DineEquity Inc. expects a 3 percent to 5 percent cost savings after forming a purchasing co-operative for its Applebee’s Neighborhood Grill & Bar and IHOP Restaurants. The Glendale-based company’s Centralized Supply Chain Services was established to manage the procurement of goods for the nearly 3,400 franchise and company-operated Applebee’s and IHOP restaurants. Applebee’s and IHOP share more than 75 percent of vendor partners. The co-op will become effective Feb. 16. “The creation of this purchasing co-op, and the benefits associated with it, are made possible as a direct result of the Applebee’s acquisition and is an example of efficiencies DineEquity intends to create for its franchisees,” stated Julia A. Stewart, DineEquity chair and CEO. “This co-op is the first of its kind in both casual and family dining and reflects the culmination of a collaborative effort by these two leading restaurant brands, its franchisees and DineEquity to leverage the immense buying power of the Applebee’s and IHOP systems.” David Parsley, DineEquity’s former senior vice president of supply chain management, will serve CSCS president and CEO. All existing DineEquity supply chain personnel will transition into CSCS on Feb. 16.
