DineEquity, Inc., the parent company of Applebee’s Neighborhood Grill & Bar and IHOP Restaurants, today announced the successful formation of Centralized Supply Chain Services, LLC (CSCS), a purchasing co-operative (Co-op) established to manage the procurement of goods for nearly 3,400 franchise and company-operated Applebee’s and IHOP restaurants.
With Applebee’s and IHOP sharing more than 75% of their vendor partners, CSCS will leverage the buying power of thousands of restaurants to secure highly competitive contracts for key commodities and other items. The Co-op is currently projected to deliver 3% to 5% in cost savings to the Applebee’s and IHOP restaurant owners over the next several years. The Co-op will become effective on February 16, 2009. More.