Long Island Applebee's getting refresh under national plan to bring back budget-conscious diners

The company that runs all 21 Applebee’s restaurant franchises on Long Island is remodeling locations under the national chain’s plan to lure back budget-conscious diners. 

Doherty Enterprises, the fourth-largest Applebee’s franchisee in the country, will update 10 of its restaurants by year’s end — including five on Long Island.

“The restaurant industry is never a static business. It is always changing," said Tim Doherty, president and chief operating officer of Doherty Enterprises. "It is our responsibility to adapt and modify with the change.” 

In recent years, casual-dining chains, including TGI Friday’s, Red Lobster and Ruby Tuesday, have seen sales dip as consumers cut back on eating out, pinched by rising housing costs and other essential expenses.

Casual-dining restaurant sales nationwide rose slightly, 1.9%, in 2024 compared to 2023 because of higher menu prices, according to Technomic, a Chicago-based research firm. But adjusted for inflation, sales declined 2.1%, the firm said.

Applebee’s Grill + Bar’s U.S. sales fell 6% in 2024 to $4.1 billion compared to the previous year. But Doherty Enterprises, which owns 80 Applebee’s across the New York metro area, including all 21 on Long Island, said its sales at Applebee’s on Long Island rose by nearly 2% in 2024 compared to 2023 and are up over 4% so far this year.

Doherty Enterprises is remodeling its Long Island restaurants because they are due for a refresh, Tim Doherty said.

"These restaurants are very well operated and well taken care of, but it has been 10 years since we put [a] significant amount of money into the facilities," he said. "And, ultimately, because we've been successful for so long, there needs to be a remodel.

Based in Allendale, New Jersey, Doherty Enterprises operates 161 restaurants in New Jersey and New York, including 21 Applebee's restaurants in New York City and Westchester County that it bought from franchisee Apple Metro in January 2024.  Doherty also owns all 33 Panera Bread franchises on Long Island.

In April 2024, Doherty sold its 26 Applebee’s restaurants in Florida and Georgia to Flynn Group, the largest Applebee's franchisee in the nation, "to concentrate our efforts on the New York [designated market area], where we believe we hold a strong competitive advantage," Tim Doherty said. 

His father, Ed Doherty, founded Doherty Enterprises in 1985. 

Focusing on looks, menu, value

This year, Dine Brands Global Inc. — Applebee’s parent company — launched its “Looking Good” reimage initiative, starting with 100 corporate and franchise restaurant remodels, CEO John Peyton said during a May earnings call with analysts.

Doherty Enterprises’ 10 planned remodels are part of that effort. On Long Island, updates to the Lindenhurst and East Islip locations — pilots for the reimage program — were recently completed, Tim Doherty said. Next up are Applebee’s locations in Valley Stream (at Green Acres Mall), Baldwin and Farmingdale.

The company plans 15 to 20 more remodels next year, with each costing upward of $250,000, said Tim Doherty, who expects that all 21 Applebee's restaurants on Long Island will be remodeled by 2027.

The revamps will include new awnings, lighting, flooring, furniture and decor.

Nationwide, Applebee’s turnaround efforts also are focusing on enhancing the chain’s menu and offering customers more value, Peyton told analysts in May. The brand has reached a point where it is "able to introduce a new item every quarter," he said.

“In [the first quarter], we launched our Big Easy menu, featuring two new Bourbon Street Cajun pasta dishes at a compelling price point starting at $11.99," he said. 

Applebee’s also revived its viral Date Night Pass, an exclusive perk for members of its Club Applebee’s loyalty program that offers monthly discounts of up to $50 on food and non-alcoholic beverages. The promotion spurred more than 175,000 new sign-ups, bringing total membership to 8.5 million, Peyton said in May.

'Growth by subtraction'

Some Long Island residents feeling the pinch of higher living costs say they're cutting back on dining out.

Newsday interviewed West Babylon resident Darren Brown on Tuesday afternoon as he picked up a takeout order from the Applebee’s in Lindenhurst. Brown, who works in heating, ventilation and air conditioning repair, has eaten out less over the past few months to save money, he said.

“I used to come here every Friday night with my friends, but we actually slowed down on that," said Brown, 30. "And just because I haven’t had it in so long, I decided to treat myself."

West Babylon resident Jimmy McNally, 63, hasn't reduced his frequent visits to Applebee’s in Lindenhurst, he said after having lunch with a friend at the restaurant Tuesday afternoon.

“Food’s good, cheap, reasonable,” said McNally, a delivery truck driver who said he is financially comfortable. “I can’t complain. ... I bought my house in the '80s."

But as inflation persists and tariffs loom, casual-dining sales have slowed following the post-COVID-19 pandemic boom, said David Henkes, senior principal at Technomic. 

Many "restaurants are taking a hard look at their portfolio" and opting to close underperforming locations, he said.

“To some degree, we call it growth by subtraction,” he said.

Since 2019, the casual-dining chains with the most closures are TGI Friday’s, with 249 shutdowns; Ruby Tuesday, 239; Applebee’s, 164; and Red Lobster, 161, according to Technomic.

Applebee’s remains the country's largest casual-dining chain, with about 1,500 restaurants nationwide.

But the chain faces a distinct challenge turning things around. Most of its locations are franchises, limiting Dine Brands’ control over in-store operations, said Eric Gonzalez, equity research analyst with KeyBanc Capital Markets. That means that if a brand needs reinvestment, rolling out changes can be slow since each operator must get on board, he said.

There are some casual-dining restaurants that are performing well. Chili’s Grill & Bar, Texas Roadhouse and LongHorn Steakhouse have thrived by refreshing their menus and generating buzz on social media, Henkes said. 

The top-performing casual-dining restaurant, based on sales, nationwide in 2024 was Texas Roadhouse, followed by Olive Garden, Chili’s, Applebee’s and Buffalo Wild Wings, Technomic data shows.