED?The first IHOP opened July 7, 1958 in Toluca Lake, California. IHOP was founded by brothers Al and Jerry Lapin. We have been cooking up pancakes for over 58 years.
DOES IHOP FRANCHISE ITS RESTAURANTS?Yes, 99 percent of our restaurants are franchised. We believe that equity-involved owner/operators provide a better dining experience for our guests.
CAN I BUY STOCK IN IHOP?No, but you can buy stock in IHOP's parent company, DineEquity, Inc. International House of Pancakes, LLC is a subsidary of DineEquity, Inc., which is publicly traded on the New York Stock Exchange under the symbol “DIN.” You can find more information on our Investor Information page.
www.ihopinternational.com
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cheeseburgers, classic sandwiches, and hearty dinners like our ever-popular Sirloin Steak Tips Entree. For our younger guests, we have a playful Kids menu with cherished favorites like our Funny Face Pancake and our Create-A-Face Pancake.
IHOP serves many varieties of pancakes including Buttermilk, Chocolate Chip, Harvest Grain 'N Nut®, New York Cheesecake and its famous fruit-topped pancakes. Other signature breakfasts include Rooty Tooty Fresh 'N Fruity®, our premium Colorado Omelette, and our innovative, one-of-a-kind Criss-CroissantsTM. Lunch and dinner specialities include juicy
Signature Dishes
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BERRIES AND CREAM BELGIAN WAFFLE
DOUBLE BLUEBERRY PANCAKES
STRAWBERRY BANANA FRENCH TOAST
SWISS MOCHA COFFEE
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BIG STEAK OMELETTEBLUEBERRY AND WATERMELON SPLASHERS
BERRY BERRY CREPES
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CHICKEN FAJITA OMELETTE CITRUS CHICKEN PECAN SALAD
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IHOP began in 1958 (July 7th) as a single restaurant in Toluca Lake, a suburb of Los Angeles in the San Fernando Valley. Today, there are over 1,700 IHOP restaurants in all fifty states, and beyond. The first IHOP outside of the United States opened in 1969 in Canada, making it truly an “International” House of Pancakes.
At least two items have been on the menu since it was originally created over 58 years ago: our famous buttermilk pancakes and our chocolate chip pancakes. Some of our famous signature pancake variations through the years include:
Fun Facts
NEW YORK CHEESECAKE PANCAKES
PINEAPPLE UPSIDE DOWN PANCAKES
RED VELVET PANCAKES
JELLY DONUT PANCAKES
TIRAMISU PANCAKES
CARROT CAKE PANCAKES
PECAN PIE PANCAKES
EGGNOG PANCAKES
GINGERBREAD PANCAKES
PUMPKIN PRALINE PANCAKES
WHITE CHOCOLATE CHIP MINT PANCAKES
BANANA GRAHAM PANCAKES
32 million pounds of bacon, ham and
sausage accompany IHOP’s signature
breakfasts each year
IHOP serves more than 700 million pancakes
per year
More than 100 million cups of coffee are served each year
IHOP uses 14 million gallons of orange juice
per year
Each year, our pancakes get topped with
more than 1.5 million gallons of syrup.
THROUGH IT ALL, OUR BEST SELLING MENU ITEM IS STILL OUR CLASSIC BUTTERMILK PANCAKES.
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FRESHFresh eggs, fresh ingredients, fresh coffee. Get a made-from-scratch meal that always hits the spot.
TASTYGot a stack? Pour on the flavor with four syrup options, right at your table and ready to go.
COMFORTABLEBe yourself and come as you are—just out of bed, right off the field, or after a night out.
RELAXEDWhat’s the rush? Catch up over a fresh cup of coffee. Or two. Or as many as you want. Our "Never Empty Coffee Pot®" is as famous as our pancakes.
SPECIALLaughing. Sharing. Enjoying. Memories are made at the breakfast table—especially at IHOP.
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IHOP.COM/INTERNATIONAL
UPCOMING MARKET ENTRIES
USAIHOP was first founded in California in 1958.Today, there are over 1,600 locations across all states.
