International House of Pancake History
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IHOP was not always a multinational conglomerate. It is now one of the nations leading sit down, cheap restraint chains. With over 1,000 locations world wide it is a commonly known restraint. As of recent IHOP has had a 52-week high of 39.4 and a low of 27.04. Recently, IHOP rang the bell of the NYSE in celebration of the kick-off of the National Pancake Day (March 4) and the launch of a brand rejuvenation strategy for IHOP, which celebrates its 45th year in business this July. In honor of the occasion, Julia A. Stewart, President, CEO, COO rang the bell.
Before laying out the entire history of the International House of Pancake here is some simple background information: IHOP Corp. is a family restaurant chain that serves a wide variety of breakfast, lunch and dinner selections. Offering more than 16 types of pancakes, as well as omelettes, breakfast specialties, burgers, chicken and steaks, IHOPs menu is designed to appeal to people of all ages. IHOP restaurants are developed, operated and franchised by the Company. As of December 31, 2003, there were 1,165 IHOP restaurants in 48 states and Canada to be exact.
In 1958, IHOP Corp. traces started up by opening of the first International House of Pancakes restaurant in a suburb of Los Angeles, Toluca Lake, California. The American eating public quickly took to the concept of a restaurant based on one of Americas favorite foodsÐ. pancakes. Within four years the number of units had increased to nearly 50, with many of the restaurants being operated by franchisees. That is incredible when you think about it since it takes a while to start up a franchise. Obviously past, present, and future
In 1961 the company became publicly traded under the name International House of Pancakes. The remainder of the decade was a time of acquisition for the company. The company acquired both food and non-food businesses during this period with a strategy of becoming “The Franchise Company.” Because of these acquisitions and to reflect properly the diversified conglomerate become, the company adopted the name International Industries, Inc. in 1963. Restaurant brands under International Industries control during the 1960s included International House of Pancakes, Orange Julius, Loves Wood Pit Barbecue, Golden Cup Coffee Shoppes, The Original House of Pies, Wil Wrights Ice Cream Shops, Woodys SmorgasBurger, The Dog House and Copper Penny. Non-food brands included The Big Brake Safety Center, The Golden Oaks Retirement Homes, United Rent-Alls, House of Nine, and Sawyer College of Business. Through franchising the company was able to open new locations and grow many of these brands. This growth was quite fast for something that was nothing six years ahead of time. Before this essay I had never know that they did more than make pancakes, imagine that.
Acquisitions continued in the early 1970s when the company purchased The Shirt Gallery, Michaels Artists and Engineering Supplies and executed an agreement with Master Hosts International for the establishment of a major new motor hotel company. A strategic change would take place in 1973 with the company placing concentration for its future on a small group of brands: International House of Pancakes, Loves Restaurants, Orange Julius, Sawyer Business Colleges and The Bryman Schools. The 1970s would also witness the official “adoption” of IHOP for International House of Pancakes when in 1973 a new marketing program was undertaken utilizing the acronym IHOP for the first time. In 1975 the company would essentially complete its strategy of turning International Industries back into a restaurant franchiser and operator by divesting all remaining non-food businesses. In addition, the Orange Julius subsidiary was sold allowing the company to focus on its most successful brands IHOP, Loves Restaurants and Copper Penny. In 1976 IHOP Corp. became the successor company to International Industries, Inc. which had changed its name to International House of Pancakes, Inc. By the late 1970s the company was once again growing as new IHOP franchised restaurants opened in markets across the country. The decade would conclude with two transactions of international flair. In 1978 the company entered the Japanese market through an area licensee, and in 1979 a Swiss company acquired a controlling interest in the company. In addition, Richard K. Herzer was appointed president of IHOP Corp. Richard went on to become one of the best on of there best CEOs of the company.
The 1980s would bring an end to an architectural icon as the last A-frame IHOP was built in 1983. The new building was much more efficient and could accommodate more business but still retained key image characteristics of the famous A-frame including the familiar blue roof. For the balance of the decade the company focused on servicing franchisees and did not increase the number of locations. The company reverted back to American ownership in 1987 when Mr. Herzer and other investors purchased the company.
In the 1990s, IHOP continued its successful strategy of expansion primarily through franchising, increasing the number of restaurants from 490