Opening a restaurant franchise is both thrilling and challenging. 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.
If you’re thinking about joining the IHOP family by opening a franchise, this article will provide you with the information needed to start 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 California, and the chain spread fast across the U.S. In 1973, IHOP went public on the New York Stock Exchange.
In the late 1970s, IHOP began to change its menu to compete with other pancake chains. In 1978, the menu grew to include various breakfast items, and healthy options were added.
In 1983, IHOP changed its focus from “Pancakes” to “People” and began offering lunch and dinner items. This is when they made their famous Rooty Tooty Fresh and Fruity breakfast.
In the 1990s, IHOP started franchising and opened restaurants in other countries. In the 2000s, the chain kept growing, with new places in Guatemala and Qatar.
In 2006, IHOP changed its name from International House of Pancakes to simply “IHOP.” This was a big step as the company aimed to be the top international pancake house.
Today, IHOP has more than 1,600 locations in the United States and other countries.
IHOP Franchise Model
| Detail | Amount/Information |
|---|---|
| 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 |
How much do IHOP Franchise Owner Make?
| Year | Revenue | Profit | Sales | Margin | Owner’s Salary |
|---|---|---|---|---|---|
| 2019 | $1,553,311 | $464,725 | $1,553,311 | 30% | $464,725 |
| 2020 | $1,069,892 | $464,725 | $1,069,892 | 30% | $464,725 |
| 2021 | $1,625,251 | $464,725 | $1,625,251 | 30% | $464,725 |
An IHOP franchise owner can expect to make a profit of $464,725 per year. This figure comes from analyzing the financial data related to IHOP franchises. In 2021, the average revenue per IHOP franchise was found to be $1,625,251.
After considering various expenses and costs involved in running the franchise, the profit margin was determined to be 30%, resulting in the mentioned profit.
The numbers have shown a recovery and growth from previous years, such as 2020, when the average revenue per franchise was $1,069,892.
Is IHOP Franchise Profitable?
Yes, the IHOP franchise is profitable. An IHOP franchise owner can expect to make a profit of $464,725 per year, with a 30% profit margin. The numbers show that owning an IHOP franchise can be a rewarding business opportunity.
IHOP Franchise Training And Support
IHOP offers a training program called IHOP Academy for new franchisees. The training has two parts: a six-week program with 45 to 50 hours per week and a two-day workshop held across the U.S.
Support Of IHOP
IHOP gives help with many things like:
- Finding the right place
- Designing the restaurant
- Opening the place
- Keeping the business running
- Making plans to get customers
IHOP Skills And Areas Of Expertise
IHOP might give a place only to a business that plans to grow. The best partner for IHOP wants a long-term relationship and loves the brand.
They should know what works and doesn’t in the food business and how to get people to know about the brand. Experience in quality control, marketing, real estate, and supply management is needed.
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 an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.