• India (2016)• Thailand (2017)
Soon-to-open markets
Existing markets
CanadaEntered market in 1969
PanamaEntered market in 2016
MexicoEntered market in 2007
Middle EastEntered region in 2012Locations across UAE, Kuwait, Saudi Arabia, Bahrain, Qatar
Puerto RicoEntered market in 2009 Philippines
Entered market in 2013
GuatemalaEntered market in 2011 Guam
Entered market in 2015
WHERE are WE?
as of June 201612
1958
1961
1985
1969
1973
Founders Al and Jerry Lapin and early investors Al and Trudy Kallis, open the first International House of Pancakes in the Los Angeles suburb of Toluca Lake, California.
Company is publicly traded under the name International House of Pancakes.
The Rooty Tooty Fresh ‘N Fruity® is introduced, and guests across North America have fun pronouncing the one-of-a-kind breakfast.
The first International House of Pancakes is opened in the Vancouver, British Columbia suburb of New Westminster. Entering Canada makes us a truly international brand!
A marketing program introduces the acronym
“IHOP” for the first time.
1993
1991
2013
2007
2012
2008
2016and beyond...
Average sales per IHOP restaurant exceed $1 million.
IHOP moves its Restaurant Support Center to Glendale, California.
The Philippine capital of Manila becomes the home of IHOP's first restaurant in Asia!
IHOP continues its international expansion - the first IHOP in Mexico is opened in the city of Monterrey, Nuevo León.
IHOP opens its first restaurant in Dubai, UAE, bringing our world-famous pancakes to an entirely new continent!
50 year anniversary with over 1,400 locations coast to coast.
IHOP to enter India in 2016 and Thailand in 2017.
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2014
1992500th IHOP restaurant opens.
Where will you take IHOP next?
--------------- --------------- --------------- --------------- ---------------
120 sqm
51 seats
0.5 person/m²
85%
15%
---
---
250 sqm
100 seats
0.66 person/m²
60%
34%
6%
75 sqm
350 sqm
188 seats
0.78 person/m²
68%
26%
6%
100 sqm
420 sqm
189 seats
0.45 person/m²
71%
22%
7%
100 sqm**
450 sqm
216 seats
0.72 person/m²
67%
26%
7%
100 sqm**
50 sqm
---
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---
100%
---
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Total area
Occupancy*
Ratio
Front of House
Back of House
Restroom
Terrace
Formats Available
S TYPOLOGYKEY FEATURES This is our small-format design. Its footprint is perfect for locations with space limitations like airports, shopping malls, and universities. L TYPOLOGY KEY FEATURES This is our stand-alone design. Its larger footprint is perfect for street-side locations, and it offers a larger dining area with many seating configurations.
S Typology L Typology
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LOGOThis is our most famous icon and it is placed visibly on the façade of our restaurants.
TAGLINE"Spreading Happiness Since 1958" is both our tagline and a key reason to love IHOP.
MAIN ENTRANCEAdjacent to the new IHOP logo
WELCOME DESKWe want to put a smile on guests’ faces from the moment they walk in our restaurant. The welcome desk is our first chance to do that.
ICONIC HERITAGE BOOTHSThe booths have always been considered the preferred seating option by our guests. These vintage booths are inspired by the original IHOP design.
CHAIRSDifferent styles of chairs, in light and bright colors, add to the California Heritage aesthetic.
Ownable and unique elements that differentiate our Brand.
Brandatories DECORATIVE PENDANT LIGHTSOur pendant lights are easy to update and complement our latest restaurant design.
COMMUNITY TABLEThe goal of the brand is to be all-inclusive. In order to target groups such as millennials, we need to offer them appealing seating options. The community table is a place to enjoy our delicious meals with friends.
SURPRISE & DELIGHTIn unexpected places, like on a receipt, we show happy and positive quotes which connect to our brand image.
PANCAKE WALLThis is a fun, interactive element which can prove fun for both kids and the young-at-heart.
HERITAGE MURALThis heritage mural depicts our roots and shows the pancake man smiling and flipping pancakes along with imagery of IHOP restaurants, signage, families, and children from the 60’s.
FOOTPRINTSThese elements display quotes about our brand heritage and are permanently stencilled into the cement.
