Applebee's Celebrates 20 Years Of Record Growth

Applebee's Neighborhood Grill & Bar celebrates its 20th anniversary this week without a sign of slowing down.

With 1,271 restaurants operating in 49 states and eight countries, Applebee's is the largest casual dining concept in the world, larger than its two nearest competitors combined.

The first Applebee's opened in 1980 in Atlanta, Georgia as T.J. Applebee's Edibles & Elixirs, a neighborhood bar and restaurant. "I had five partners, mortgaged my house and borrowed $50,000 to open the first restaurant," said Bill Palmer, the founder of the Applebee's concept, who together with his investors watched their dream become a reality.

"At first we had 17 tables and a long wait. We added another nine tables and an atrium and sales doubled. Then, it just kept evolving. I knew we had something when the aggressive growth began. It took us ten years to open the first 100 -- now we open more than 100 each year," said Palmer.

Palmer sold the Applebee's concept to W.R. Grace in 1983, but remains one of the company's most active franchisees. Applebee's International, Inc. was created in 1988 when midwestern franchisees Abe Gustin and John Hamra purchased the 54-unit concept from W.R. Grace.

"Bill Palmer's creativity got the ball rolling," said Lloyd L. Hill, Chairman and CEO of Applebee's International, Inc. "Then Abe Gustin, one of the company's early pioneers, grew the company beyond anyone's imagination. Bill and Abe continue to be very involved in our organization as franchisees providing a continuity that I think is unprecedented in this industry."

Applebee's quickly made a name for itself in the Restaurant industry thanks to the resolve of Gustin. He believed he could aggressively Franchise a casual dining restaurant, a restaurant that offers table service and a full bar. At the time, only Fast Food Franchising was predominant.

"Abe's idea of active, franchise partnerships has been an integral part of the company's success," said Hill. "We now have an experienced group of 68 franchisees who operate nearly 1,000 restaurants, and who are key to our growth, success and future," said Hill.

Applebee's pioneered casual dining's use of smaller restaurant facilities and more recently created a prototype casual dining restaurant for use in smaller communities with populations of 25,000. Applebee's also led the implementation of market penetration strategies in the casual dining segment, creating a presence in a specific area, then filling in the market afterward.

Applebee's will end 2000 with system-wide sales in excess of $2.6 billion. It will also mark the eighth consecutive year that the Applebee's system will open more than 100 restaurants, growing from 250 restaurants at the end of 1992 to more than 1,250 today.

Applebee's localizes each restaurant to reflect the neighborhood in which it operates. Each restaurant's decor reflects local hometown heroes ranging from local athletes and celebrities to firefighters and other notables. The menu offers a wide range of choices from appetizers and salads to steak, chicken and ribs. Average guest check ranges from $9.50 - $10.00.

The company continues to increase market share and customer awareness through aggressive expansion that sets the pace for the industry. Ultimate domestic potential of the Applebee's system is believed to be at least 1,800 restaurants, including small town markets and metropolitan areas, while international development simultaneously continues at a steady pace.

Applebee's International, Inc., headquartered in Overland Park, Kansas, currently develops, Franchises and operates restaurants under the Applebee's Neighborhood Grill & Bar brand, the largest casual dining concept in the world. There are currently 1,271 Applebee's restaurants operating system-wide in 49 states and eight international countries.

20th Anniversary Milestones
1980 - 2000

• 1980 - Bill and T.J. Palmer open T.J. Applebee's Edibles & Elixirs, a 17-table neighborhood bar and restaurant on Memorial Drive in Atlanta.
• 1983 - Applebee's concept and two restaurants are purchased by W.R. Grace & Co.
• 1984 - Applebee's opens first franchise restaurant.
• 1985 - Bill Palmer becomes Atlanta franchisee.
• 1986 - Abe Gustin and John Hamra open their first Applebee's as franchisees on 103rd Street in Kansas City.
• 1988 - Gustin and Hamra purchase the 54-unit chain from W.R. Grace for $21 million.
• 1989 - 100th restaurant opens in Nashville, Tennessee.
• 1989 - Applebee's system reaches $100 million sales mark.
• 1989 - Applebee's International, Inc. goes public.
• 1992 - Aggressive franchising continues completing the assignments of U.S. franchise markets.
• 1994 - Lloyd L. Hill is named Executive Vice President and Chief Operating Officer.
• 1994 - 500th restaurant opens in Solon, Ohio.
• 1994 - First international restaurant opens in Canada.
• 1995 - Applebee's system reaches $1 billion sales mark.
• 1998 - 1,000th restaurant opens in Aurora, Colorado.
• 1998 - First Small Town Applebee's Restaurant (STAR) opens in Warrensburg, Missouri.
• 1998 - Julia Stewart is named President of Applebee's Neighborhood Grill & Bar division.
• 1998 - Applebee's system reaches $2 billion sales mark.
• 2000 - Lloyd L. Hill is named Chairman of the Board.
• 2000 - Applebee's franchisee achieves $4 million in sales from single restaurant.
• 2000 - Applebee's exceeds $2.6 billion in sales and remains the largest casual dining concept in the world.