IHOP, Applebee’s sees 'nice tailwind' from tax cut
Steve Joyce, CEO of Dine Brands – the parent company of major restaurant chains IHOP and Applebee’s – said on Thursday that a healthier economy led to “robust” growth in key areas.
“Our takeout and delivery is growing like crazy,” Joyce said during an interview on FOX Business’ “Mornings with Maria,” adding that it is a result of a better economy.
“A lot of the people going back to work are our customers,” he said. “And on top of that, the tax cut created a really nice tailwind for us.”
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President Trump signed the Tax Cuts and Jobs Acts into law last year, which not only created more wealth for employees but will also lead to lower product costs.
“Wages are going up nicely in all of our restaurants,” he said. “Our product costs next year are probably going to come down a little.”
Joyce said technology is also boosting business.
“We are doing a number of things in the restaurants with technology that are taking costs out and removing friction points for customers at the same time, which is great and that helps margins,” he said.