Applebee’s is experimenting with a new pricing model that could increase traffic, re-ignite growth, and keep the chain’s roughly 1,500 US restaurants top of mind for consumers. Last month it launched the Date Night Pass. Customers pay $200 for a card that entitles them to a $30 discount off 52 meals (but not alcohol) over a one-year period at any participating location. The company said that its first tranche of passes sold out in less than a minute, though it did not say how many. Last week, it announced that it would make another 1,000 passes available to customers through a random drawing of people who sign up online. The lucky winners will be notified by email on Valentine’s Day. On paper, the move makes sense for the chain, whose same-store revenue was basically flat for the first nine months of 2023, as a higher average check offset lower traffic. An Applebee’s customer would need seven visits per year to amortize the cost of the pass. Whether they go alone, with a date, or with a group, the potential to drive more traffic is significant with the allure of the $30 discount for each visit. Quick-service and casual dining restaurants will need to get more creative with pricing, as they face significant increases in minimum wages as well as the elimination of tipping in some cities. It’s unclear whether the Date Night Pass will work, but its launch demonstrates restaurants have more options than raising prices and trimming menus.
Applebee’s makes more Date Night Passes available, but there’s a catch