This post is part of my series featuring established companies and the smaller, more aggressive or innovative rivals that may eventually succeed them.
Applebee's is the largest casual dining restaurant chain in the United States, with nearly 2,000 units spread out over 49 states. Applebee's changed its formal name back in 1986 to Applebee's Neighborhood Bar and Grill to give it a local appeal. In November 2007, International House of Pancakes -- IHOP -- now formally known as DineEquity, (NYSE: DIN) bought out Applebee's for $2.1 billion. It's hard to imagine Applebee's and IHOP as DineEquity!
The casual dining sector is embracing a newer player with aspirations of a national roll out. That player is BJ's Restaurant and Brewery (NASDAQ: BJRI) based in Huntington Beach, California. BJ's offers an on-site brewery with its own beer recipes or a trusted third party's recipe.The chain serves gourmet salads, steaks, chops, fish, poultry and several other popular dishes. It also makes superb deep-dish pizza for both in-house dining and carry out.
BJ's has 72 units in the chain spread over 13 states with enormous room to grow. Being a California-based company, BJ's stronghold is California, but the concept has become popular in key restaurant markets like Florida and Arizona. The casual nature of the chain has an appeal in many large markets not yet penetrated. BJ's has yet to open a unit in New York, Pennsylvania, Illinois, Georgia or Tennessee.
BJ's could 10-fold the concept over the next decade and still only be half the size of Applebee's. The company has not offered franchise opportunities as all units are company owned. The franchising of BJ's could accelerate the growth of the concept very quickly, as it did with Applebee's in the 1980s and 1990s.
BJ's is known for its quality menu at affordable prices and beer lovers enjoy the local brewery choices. As DineEquity attempts to redefine the Applebee's concept, the opportunity for BJ's is to forge itself as the better choice in markets where they compete directly. Applebee's has had a 28-year run, it is time for a new and exciting player -- BJ's Restaurant and Brewery.
I don't know about you, but I am getting hungry....
Georges Yared is the editor of YaredsGameChangers.com and author of "How to Spot the Next Google."











Reader Comments (Page 1 of 4)
6-27-2008 @ 9:38AM
Marge said...
We have dropped Applebys from our list of good food since they no longer have a menue that suits out tastes.
6-27-2008 @ 10:03AM
Jay said...
I still love Applebees!!!
6-27-2008 @ 10:20AM
mamamanntmj said...
I enjoy Applebees but I have also eaten at B Js and they have a great menu that is also family friendly in a neighborly yet ste abover kind of way
6-27-2008 @ 10:26AM
Parissa said...
I've been ill twice after eating at an Applebee's ~ tainted chicken both times (in the same restaurant). It was several years before I went back with a friend, but my negative opinion has not changed: their music is too loud (but they literally refuse to turn it down); they charge too much for substitutions ~ mainly because they can; sometimes their portions are rather skimpy for what one is charged; I would prefer a restaurant who hires a staff of varying age levels ... not all 'children' who often are ill trained and sometimes bordering on rude if you're not 20 something! I've never tried a BJ's ~ we have none that I am aware of where I live ~ but will search one out and try it. Definitely, it's time for better family restaurant than Applebee's!
6-27-2008 @ 10:30AM
Joanne said...
I used to go to Applebees all the time but lately its so noisy and they sit you anywhere and the menu is limited and the service stinks and the rush you in and out of there. They let the young kids run around and don't care where they seat you. Where ever they seat you I can hardly speak to my husband over the noise. The last time we went there we left. Plus you always have to wait.
6-27-2008 @ 10:40AM
phyllis grumich said...
We would welcome BJ's to O'Fallon Mo.
6-27-2008 @ 10:50AM
inspro said...
I have been to bjs once in fresno ,Ca. and it was a pleasant experience would sure like to see one in mount pleasant ,MI. tons above applebees
6-27-2008 @ 10:51AM
Bill said...
If you are looking for the next Applebee's, look at THE GREENE TURTLE. One of the largest Applebee's Franchisees just bought interest in the company and they are now franchising on the East Coast through Chicago. Go to www.thegreeneturtle.com
6-27-2008 @ 10:52AM
Bill said...
If you are looking for the next Applebee's, look at THE GREENE TURTLE. One of the largest Applebee's Franchisees just bought interest in the company and they are now franchising on the East Coast through Chicago. Go to www.thegreeneturtle.com
6-27-2008 @ 11:03AM
mayoroflj1 said...
Applebey's is one of the last places I wouyld eat at again. I have eaten at 4 of these restaurants and all 4 were expensive and bad food.
6-27-2008 @ 11:19AM
sparklgurl18 said...
We had several BJ's in and around Portland, OR but they all closed. I love Applebee's and BJ's never really appealed to me.
6-27-2008 @ 11:35AM
mark s said...
my wife work there and they work her like a slave
i would never eat there because theyb let smoking person that work there take breaks all the time while my wife work 14 hours all night i guess slavery is still here for a lousy 12.45 a hour i hate them
6-27-2008 @ 11:39AM
ann hall said...
