2 2014 IHOP IP, LLC
For 56 years, the IHOP family restaurant chain has served our world famous pancakes and a wide variety of breakfast, lunch and dinner items that are loved by people of all ages offering an affordable, everyday dining experience with warm and friendly service. 4 5
...AND WE RE JUST GETTING STARTED! Mexico Canada Philippines Puerto Rico Guatemala Dominican Republic USVI Bahrain Kuwait UAE Saudi Arabia Qatar (2014) Guam (2014) IHOP.COM/INTERNATIONAL 80 70 60 50 44 56 40 30 25 29 36 20 10 0 8 8 7 4 12 6 7
We are delighted that you are interested in becoming an IHOP franchisee! We consider it a huge compliment when one of our loyal customers chooses to join our team as a partner and as an investor. IHOP has been delighting customers for over 50 years with our incredible food and iconic brand. Just about everyone in America has been to IHOP at one time or another, and there are few restaurant brands in America that inspire the loyalty and affection that IHOP does among consumers. We are now expanding IHOP globally, and the level of interest among consumers and franchisees around the world has been inspiring. Some of the best franchisees in the world have joined us over the past few years, and we have the unit growth to prove it. DineEquity is the parent company of Applebee s and IHOP, the respective leaders in the casual dining and family dining categories in the USA. We are proud of our heritage and our iconic brands. DineEquity trades on the NYSE under the symbol DIN, and we have over 2000 Applebee s and over 1500 IHOP restaurants in the US, making us one of the largest restaurant companies in the world. We are proud of our franchisees, most of whom have been with us for many years, and who continue to invest in our brands. We have a dedicated international team for all functions, including marketing, development, food innovation, and operations. Our international team comes from many different countries, with the experience and know how to make IHOP successful in diverse geographies. We are now looking for capable and motivated long term franchisee partners. We appreciate the opportunity to tell you about our food, our brand, and our franchise. We hope you will join us! Julia A. Stewart, Chairman and Chief Executive Officer, DineEquity 8 9
WHEN AND WHERE WAS IHOP FOUNDED? The first IHOP opened July 7, 1958 in Toluca Lake, California. IHOP was founded by brothers Al and Jerry Lapin. We have been cooking up pancakes for over 50 years. DOES IHOP FRANCHISE ITS RESTAURANTS? Yes, 99 percent of our restaurants are franchised. We believe that equity-involved owner/operators as franchisees will provide a better dining experience for our guests. CAN I BUY STOCK IN IHOP? No, but you can buy stock in IHOP's parent company, DineEquity, Inc. International House of Pancakes, LLC is a subsidary of DineEquity, Inc., which is publicly traded on the New York Stock Exchange under the symbol DIN. You can find more information on our Investor Information page. 10 11
FUN FACTS IHOP began in 1958 (July 7th) as a single restaurant in Toluca Lake, a suburb of Los Angeles in the San Fernando Valley. 