IHOP is set to finally debut its new fast-casual spinoff chain after being delayed due to the sudden onset of the coronavirus pandemic. The pancake chain has also had time to ponder its rollout strategy amid the pandemic and has used the extra time to adjust its initial rollout.
A growing preference for fast-casual style dining prompted Dine Brands (NYSE: DIN) chain IHOP to work on its concept for a fast-casual spinoff. First revealed in 2019, Flip'd by IHOP was the brand's entry into the fast-casual market. The sudden onset of the pandemic delayed the debut of Flip'd, but it also gave the company time to refine the concept further.
Initially, IHOP considered a more limited urban rollout; the company is now planning on opening locations in suburban neighborhoods. This approach mirrors other successful fast-casual chains such as Chipotle (NYSE: CMG) and Panda Express, which can be found in cities, suburbs, and often in food courts at malls, airports, and some large universities. Flip'd will be extending its reach through a partnership with EG America, which will see Flip'd locations added to some of the company's convenience stores, such as Kwik Stop.
IHOP's spinoff comes after similar successful moves by Bloomin' Brands (NASDAQ: BLMN) and Cheesecake Factory Inc (NASDAQ: CAKE). The latter developed the fast-casual brands Aussie Grill, by Outback and Social Monk Asian Kitchen, respectively.
True to fast-casual form, Flip'd will essentially offer a slimmed-down "to go" experience. Customers can order various traditional menu items such as breakfast sandwiches and pancakes to go. Pre-packaged food items and drinks will be available for purchase as well.
The news doesn't seem to have motivated investors of Dine Brands much, as the company's stock has spent much of the week down. Dine Brands is down around 4% by market close on Friday compared to the opening price on Monday.