Which Rocky Mountain all-day breakfast mainstay is suffering? And can brunch buffets stay alive in
the post-pandemic world? Keep watching to find out which breakfast chains might not last much longer.
The International House of Pancakes, known to most as IHOP, has been a staple for pancake
stacks for what feels like forever. Whether you're looking for a replenishing brunch
or a late-night stack, IHOP's creative pancake offerings always hit the spot.
However, back in October 2020, IHOP announced its plans to close nearly 100 locations
across the U.S., via Restaurant Business.
One of the company's franchisees owned 49 IHOP restaurants prior to 2020, when they had to file
for bankruptcy, according to FSR magazine. The move came after the company saw sales dwindle by
almost 30% in the first half of 2020, with its parent company, Dine Brands, reporting a net
income decline of 58.2%. Overall revenue was down 18.7%, hurting the brand, per Restaurant Business.
IHOP isn't going down without a fight, though. The company plans to hire 10,000 workers to
keep up with an increase in demand, while the U.S. collectively grapples with a labor
shortage according to Reuters. And the company is still moving forward with its
fast-casual restaurant concept, Flip'd, basically a mini IHOP with fast service,
first announced in late 2019. IHOP CEO Jay Johns said via an official IHOP media release,
"Since we originally announced Flip'd in 2019, a lot has changed. We wanted to ensure that we were
evolving the concept to meet our guests' needs. With flip'd, we can provide that on-the-go fast
casual experience, making now the perfect time to bring this concept into the world."
"Right about now, we could all use a pancake."
We all have those mornings where only a big plate of greasy breakfast will do.
And those of us lucky to live near a Perkins Restaurant and Bakery know
that it's the best place to get a hearty plate of eggs, bacon, and all the fixins',
along with a Mammoth Muffin to bring home for later. However, you're not
imagining things if suddenly you're finding it difficult to track down a Perkins near you.
Back in 2019, Perkins & Marie Callender's, LLC, filed for Chapter 11 bankruptcy protection after
closing more than two dozen locations according to Nation's Restaurant News. The company first
filed for bankruptcy back in 2011. Both of these instances were compacted by the decline in sales
in casual-dining industries, the increase in labor costs, and a tight labor market — and
this was all prior to the COVID-19 pandemic, which only exacerbated all of those issues.
The company currently has about 320 or so restaurants. The Perkins website shows that some
major markets only have a handful of restaurants, with states like Minnesota and Florida retaining
the most locations. However, a state like Washington only has two remaining restaurants.
Village Inn, an all-day breakfast restaurant, got its start in Denver, Colorado. While its
signature orange sign is a familiar sight around the Rocky Mountain region and a few other states
like Florida and Arizona, the restaurants have been quietly disappearing across the U.S.
According to Village Inn's website, the company has just over 120 locations listed nationwide,
after recently boasting more than 200 locations. The bulk of locations are in Colorado, Florida,
and Nebraska, but there are typically fewer than 10 per every state in which the company operates.
Since the end of 2019, 61 locations of the chain have closed, with 34 becoming franchises,
while the remaining were permanently shuttered, according to FSR magazine.
The company reported declining sales and margins since 2017, and it can be expected that,
as with most U.S. restaurants, they suffered more during the pandemic.
First Watch has found a way to market the stereotypical brunch experience
and turn it into a recognizable brand. The chain restaurant serves up a wide variety
of menu items, including seasonal pancake specials and avocado toast,
as well as a juice bar. Prior to the pandemic, in 2019, First Watch had
its quote "best year on record," according to CEO Chris Tomasso, via Restaurant Dive.
However, the COVID-19 pandemic slowed things down exponentially.
The chain closed down all locations temporarily during the pandemic,
and there have been reports of locations closing around the country.
While First Watch spots may be few and far between, the company is trying to recoup
losses from the pandemic by expanding. They've returned to restaurant projects put on pause
during the pandemic to open new locations. And, to maximize on fans of boozy brunch,
they've begun serving alcohol. To combat staffing issues and limited restaurant capacity, the
company features wait time technology, so patrons can better plan their visits to avoid long waits.
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