56 Years later, there are 1,602 IHOP restaurants in all fifty states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands as well as Canada, Guatemala, Mexico,, the United Arab Emirates, Kuwait and the Philippines. The first IHOP outside of the United States opened in 1969 in Canada, making it truly an International House of Pancakes. At least two items have been on the menu since it was originally created 56 years ago: our famous buttermilk pancakes and our chocolate chip pancakes. Some of our famous signature pancake variations through the years include: THROUGH IT ALL, OUR BEST SELLING MENU ITEM IS STILL OUR CLASSIC BUTTERMILK PANCAKES. TO SERVE ALL THESE GREAT MEALS: IHOP SERVES MORE THAN 700 MILLION PANCAKES PER YEAR 32 MILLION POUNDS OF BACON, HAM AND SAUSAGE ACCOMPANY IHOP S SIGNATURE BREAKFASTS EACH YEAR MORE THAN 1.5 MILLION GALLONS OF SYRUP ARE USED TO TOP IHOP S FAMOUS PANCAKES PINEAPPLE UPSIDE DOWN PANCAKES CARROT CAKE PANCAKES PECAN PIE PANCAKES EGGNOG PANCAKES GINGERBREAD PANCAKES NEW YORK CHEESECAKE PUMPKIN PRALINE WHITE CHOCOLATE CHIP MINT PANCAKES RED VELVET PANCAKES JELLY DONUT PANCAKES EACH YEAR ABOUT 214 MILLION EGGS ARE USED TO MAKE IHOP S DELICIOUS OMELETTES AND BREAKFAST SPECIALTIES MORE THAN 100 MILLION CUPS OF COFFEE ARE SERVED EACH YEAR IHOP USES 14 MILLION GALLONS OF ORANGE JUICE PER YEAR IHOP SERVES MORE THAN 5.3 MILLION POUNDS OF T-BONE STEAKS AND 12 MILLION POUNDS OF GOLDEN DELICIOUS FRENCH FRIES TIRAMISU PANCAKES BANANA GRAHAM PANCAKES 12 13
1958 1961 Company is publicly traded under the name International House of Pancakes. 1979 The last of the iconic A-frame IHOPs is built. 1991 IHOP moves its headquarters to Glendale, California. 1992 500th IHOP restaurant opens. 2001 2008 50 year anniversary with over 1,400 locations coast to coast. Founders Al and Jerry Lapin and early investors Al and Trudy Kallis, open the first International House of Pancakes in the Los Angeles suburb of Toluca Lake, California. 1963 1985 Company adopts the name International Industries after it acquires numerous franchised brands, which it controls throughout the 60s. 1973 A marketing program introduces the acronym IHOP for the first time. The Rooty Tooty Fresh N Fruity is introduced, and guests across the country have fun pronouncing the one-of-a-kind breakfast. 1993 Average sales per IHOP restaurant exceeds $1 million. The 1,000th IHOP opens in Layton, Utah. 2003 The award-winning Come hungry. Leave happy. advertising campaign launches and introduces Stuffed French Toast. 2006 New ICON building prototype is introduced as the look for IHOP in the new millennium. 2010 Introduces SIMPLE & FIT menu, now with more than 30 items under 600 calories plus tips to meet nutrition goals. 2013 As of June 30, 2013, there were 1,593 IHOP restaurants in 50 states and the District of Columbia, as well as in Canada, the Dominican Republic, Dubai (UAE), Guatemala, Kuwait, Mexico, the Philippines, Puerto Rico and the U.S. Virgin Islands. 1958 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
FRESH Fresh eggs, fresh ingredients, fresh coffee. Get a made-from-scratch meal that always hits the spot. TASTY Got a stack? Pour on the flavor with four syrups, right at your table and ready to go. COMFORTABLE Be yourself and come as you are just out of bed, right off the field or after a night out. RELAXED What s the rush? Catch up over a fresh cup of coffee. Or two. Or as many as you want. SPECIAL Laughing. Sharing. Enjoying. Memories are made at the breakfast table especially at IHOP. 16 17
BERRIES AND CREAM BELGIAN WAFFLE CLASSIC BREAKFAST CREPES SWISS MOCHA COFFEE DOUBLE BLUEBERRY PANCAKES 18 19
BREAKFAST SAMPLER 20 21
CHICKEN FAJITA OMELETTE CITRUS CHICKEN PECAN SALAD 22 23
SIGNATURE DISHES IHOP serves more than 14 different varieties of pancakes including Buttermilk, Chocolate Chip, Harvest Grain N Nut, New York Cheesecake and its famous fruit-topped pancakes. Other signature breakfasts include the Rooty Tooty Fresh N Fruity, International Passport Breakfast and premium omelettes, such as the Big Steak Omelette and the Colorado Omelette. Lunch and dinner specialties include thick, juicy Cheeseburgers, Salads, Sandwiches, Chicken (or Country) Fried Steak, Pot Roast and T-Bone Steaks. IHOP restaurants also offer delicious desserts, including Fruit Crepes and Ice Cream Sundaes. 24 25
