40 Locations of This Breakfast Chain Were Just Saved From Closure
Breakfast chain IHOP has permanently closed about 340 locations this year, but a fraction of the shuttered restaurants were just given a second lifeline after one franchisee filed for Chapter 11 bankruptcy protection.
Suncakes LLC, a subsidiary of Sun Holdings Inc., acquired 41 IHOP locations in North and South Carolina, Tennessee, and Virginia in July. The company hasn't confirmed a timeline for the restaurants to reopen their doors. However, one of the newly purchased IHOPs in Gastonia, North Carolina, was already back in business this week, according to a local newspaper. (Related: 9 Restaurant Chains That Closed Hundreds of Locations This Summer.)
The 41 restaurants had closed when previous owner CFRA Holdings filed for bankruptcy in May, citing the pandemic as the main reason for its financial woes. The company shuttered a total of 49 IHOP locations.
Sun Holdings Inc., helmed by award-winning CEO Guillermo Perales, already manages more than 1,000 Arby's, Burger King, Cici's, Golden Corral, Krispy Kreme, and Popeyes locations, making it one of the largest restaurant franchisee groups in the U.S. The new acquisitions represent the first locations of the popular breakfast chain to be managed by the company.
"As the owner and operator of multiple iconic brands, Suncakes' investment in IHOP reinforces the strength of our franchise opportunity and the future viability of our business," IHOP president Jay Johns said in a press release. "We are thrilled to welcome Guillermo and the Suncakes team to the IHOP family and are confident that their immense industry and brand expertise will undoubtedly yield success."
IHOP suffered from mandated restaurant closures during the pandemic, but the brand's business recovered significantly in the second quarter as customers began to place more online orders for curbside pickup and delivery.
The chain recently added several seasonal items to its menu, including Pumpkin Spice, Milk 'n' Cookies, and Cinn-a-Stack Pancakes.
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