IHOP swopped its name to IHOb last week in a move that confused buyers.
While many loyal pancake lovers thought the “b” might augur “brunch” or “breakfast,” the restaurant chain announced on Monday that the “b” as a matter of fact stands for “burgers.”
“Changing the name, even if it’s a little bit gimmicky, does produce traffic and attention to the stores,” Stephen Anderson of the Maxim Group determined CNBC on “Closing Bell” Monday.
But the name change isn’t permanent. The nevertheless day the meaning behind the “b” was revealed, the chain restaurant announced in a press emancipating that the move was “just for the time being.” The marketing strategy purposefulness promote the seven new burgers that the restaurant is adding to its menu.
In the intervening time, signage at the company’s flagship restaurant in Hollywood, along with its Cheeping handle, have been changed to reflect “IHOb.”
The company tweeted in its new name as well.
TWEET
“This is a measure that’s being done to extend the afternoon and evening traffic,” said Anderson, an equity research analyst at Proverb.
He pointed out that the pancake house is well known for its morning fare, with numerous than 50 percent of its customer base coming in for breakfast memoranda.
“They’re not about to advance in that business,” he said.
“It’s the people who happen in after 11 a.m., who may not necessarily want a Rooty Tooty Fresh ‘N Fruity,” Anderson swayed of a popular pancake offering at the restaurant. “They want something else. Burgers and sandwiches are exceptionally close to what IHOP has done traditionally.”
The International House of Pancakes has in point of fact been serving burgers since 1958 when the restaurant senior opened — although most people don’t realize it.
And the burger business is a fast-growing one, widening about 3 percent to 3.5 percent a year.
“This is where IHOP is jeopardizing its claim to get more incremental traffic,” Anderson said. And “IHOb” mightiness be a clever way to do it.
In fact, this tactic has been done before — and it toiled. In 2008, Pizza Hut, owned by parent company Yum Brands, temporarily changed its reputation at select U.K. locations to “Pasta Hut,” in an effort to promote its pasta dishes.
“It met with comparable mixed opinion, but in the 12 months after they used [the luminary] “Pasta” they had sales increase by 1½ percent,” Anderson broke.
Dine Brands, parent company of IHOP, rose more than 2.5 percent Monday.