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Thursday, Mar 28, 2024

Can Marketers Calm DineEquity Upheaval?

Glendale restaurant group DineEquity Inc., parent company of Applebee’s and IHOP restaurants, has recruited a well-reputed advertising agency and a lead marketer from Applebee’s pre-Recession days to strategize a turnaround for the casual dining chain. John Cywinski, who served as chief marketing officer at Applebee’s from 2001 to 2006, has returned to the brand as its president. His lengthy resume of executive roles at major restaurant companies has grown since his departure from Applebee’s; prior to his most recent post as executive vice president of strategic innovation at Chili’s Grill & Bar parent company Brinker International Inc., he spent 2010 to 2014 with Yum! Brands Inc. as president of the $4.4 billion U.S. arm of its KFC franchise. Although Applebee’s had been struggling beneath the weight of the looming economic downturn by the time Cywinski left the company in fall 2006, his first tenure with the brand saw some of its most memorable marketing initiatives. He is credited with spearheading Applebee’s “Carside to Go” curbside takeout service, its 2001 “Eatin’ Good in the Neighborhood” advertising campaign as well as its alliance with Weight Watchers. “(Cywinski) is in the unique position of being able to provide extensive industry experience … while already having a deep understanding and appreciation of the brand,” Applebee’s Chairman and Interim Chief Executive Richard Dahl said in a prepared statement. “We couldn’t imagine a better fit to lead Applebee’s turnaround.” DineEquity’s stock jumped on the announcement of Cywinski’s appointment, closing March 10 at $55.38 a share – its highest since plummeting more than 11 percent 10 days earlier following the release of the company’s 2016 earnings, which revealed sharp fourth-quarter losses at Applebee’s. Share prices climbed again to close at $55.50 on March 14, a day after DineEquity said it had designated New York advertising firm Grey Global Group as Applebee’s agency of record. The century-old full-service ad shop is behind campaigns for the NFL, 3M Co. and Procter & Gamble Co., among others. “We couldn’t be more excited to begin working with Grey,” Jeannine D’Addario, Applebee’s interim senior vice president of marketing and culinary, said in a statement. “(They have) a solid understanding of Applebee’s evolving consumer … and our goals to ignite change and deliver original and compelling work.” As DineEquity works out its strategy for Applebee’s, it continues to hunt for a new chief executive and chief financial officer. Former chief executive Julia Stewart, who formed DineEquity in 2007 by engineering IHOP’s buyout of Applebee’s, stepped down from the post on Feb. 17. Thomas Emrey resigned as chief financial officer on March 15 to assume an executive position at Van Nuys infant product company Munchkin Inc. Healthy Pizza? Few would deny that delivery pizza is more synonymous with “guilty pleasure” than “holistic health food.” But if you’re going to indulge without leaving the couch, why not get the biggest nutritional bang for your caloric buck? That’s the logic of Richard Paek and Chef Kevin Smith, the duo behind California-style pizzeria Lovebug Pizza in Woodland Hills. At the grand opening of their Topanga Canyon Boulevard restaurant on March 9, they claimed that their family-centric concept doesn’t require customers to choose between delicious and nutritious. “There’s a void in higher-quality pizza out there, so we’re filling that niche,” Paek said. From fresh herbs and hormone-free chicken to almond flour crust and vegan cheese, the menu at Lovebug Pizza is packed with what many consider to be better-for-you versions of old standbys. The pizza parlor’s emphasis on wholesome eating reflects a long-growing trend in the restaurant industry, one that has prompted even fast food chains like McDonald’s Inc. to pledge to take artificial ingredients out of their products. The movement isn’t likely to stop soon; consumers are growing more health-conscious in general, noted Deloitte in its 2017 report on the hospitality industry. That’s just fine with Smith. In his view, quality is as much defined by what’s absent from the ingredient list as what’s on it. “A big focus of mine is keeping chemicals out of our food,” he said. “We have a lot of people tell us they don’t get that ‘blah’ feeling after eating it. I think that’s the cleanliness.” Just don’t call it “healthy,” added Paek. After all, it’s still pizza. “We didn’t get into this business to provide healthy food,” he said. “We wanted to create a menu with food that’s cleaner but that people enjoy because it tastes good.” Staff Reporter Helen Floersh can be reached at (818) 316-3121 or [email protected].

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