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DineEquity CEO on Inflation

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  • Description

    DineEquity CEO Julia Stewart on the impact of rising commodity costs on the company.

  • Duration 4:41
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They -- some cuts are soaring 30% over the past two years so how is it my next guest is able to sell state dinners for ten bucks up.

Julie Stewart is that this CEO of -- equity the company that owns among others Applebee's and I hop.

-- -- -- thank you cards from the from you guys do because I did I single handedly.

I keep you thriving but that's OK that's OK very good added thanks a government.

Thank you how do you do that really in the face of this be present you gotta make the money somewhere and it.

You know a ten dollar stake by the way how big is the -- It's seven ounces and there's a little things going on first and foremost our guest deserve it.

Secondarily we have fabulous franchisees who work hard -- providing you -- fabulous guest experience great service great food and thirdly.

So -- years ago we formed a purchasing co -- so we get the maximum value out of that two billion dollar spend -- so and I think we're able to offer really great value.

Well obviously that draws the man on did to do they end -- bordering matter -- -- -- Motorola.

You know the -- of wings on the on onion rings and.

Fries and.

I don't know why wouldn't a best products 1819%.

Of our guests -- -- the two for when he.

And does arrest order off something else from the -- and when we market.

That the next goes up slightly but there's a lot of value on another menu it's not just the two for two -- and so when they did it -- for -- is -- one person like myself ordering the two meals or is it actually couple.

-- share.

It's usually you would someone else ordering each and entree and sharing an appetizer.

-- -- -- I would be different because I would be ordering four and that means it's a cool it's taken the corner on really going manager I've talked to a lot of -- tours of -- who've been dealing with the same things out easier dealing with Damascus are much bigger player.

And they all have to find ways to deal with his food inflation's -- -- to make the -- in smaller.

They -- sort of deals like what you offer to get people in the door.

But it's time because you try not to pass those increases along.

So what do you do.

Well I think the best part is if you have a really healthy brand like we do it both I -- Applebee's.

Your franchisees.

Can usually priced to cover inflation.

And we've been able to do that but justice importantly.

It's menu engineering -- products we create and serve so our franchisees have an opportunity to make money but certainly are passing on that great value to the guests.

And as I mentioned earlier this purchasing co op is a big deal for us.

That's an opportunity to combine that the spending of both I hop and Applebee's so that we are able to -- -- that great value.

On to our franchisees who passed on to our guests are now.

I have there's a different story you know we're living in this -- what was that study out dozens as forty some odd percent of us are obese are going to be obese and and then here you are soon as great delicious food I often.

You know.

It you have to count -- because you have the food police are saying too -- town gates to many.

And you know pancakes.

And French toast some loaded -- these guys and what do you do to counter there whining about that.

Best part of the story for both I hop -- Applebee's is it's all about choice both of the -- spoke that I happening Applebee's.

Have health and wellness sections so literally.

We provided the opportunity on the AI -- -- simple and -- Under 600 calories as well as an entire children's menu -- every item is under 600 calories -- of lots of options to choose.

I'm getting alloy that's in June I mean that you know no matter we do when you did diversified the menu -- -- calorie count and you break it down like you said for the kids.

I suspect that a lot of these guys who polices of aren't satisfied until chains like viewers.

Are our -- the doors are changed you know I mean.

I.

I think.

What I hear from guests and I hear from franchisees is that people really love the options and the opportunity for actually has some pretty convoluted freak weather -- whether they eat it every time or not is another story.

But we've had a good increase in the number of people who either want the simple and said.

Or want the opportunity for Weight Watchers.

Or want the opportunity for under 515 -- -- Applebee's we've heard nothing but -- positive response from all of the choices that we provide people.

You've irritation with the private decision or if you're an underneath that I will -- -- -- your place.

Do you -- thank you very very much -- to.

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