On the off-premises topic, to-go sales now account for about 7 percent of total sales, as of the end of Q2. That’s a 150 basis-point increase from the same period last year. IHOP inked a deal with DoorDash in July to bring delivery to more than 300 locations, and expects to have close to 1,000 restaurants on board by the end of the year. IHOP is also testing Amazon and GrubHub and currently has close to 150 restaurants combined providing delivery through those platforms. Overall, to-go comp sales hiked 32 percent during the quarter. To-go traffic grew by 23 percent. Burgers helped the dinner daypart significantly, Rebelez said, which, when you strip back the social media fervor, was really the anchoring purpose of the IHOb launch.
“Last year, we made a concerted effort to begin to change the narrative about IHOP in our lunch and dinner occasions,” Rebelez said. “We knew it would take great food and a bold new approach to grab people's attention and appetite. Our new lineup of Ultimate Steakburgers did just that.”
IHOP credited its comp gains to lunch and dinner daypart growth, along with off-premises, “and the positive impact from the initial leap of the highly anticipated launch of our all-new Ultimate Steakburgers lineup,” Rebelez said.
IHOP recapped other initiatives. Franchisees completed 58 remodels to the Rise N’ Shine program in the quarter, bringing the total completed this year to about 275 restaurants. Since the inception of the program, IHOP has refreshed more than 720 restaurants, or about 43 percent of the domestic system. Rebelez said IHOP expects to keep pace at 250–300 restaurants per year until completion.
Rebelez added that guest-facing technology is contributing to the growth of IHOP’s off-premises sales as a percentage of total sales as well as average check for online orders. The latter was up about 8 percent to more than $21 in Q2.
Additionally, IHOP launched its iHospitality service platform, rolled out WiFi, and restructured its field organization. “I'm pleased to say that these efforts are paying off and that our guests are taking notice. In the most recent period, according to NPD CREST data, IHOP achieved the highest overall satisfaction scores and the highest intent to revisit scores in both family dining and casual dining,” he said.
IHOP opened 14 restaurants globally in the quarter, including five international stores. Last month, the chain announced it was headed to South America for the first time through a 25-store, 10-year agreement.