S1Ep224 Dual-Branded Franchise Strategy with Dine Brands' Scott Gladstone

Restaurant franchising has always been a game of margins, efficiency, and maximizing customer demand. But with rising real estate costs, shifting consumer expectations, and an increasingly competitive market, franchise operators face a critical challenge—how to drive profitability while delivering an exceptional dining experience. For decades, the industry has relied on single-brand locations, but a bold strategy is reshaping the landscape. The dual-branded franchise model is emerging as a game-changer, providing operators with a smarter way to scale, optimize resources, and attract a broader customer base.

Dine Brands, the powerhouse behind Applebee’s, IHOP, and Fuzzy’s Taco Shop, is leading the charge with this innovative approach. By bringing two well-known restaurant brands under one roof, they are redefining operational efficiency and customer convenience while creating new opportunities for franchisees. Scott Gladstone, Chief Development Officer & President of International at Dine Brands, is at the helm of this expansion, guiding franchisees through the advantages and unique considerations of adopting this model.

The concept of a dual-branded franchise is simple yet highly strategic. Instead of building two separate locations, franchisees can operate both Applebee’s and IHOP within a shared space. Customers experience the best of both brands while back-of-house operations remain streamlined, maximizing labor efficiency, inventory management, and overall cost savings. The approach also allows for more flexibility in site selection, making it possible to enter markets where a standalone restaurant may not have been viable.

For franchise owners, this model presents a compelling opportunity to diversify revenue streams without doubling overhead expenses. By aligning two brands with distinct peak dining times—IHOP’s strong morning traffic and Applebee’s thriving lunch and dinner business—franchisees can generate a steady flow of customers throughout the day. This strategic alignment addresses a common issue in the industry, where restaurants often struggle with downtime during off-peak hours. Instead of letting valuable square footage sit idle, operators can optimize their footprint and drive profitability across multiple dayparts.

While the dual-branded franchise strategy offers significant financial advantages, it also comes with unique challenges that require thoughtful execution. Maintaining brand integrity within a shared space means ensuring a seamless customer experience, from signage and restaurant layout to menu offerings and service expectations. Each brand has its own identity, and successfully merging them under one roof requires careful design and operational planning. Gladstone and his team at Dine Brands have worked through these complexities, creating a system that balances efficiency with a clear distinction between the two dining experiences.

The early success of dual-branded locations has sparked interest from both new and existing franchisees. Some operators are exploring conversions of their current restaurants to adopt the model, while others see it as an opportunity to enter new markets with a stronger competitive edge. Whether through new development or retrofitting existing locations, the flexibility of the dual-branded approach allows franchisees to make strategic investments tailored to their market conditions.

As the restaurant industry evolves, the ability to adapt and capitalize on new growth strategies will separate thriving brands from those struggling to keep pace. The dual-branded franchise model is proving to be a forward-thinking approach that benefits both franchisees and consumers alike. By leveraging shared infrastructure, reducing operational costs, and offering guests greater variety, this strategy is paving the way for the future of franchising.

For those exploring franchise opportunities or looking for ways to strengthen their current operations, understanding the dual-branded franchise strategy is essential. The shift toward multi-brand concepts is more than just a trend—it’s a smart business move that aligns with the realities of today’s market. As industry leaders continue to refine and expand this approach, it will undoubtedly play a significant role in shaping the next phase of restaurant growth.

Watch the full episode on YouTube.

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About Scott Gladstone

Scott Gladstone is the Chief Development Officer at Dine Brands Global, leading franchise development and strategic expansion across Applebee’s, IHOP, and Fuzzy’s Taco Shop. He also serves as International President, overseeing the company’s global portfolio. Since joining Dine Brands in 2016, he has played a key role in brand growth, off-premise innovation, and franchisee support. With a background in strategy and operations, including years at The Boston Consulting Group, Scott is focused on driving new opportunities for franchisees and shaping the future of restaurant development with forward-thinking concepts like the dual-branded franchise model.

Find out more on Dine Brands at DineBrands.com/en

About Ford Saeks

Ford Saeks is a Business Growth Accelerator with a track record of generating over a billion dollars in sales for companies ranging from startups to Fortune 500s. As the President and CEO of Prime Concepts Group, Inc., he helps businesses attract loyal customers, expand brand awareness, and drive innovation. A serial entrepreneur, Ford has founded over ten companies, authored five books, and been awarded three U.S. patents. His expertise also extends to AI prompt engineering, where he trains businesses to leverage AI for marketing, sales, and customer engagement. Learn more at ProfitRichResults.com and watch his TV show at Fordify.tv.