Is committed to a long term franchise relationship built on trust and respect Knows how to build a brand Understands that accessible pricing and value are core components of casual dining Is highly commercial, particularly in critical areas like supply chain, quality assurance, real estate development, and marketing Has or will have infrastructure dedicated to the development of our brand Has material liquidity and net worth, with access to capital Has a track record of developing multi unit restaurant systems OUR FRANCHISE QUALIFICATIONS We prefer franchisees who have multi unit experience with restaurants, as they tend to be able to develop better and faster. Experience in real estate development and supply chain is particularly important. We typically require, at a minimum, 3 restaurants over 3 years; this requires a minimum of USD $1MM in cash or liquid assets, plus substantial net worth, typically USD $1MM per restaurant. In addition to a standard application form, we will require completion of a professional level business plan. This helps us understand the overall opportunity, the capability of the franchisee, and the overall stability of the venture. We are committed to successful, long term commercial relationships and the best basis for this relationship is a thoughtful and profitable plan. 26 27
SUPPORT 01 02 03 04 05 06 07 08 09 10 Franchise inquiry/contact Application form Exploratory discussion with DineEquity Non disclosure agreement Term sheet Market visit + business plan Franchisor due diligence/background checks Franchisee visits our global HQ in Los Angeles, California Contract execution Training/open SITE SELECTION ARCHITECTURE AND DESIGN RESTAURANT OPERATIONS TRAINING FOOD INNOVATION SUPPLY CHAIN MARKETING RESEARCH AND DEVELOPMENT OPENING ONGOING ASSISTANCE 28 29
DUBAI MALL, UAE DUBAI, JUMEIRAH BEACH RESORT, UAE DUBAI MALL, UAE 30 31
LE MALL, JEDDAH, SAUDI ARABIA DIVONNE, KUWAIT CITY, KUWAIT LE MALL, JEDDAH SAUDI ARABIA 32 33
FORT BONIFACIO, METRO MANILA, PHILIPPINES FORT BONIFACIO, METRO MANILA, PHILIPPINES MALL OF ASIA, METRO MANILA, PHILIPPINES 34 35
ATLANTA HARTSFIELD EXPRESS, ATLANTA, USA CENTURY CITY, METRO MANILA, PHILIPPINES JABRIYA, KUWAIT CITY, KUWAIT 36 37
PROJECT ALPHA REDESIGN 2014 38 39
RESTAURANT GROWTH YEAR RESTAURANTS SYSTEM-WIDE RETAIL SALES 1999 903 UNITS, 1.1 MILLION SALES 2000 968 UNITS, 1.2 MILLION SALES 2001 1,017 UNITS, 1.3 MILLION SALES 2002 1,103 UNITS, 1.4 MILLION SALES 2003 1,165 UNITS, 1.7 MILLION SALES 2004 1,186 UNITS, 1.9 MILLION SALES 2005 1,242 UNITS, 2.0 MILLION SALES 2007 1,344 UNITS, 2.3 MILLION SALES 2008 1,396 UNITS, 2.4 MILLION SALES 2009 1,456 UNITS, 2.5 MILLION SALES 2010 1,504 UNITS, 2.6 MILLION SALES 2011 1,550 UNITS, 2.7 MILLION SALES 2012 1,581 UNITS, 2.7 MILLION SALES 2013 1,620 UNITS, 2.8 BILLION SALES 2006 1,302 UNITS, 2.1 MILLION SALES 40 41
FOR MORE INFORMATION ON BECOMING A FRANCHISEE CONTACT: CHRIS WREN Executive Director, International Development Applebee s + IHOP + chris.wren@dineequity.com + 18186373132 RESTAURANT SUPPORT CENTER: 450 North Brand Blvd. Glendale, CA 91203-1903 + 18182406055 CRAIG HOFFMAN Media Contact for IHOP Restaurants + craig.hoffman@dineequity.com + 18186373603 IHOP.COM/INTERNATIONAL 42 43
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