Applebee’s Closures in Kansas City Area Raise Questions About Franchise Operations

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The closure of eight Applebee’s outlets in the Kansas City area has stunned customers, with only two restaurants left operational in the metropolitan region. High-traffic locations in Blue Springs, Northland, Mission, and Overland Park were among those affected.

  • Applebee’s Closures in Kansas City Area Raise Questions About Franchise Operations

  • Recent developments have seen eight Applebee’s locations abruptly shutting down in the Kansas City area, leaving only two remaining open in the metropolitan region. The affected locations include several prominent spots such as those in Blue Springs, Northland, Mission, Overland Park, and others.

  • The closures have left customers surprised, with signs on the doors of the shuttered locations expressing gratitude for the patronage over the years. Tony Moralejo, the president of Applebee’s, clarified that the decision to close these restaurants was made by the franchisee and not the brand itself. He acknowledged that financial circumstances likely played a role in the closures.

  • It is worth noting that Applebee’s restaurants operate on an independent ownership model, and the recent closures are reflective of decisions made at the franchise level. Despite the unfortunate turn of events, Moralejo emphasized that Applebee’s remains committed to the Kansas City area and is exploring potential options for the future of these establishments.

  • Applebee’s, which was once headquartered in Kansas City before relocating to California in 2015, operated under the umbrella of parent company Dine Brands. The management of the Kansas City franchise was taken over by American Franchise Capital LLC, leading to the formation of Apple Central LLC and Apple Central KC LLC.

  • However, the franchise faced challenges in recent years, notably with a lawsuit filed by Applebee’s in 2018 following the closure of seven restaurants in the area. The lawsuit stemmed from unauthorized closures that resulted in several vacant properties across Kansas City, impacting the franchise's reputation and public perception.

  • Moreover, criticism was directed towards a mid-level franchise executive, Wayne Pankratz, in 2022 after an email surfaced wherein he suggested paying workers lower wages due to economic factors. The controversial email sparked outrage, with some employees resigning in protest and raising concerns about fair labor practices within the franchise.

  • In the present day, William J. Georgas is identified as the principal shareholder of Apple Central KC LLC and Apple Central LLC, based in Connecticut. The changes within the franchise and the series of closures have raised questions about the operational integrity and management practices of Applebee’s in the Kansas City area.

  • Notably, the closures in Lenexa and Shawnee last year added to the challenges faced by the franchise, indicating a broader trend of restructuring and adjustment within the organization. The closure of multiple longstanding Applebee’s locations underscores the evolving landscape of the restaurant industry and the competitive pressures faced by established brands.

  • In conclusion, the abrupt closures of Applebee’s restaurants in the Kansas City area have prompted reflection on the complex dynamics of franchise operations and the impact of such decisions on employees, customers, and the community at large. As the remaining locations navigate the changing dining landscape, stakeholders await updates on the future direction of the Applebee’s brand in the region.


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