Like the GAP, and other long time chains, they just don't listen to their customers. The population is aging, though we are NOT old. We want delicious, food, that's low in FAT and SALT, that tastes good. We have the money to eat out---our family eats out 3 or 4 times a week, but less and less than we used to because of the above reasons.
You are all in the restaurant business (as the GAP is in the clothing business and can't figure out why the people who made it a hit--- don't shop there anymore) figure out what we want and get new chefs if you have to...........as the GAp needs to get designers to understand we are not all a size 4 and 16 years old.
6-27-2008 @ 11:42AM
Michael said...
We've had BJ's locations here in Oregon for many years and although I am no expert, I would think they will do well if they do not expand too fast. They have great food including the pizza, and freshly-brewed beers, for those who like.
6-27-2008 @ 11:43AM
arumandcoke56 said...
7 years ago in Tennessee, I dined there and was really disappointed at the service and food. Last year I tried it again in Wa. State. Same result only the menu was terrible. I will stick to Chili's, Ruby Tuesday's, and Logan's Roadhouse. Now those are casual dining the way it's suppose to be.
6-27-2008 @ 12:01PM
Mary Ramsey said...
I eat at Applebees and like it, the food is good and so is the service. The only problem with Applesbees is they dash to much salt and spices on the steak. BJ has just open here is Knoxville, Tn. Ate there once and loved it. I can't see why the two can't compliment each other. As a senior citizen I eat out at least once a day.
6-27-2008 @ 12:14PM
casualdiner said...
I have tried real hard to like Appleby's, but after two meals with hair in them and an unapologetic wait staff, and at least two meals that were greasy glop, I am done with Appleby's. They can go out of business for all I care.
6-27-2008 @ 12:19PM
Julie said...
BJ's is the best. We go there all of the time. The menu is awesome, service is great and it meets the needs of a family. Adult and kid food, adult beverages, sports on tvs to watch while waiting, but a nice restaurant atmosphere. I think it will do great!!! Applebees is just too noisy, food isn't good and it is expensive.
6-27-2008 @ 12:30PM
David said...
About 1/2 year ago, some Coporate person with some deggree of clout persuaded enough others in charge to do away with karaoke. In my neighborhood, this has affected 3Applebees. The food itself ranges from good to G-d awful but karaoke easily doubled the number of patrons that frequented these establishments alone. And Applbee's came out ahead as as result. BJ's, Wendy's, McDonald's etc. never had karaoke. Your company had something that the others did not offer. I had seen as many as two hundred
people frequent your establish at Crossroads Greenburgh on a Friday night for the mutual enjoyment of all. Conservatively, let's say 80 of them would have come anyway (however unlikely). We now have 120 extra people there to enjoy the karaoke. Let's say half of those 120 drank a non-alcoholic beverage (app.$2) and the other half had a beer ($3.50), a glass of wine ($4.50) and/or a frozen or mixed drink ($5-6) or a glass of hard liquor from the bar ($4-6)(this being a minimum); let's further agree that patrons spent between $8 and $12.99 on food. SOMEONE AT CORPORATE IS NOT DOING THE MATH!!! I.E. Non-alcohol loss=at Applebee's using this hypothetical, that's $120; on beer and wine, conservatively approximately another approximate $70;on frozen or mixed drinks (approx. $75); and on dinner foods and snacks another approximately $160-175).
Thus on the basis of the foregoing, on this one night, this Applebee's lost an estimated conservative sum of approximately $450. Of course, sometimes fewer people attend, sometimes more, many have more than one drink; they have an appetizer before the meal they have coffee or tea and dessert, for which, conservatively, another and on foood and snacks, again conservatively, adds another 100-150 to the total bill, bring the hypothetical and entirely reasonable total to approx. $ 600 x 3 Applebee's in my area alone which equals $1,800 lost on this one night alone.
In the competitive business you are in, would you not increase profits by continuing karaoke, even on a semi-weekly basis, costing Applebee's from $350-$700 to take in an additional minimum of $1,500 per show (should weekly attendance decrease on some weeks).
In addition, many are going to other venues that offer karaoke and telling their friends about, further keeping customers from frequenting your establishment as opposed to yours, to their benefit and your detriment. Profit thus increased by$1150 to $2,300 per week is just sound business practice and promotes more customers.
I am assuming that Applebee's wants to stay in business and increase profits. I would respectfully submit that by doing away with karaoke in your establishments, you are doing just the opposite in not offering customers anything that they can't get at another competitor in your market, who may well see my reasoning and further increase their profits at your company's expense.
Please consider the logic of the foregoing before one of your competitors does, to your company's detriment and decreased profit, and to their advantage rather than your own.
6-27-2008 @ 12:46PM
flash said...
As much as I hate AppleBee's I would eat there before I go to another BJ'S.