Applebee's betting on stress eaters, and it's paying off



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(CNN) – Applebee's knows you're stressed, and it wants to make you feel better.

That's been the brand's strategy since John Cywinski took over in March of last year.

And it's working: Applebee's same-store sales increased 7.7% in the third quarter of this year, setting a 14-year record.

While fast food brands are said to be more expensive, Applebee's has embraced comfort food for a banner year.

"Americans are stressed," Cywinski told CNN Business.

"When stressed, they tend to go to comfort food … and we're pretty good at comfort food," he said. "That's the role we play."

"We look at ourselves as the kitchen table," he said, noting that with about 1,800 rentals, most Americans are within driving distance of a restaurant. "We're that affordable indulgence."

What went wrong

A few years ago, Applebee's was struggling. The brand started selling seared and grilled items and serving smaller portions to chase to more health-conscious consumer.

With these initiatives, the "up-and-coming guest," said Brian Vaccaro, a restaurant analyst with Raymond James.

"They're trying to pursue a customer who's not going to Applebee's anyway," said Stephen Anderson, a senior equity research analyst at Maxim's restaurants. The strategy flopped, and sales declined.

Applebee's customers have an average household income of $ 70,000, the company said. About 30% of its customers are Millennials, but it also sells to Baby Boomers and Gen Xers. And it serves more families and black and Hispanic customers than its peers.

The brand struggled because it "Applebee's stands, and what Applebee's stands for," Cywinski said.

Cheap drinks and comfort food

To get Applebee's back on track, Cywinski has a new leadership team. He will be pleased to contribute to Applebee's advertising fund. He rolled out drink after promotion Promotion: Dollaritas, Dollar Zombies and, most recently, $ 2 Bud Lights.

Related Content: Here's how much fast food Americans are eating

Alcohol accounts for about 15% of Applebee's business, Cywinski said. It's important because it's stressed out to customers. And when people come to drink, they often order food.

When it comes to meals, Applebee is focusing on "abundant value," Cywinski said. That means all-you-can-eat riblets and chicken tenders and creamy pasta dishes.

Applebee's Chili and Olive Garden competitors have also been performing well recently.
Vaccarro said. Those are "all positive for casual dining," he noted.

But Applebee's has been "significantly outperforming the industry," added Vaccaro. That may be because Applebee 's has done such a good job that it' s about the value and the experience, he said.

Skirting the health trend

With a bigger advertising budget, Applebee 's poured money into campaigns that highlight the brand' s renewed commitment to indulgent food. The ads are designed to make you laugh and make you hungry, Cywinski said. One video, promoting the new pasta dishes, shows close-up shots of decadent dishes while "At Last" by Etta James plays in the background.

Applebee is still offering healthier options, Cywinski said. But the brand is focusing on comfort food. Applebee is about "making people hungry [and] satisfying them, "he said." So it does not mean small portions, it does not mean pursuing niche trends. "

The company has found its sweet spots without leaning on trends.

"They're not going after the avocado toast Millennials," said Anderson. "They're going after middle America."

Applebee's goal is paying attention to certain trends. Like other chains, Applebee's is investing in off-premise dining, technology and delivery.

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