How IHOP is finding retail success with the help of PepsiCo, General Mills, Kraft Heinz

When expanding into retail, IHOP found CPG partners that could complement its brand identity and assist in the production of CPG goods, Jake Nebergall, VP of strategy and innovation at Dine Brands Group (IHOP’s parent company), shared at the 2024 Digital Food & Beverage event​ in Palms Springs, Calif.

“We know our guests ... but we know that we have some real deficiencies. We do not know how to manufacture a retail product,” Nebergall noted. “We do not know the category dynamics or how even our guests might shop in a retail environment. So, we need someone to bring that expertise to the table with us.”  

‘We are willing to wear different hats depending on the product’

IHOP designed each of the CPG products with a specific goal in mind, Nebergall explained.

“The cereal, for example, was a pure in and out. We knew that [the cereal] was going to be a single production run, only meant to be on the shelves for a couple of months, and we were not expecting the volumes to really move the needle from a revenue standpoint, but it is way to show up to our guests in a new and interesting way and generate some buzz and some excitement about our brand,” Nebergall said.

While the cereal was a limited-time-offering product, IHOP's coffee line​ is “a big volume driver,” and it “was one of the fastest-growing coffee launches last year,” Nebergall claimed.

The IHOP branded coffees include ground coffees in Buttery Syrup, Signature Blend and Chocolate Chip flavors and a cold-foam iced latte, available in Signature Blend, Chocolate Chip and a limited-edition Pumpkin Spice flavor.  

“We are willing to wear different hats depending on the product, and we like the strategy of one or two big launches a year that you might have to move the needle and then some fun things — show up in some aisle you might not expect,” Nebergall said.

Developing ‘a strategy in both directions’ from foodservice to CPG

In creating branded CPG products, IHOP is developing a "strategy in both directions," promoting retail products through its foodservice channel and vice versa, Nebergall said. The organization also is testing selling these CPG products within the restaurants, he added.

Additionally, Dine Brands is exploring how to invest in digital capabilities to create a platform to sell these products directly, but the company "is not there yet” when it comes to the scale, he admitted.

“We do some communication about these products through our channels, Instagram, that kind of thing. And then on these products, they all have links to our loyalty program. ... The QR code explains the program and tries to get them to sign up or educate them about that. And the offer … is you get three free pancakes, and so, we are trying to drive folks back into the store,” Nebergall said.