Opening a restaurant franchise can be both an exciting and daunting prospect. One of the many aspects to consider is the potential success of a particular franchise within your local area.
IHOP has been one of America’s most popular restaurants for over 60 years, with more than 1,600 locations across the United States and Canada.
Suppose you’re considering joining the IHOP family by opening a franchise location. In that case, this article will give you all the info you need regarding how to launch a successful IHOP restaurant business.
About The IHOP‘s History
IHOP, or International House of Pancakes, was founded in 1958 by Al Lapin and Jerry Lapin. The first IHOP restaurant opened in Toluca Lake, California, and the chain quickly expanded throughout the United States. In 1973, IHOP became a public company listed on the New York Stock Exchange.
In the late 1970s, IHOP began changing its menu and formats to stay competitive with other popular pancake chains.
In 1978, it introduced a wider variety of breakfast items, like omelets, egg dishes, and French toast. The restaurant also began offering healthy options, such as wheat pancakes and low-fat muffins.
In 1983, the company rebranded itself by changing the “P” in “IHOP” from “Pancakes” to “People” – emphasizing its commitment to customer service. At this time, the chain also started offering lunch and dinner items such as hamburgers and sandwiches. During these years, IHOP developed its iconic Rooty Tooty Fresh and Fruity breakfast, which is still served today.
In the 1990s, IHOP focused on franchising and grew its presence internationally.
In 1992, IHOP opened a restaurant in Canada, followed by locations in Mexico and Japan in 1997.
The chain continued to expand throughout the 2000s, with locations in Guatemala and Qatar opening between 2003-2005.
In 2006, IHOP launched its biggest brand transformation since 1983 – changing its name from International House of Pancakes to simply “IHOP”.
This marked the beginning of a new era for IHOP as the company focused on becoming a top international pancake house.
Today, IHOP has more than 1,600 locations in the United States and abroad.
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IHOP Franchise Model
| Initial Investment | $414,866-$3,374,043 |
| Initial Franchise Fee | $40,000-$50,000 |
| Royalty Fee | 4.5% |
| Advertising Fee | 3.5% |
| Area Requirement | 30,000-50,000 Square Feet |
| Total Outlets | 1700 Units |
IHOP Franchise Training And Support
Training Of IHOP
For new franchisees, IHOP offers an introductory training program called IHOP Academy.
To proceed from the restaurant training program to the management training program and graduate from management training, trainees must complete online and practical assessments that include observation and testing of on-the-job performance to demonstrate knowledge and skill level.
There are two sections to the training:
- Approximately 45 to 50 hours per week for a six-week program.
- A two-day capstone workshop organized across the United States.
Support Of IHOP
IHOP provides comprehensive franchise assistance, including:
- Assistance in site selection
- Help with restaurant design and planning
- Assistance with the opening of a restaurant
- Operations are still ongoing.
- Consultation on marketing
IHOP Skills And Areas Of Expertise
IHOP occasionally grants territorial exclusivity only if the business commits to growth.
IHOP’s ideal franchise partner is committed to a long-term relationship with the company and is devoted to the brand.
It’s also critical that potential franchisees understand what works and doesn’t in the food industry and how to raise brand awareness.
As a result, partners should have experience in quality control, marketing, real estate development, and supply chain management.
IHOP Comparison
| Company | IHOP | Panda Express |
|---|---|---|
| Founded In | 1958 | 1973 |
| Initial Investment | $414,866-$3,374,043 | $377,100 – $1,884,000 |
| Franchise-Fee | $40,000-$50,000 | $25,000 |
| Total Outlet | 1700 | 1,900 |
| Annual Revenue | $3.12 Billion | $100 Billion |
Frequently Asked Questions
Is IHOP a franchise?
IHOP is a multinational pancake house restaurant chain franchised and operated by the International House of Pancakes.
How much does an IHOP franchise cost?
An initial investment to open an IHOP franchise is $414,866-$3,374,043, with a franchise fee of $40,000-$50,000.
Who is the Owner of IHOP?
IHOP is owned by Dine Brands Global, Inc., formerly known as DineEquity, Inc. Dine Brands Global owns both IHOP and Applebee’s restaurants.
Amit Gupta is the founder of DrFranchises – a digital marketing agency that helps brands rank better on Google Maps through local SEO strategies. Amit has over 11 years of experience in digital marketing, SEO, email marketing, and social media marketing. He’s also the owner of multiple franchises and has helped countless brands achieve success online. When he’s not working, Amit can be found playing with his dog.