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Wealthier people eat more at Applebee's and IHOP

New York (CNN Business)Cash-strapped consumers are starting to drop andoverpriced goods We are exchangingitems for more affordable alternatives. This is good news for Applebee's and his IHOP.

In the three months ending June 30, sales for the two chains, both owned by Dine Brands, increased by approximately 6% to 8% among households with annual incomes above $75,000. , and Dine (DIN) CEO John Peyton.

This rise suggests that "guests who often dine at more expensive restaurants are finding Applebee's and IHOP because of their well-known value position." "That's what makes us perform so well in these difficult times," Peyton said on a conference call with analysts on Tuesday as they discussed the company's quarterly results. '' he said, adding that the brand performed relatively well during the 2008 financial crisis.

But increasing sales among high-income customers There is a flip side.

For both brands, sales declined by several percentage points in households with annual incomes below $50,000. "I think they asked us for a lower-cost option," Peyton said.These losses didn't hurt the company's quarterly results, but.Applebee's Sales for stores that have been open for over a year increased by 1.8% in the quarter, and sales for IHOP restaurants that have been open for over a year increased by 3.6% .

Both Applebee's and IHOP have increased menu prices this year. Instead of focusing on absolute prices, theylean towards other notions of value.

Always, "Both of our brands... are positioned to be value driven," Peyton said. It means "serving good food and generous portions in a great setting at affordable and friendly prices," and added, "In times like these, when the economy is tough for our guests, our brand has a special We have great expertise,” he adds, adding value.

Applebee's tries to avoid simple discounts. Instead, they offer deals on meal add-ons, such as an extra dozen shrimp for $1 when you order a steak.Another tactic is to give away freebies. As part of a Top Gun promotion earlier this year, his Applebee customers who spent at least $25 at restaurants got free movie tickets.

With IHOP, customers can find discounted products in his IHOPPY Hour for the brand, which starts at 3pm at participating restaurants, where entrees, snacks and sides are more expensive than usual. Sold at a low price. There are also limited-time promotions, such as kids eating free.