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DUBAI, UAE16
MANILA, PHILIPPINES17
CHIHUAHUA, MEXICO18
CHIHUAHUA, MEXICO19 19
SMALL-FORMAT DESIGN20
SMALL-FORMAT DESIGN21
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RESTAURANTSOPENINGS
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SYSTEM-WIDE DOMESTIC AND INTERNATIONAL RETAIL SALES
System-wide Growth
1999 903 restaurants, $1.1 billion sales
2000 968 restaurants, $1.2 billion sales
2001 1,017 restaurants, $1.3 billion sales
2002 1,103 restaurants, $1.4 billion sales
2003 1,165 restaurants, $1.7 billion sales
2004 1,186 restaurants, $1.9 billion sales
2005 1,242 restaurants, $2.0 billion sales
2006 1,302 restaurants, $2.1 billion sales
2007 1,344 restaurants, $2.3 billion sales
2008 1,396 restaurants, $2.4 billion sales
2009 1,456 restaurants, $2.5 billion sales
2010 1,504 restaurants, $2.6 billion sales
2011 1,550 restaurants, $2.7 billion sales
2012 1,581 restaurants, $2.7 billion sales
2013 1,620 restaurants, $2.8 billion sales
2014 1,650 restaurants, $3.0 billion sales
2015 1,683 restaurants, $3.2 billion sales
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Key DemographicsPRIMARY AUDIENCE:We focus on family and friends who want to socialize, spend time with each other in a lively and safe atmosphere that is family-friendly. They have an appetite for trying new foods.
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Global Citizenship
of Canada’s armed forces. And on a global level, IHOP’s famous National Pancake Day, when IHOP restaurants use their most celebrated menu item—buttermilk pancakes—to motivate giving. This giving has resulted in over $24 million dollars raised for children’s health causes. In the past few years, our international franchise partners in Canada, Mexico, Guam and the Philippines have embraced National Pancake Day as a way to raise funds for similar causes in their countries.
At IHOP, we believe that while we are an international brand, we are a local business. We consider it a privilege to serve the communities in which we are located and are dedicated to being an active and involved member of those communities. Our franchise partners are very involved in activities, both local and on a national level that help improve the lives of their guests and their neighbors. For example, on Remembrance Day, our IHOP locations in Canada sell memorial poppies to benefit the members
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We prefer franchisees who have multi-unit experience with restaurants, as they tend to be able to develop better and faster. Experience in real estate development and supply chain is particularly important. We typically require, at a minimum, 3 restaurants over 3 years; this requires a minimum of USD $1MM in cash or liquid assets, plus substantial net worth, typically USD $1MM per restaurant.
In addition to a standard application form, we will require completion of a professional level business plan. This helps us understand the overall opportunity, the capability of the franchisee, and the overall stability of the venture. We are committed to successful, long term commercial relationships and the best basis for this relationship is a thoughtful and profitable plan.
OUR FRANCHISE QUALIFICATIONS
Is committed to a long-term franchise relationship built on trust and respect
Knows how to build a brand
Understands that accessible pricing and value are core components of family dining Is highly capable, particularly in critical areas like supply chain, quality assurance, real estate development, and marketing
Has or will have infrastructure dedicated to the development of our brand
Has material liquidity and net worth, with access to capital
Has a track record of developing multi-unit restaurant systems
Our Ideal Franchise Partner
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Franchise inquiry/contact
Application form
Exploratory discussion with DineEquity
Non-disclosure agreement
Term sheet
Market visit + business plan
Franchisor due diligence/background checks
Franchisee visits our Restaurant Support Center in
Los Angeles, California
Contract execution
Training/open
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Overview of Available Services
SITE SELECTION ARCHITECTURE AND DESIGN RESTAURANT OPERATIONS
TRAINING
FOOD INNOVATION
SUPPLY CHAIN
MARKETING RESEARCH AND DEVELOPMENT
OPENING
ONGOING ASSISTANCE
CORPORATE SUPPORT
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FOR MORE INFORMATION ON BECOMING A FRANCHISEE, PLEASE VISIT US AT WWW.IHOPINTERNATIONAL.COM
OR CONTACT US:
International Development
We would love to hear from you!
DAN LECOCQExecutive Director International Development
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