IHOP took a “critical step” in its off-premises expansion Tuesday. In the latest news in what’s been an eventful 60th year in business, the Dine Brands chain announced the rollout of its first, and largest, national delivery program to date. With DoorDash, IHOP said its IHOP ‘N GO delivery platform will now reach more than 300 locations nationwide. Another 600–700 are expected to join by year’s end.
“For 60 years, IHOP has proudly served our guests freshly made breakfast favorites and more, all day, every day," said IHOP president Darren Rebelez in a release. "Undertaking a national delivery partnership is an exciting new chapter in our story and builds on the foundational work we've done on IHOP 'N GO this past year, including introducing a mobile app, online ordering through IHOP.com, and special packaging that preserves the quality of our food for takeout. Most importantly, our partnership with DoorDash helps us bring more pancakes, to more people, whenever and wherever cravings strike—something IHOP guests told us they wanted."
As Rebelez mentioned, IHOP’s to-go setup already includes a fully integrated online ordering system through IHOP.com and its mobile app. IHOP launched its to-go platform nationwide in mid-November. To-go accounted for 6.5 percent of total sales at the end of the first quarter, up 150 basis points compared to the same quarter last year. IHOP has seen strong check lift from off-premises. In Q3 2017, from call-in orders, IHOP was reporting average check of $15.22. Online orders were $20.43. In Q4 those numbers were $15.36 and $22.12, respectively. This deal, IHOP expects, will drive those figures even higher.
DoorDash users can access IHOP’s typical menu through the partnership, as well as limited-time offers, and other promotions. All delivery items, across all channels, will be placed in IHOP’s proprietary packaging designed to keep all-day breakfast foods hot and fresh. It’s also engineered for the company’s much-talked about Ultimate Steakburgers, which hit the marketing scene on the shoulder’s of IHOP’s IHOb campaign.
The packaging was introduced last year and cuts down on moisture while still trapping heat thanks in part to a modular shape. Read more about the packaging efforts here.
DoorDash is kicking off the deal with free delivery on orders $10 or more through July 22.
"As a leading delivery provider with extensive national reach and a focus on strategically—and rapidly—expanding, DoorDash is an ideal partner to help us kick off the next phase of IHOP 'N GO," Rebelez said. "Right now, about 300 IHOP restaurants are signed up with DoorDash with more coming online every day. Given the national matchup between where there's an IHOP and DoorDash's current and anticipated service areas, I expect to have close to 1,000 restaurants added to the DoorDash platform before the end of the year."
IHOP said DoorDash seamlessly integrates into its point-of-sale system, and will allow DoorDash to bring additional IHOP restaurants onboard at a rapid pace while ensuring a better experience for guests and employees.
“At DoorDash we pride ourselves on offering the best selection in the industry, and today's announcement with IHOP is especially exciting as this brand has consistently been a top requested restaurant by our customers," added Christopher Payne, chief operating officer at DoorDash. "Customers can now order their favorite IHOP menu items any hour of the day, from over 300 locations across the country, and counting."
IHOP and Applebee’s are set to report first-quarter financials on August 1. The 1,791-unit breakfast chain reported 1 percent same-store sales growth in Q4 versus the prior-year-period.