Two popular restaurants are closing based on the decision of their parent company, DineEquity. As many as 160 #Applebee's and #IHOP restaurants are about to close. About 135 of the restaurants are Applebee's, and the rest are IHOPs. These numbers are much higher than they were originally projected to be in the first quarter of this year.

Why the closings?

It is always interesting to hear that when some stores close, the chain builds new ones. That's exactly what is happening with these two #restaurant chains. About 125 new Applebee's and IHOPs will open nationwide. Officials of the parent company explained that the closures are due to the absence of traffic the restaurants used to get.

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Closing the failing restaurants can have a positive effect on the ones that remain opened and the new ones that will open in other locations.

Applebee's and IHOP are closing because customers the restaurants could count on in the past are giving up the casual dining experience for more quick-service restaurants such as Panera Bread and Chipotle Mexican Grill that serve healthier meals.

Officials say that while it is not a pleasant feeling to close any of Applebee's and IHOP restaurants, it is necessary to shut down those that are underperforming to improve those that are staying open along with the new ones. The Glendale, California based parent company has not released a list of the locations that are set to close. More than likely, an Applebee's and IHOP will be closed in your area.

Applebee's

Applebee's is experiencing financial trouble because customers have other choices for casual dining.

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The 36-year-old company has 2,016 locations in the United States and other countries. Sales decreased 6.2 percent in the second quarter of 2017. The net income of $20.9 million went down from $26.4 million during the same period last year. Shares dropped from $1.45 a share to only $1.18 a share.

IHOP

IHOP stands for International House of Pancakes. The 59-year-old casual family restaurant chain specializes in pancakes and other breakfast foods. It also has lunch and dinner items on its menu. There are 1,650 locations in the United States and other countries.

IHOP's sales decreased 2.6 percent in this year's second quarter. According to a statement from officials, IHOP is on solid ground, but the chain is not growing. Executives are optimistic that closing some of the stores and opening ones in new locations will help increase sales.