Cheers! IHOP Adds Mimosas and More Alcoholic Options at Participating Locations Nationwide

The program is currently being piloted at three locations in California and New Mexico

Photo: IHOP

Buckle up. Alcoholic beverages could be coming to an IHOP near you.

On Thursday, the company revealed its new "Bubbles, Wine & Brews" menu for participating locations. The program is being piloted at three locations in San Diego, California and New Mexico.

IHOP expects to expand the option to other markets like New York, Rhode Island, Maryland and Ohio in the next few months. All franchisees will have access to the new menu soon.

President Jay Johns said introducing alcoholic beverages options is "a terrific innovation and evolution" for the company.

"We see this launch as part of our continued prioritization of the p.m. day part, with hopes of attracting new guests during different times of the day," he said in a release.

In addition to local beer and wine options, brand names like Bud Light, Blue Moon and Corona are featured on the menu. Mimosas and wines from Barefoot–Bubbly Brut, Bubbly Chardonnay and Cabernet Sauvignon also make the list.

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"While we are offering morning drinks, like mimosas and sparkling wine, we are also offering afternoon and evening-focused beverages to accompany IHOP favorites for meals beyond breakfast," Johns said.

Individual locations must acquire a liquor license in order to introduce the alcoholic menu. Acquiring the proper permissions can cost anywhere from $300 to $14,000 depending on location, according to Forbes. Some regions limit the number of licenses handed out.

Johns knows obtaining the required license may be difficult for some franchises, but notes other locations are eager to serve booze with their meals. He said the company "will continually offer franchisees the tools needed to successfully launch in their markets."

IHOP's alcoholic menu is a concoction of experiences and feedback from franchisees that have offered one-time drink programs over the years.

The new concept comes as the company struggles to recover from COVID-19, which has led sales to plummet since March 2020. Alcohol sales yield margins of about 75% for beer and 60% to 70% for wine, according to Forbes.

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Applebees, a fellow Dine Brands chain, typically generates around 15% of its sales from alcohol. And with more people drinking now than before the pandemic (60% more, according to Johns Hopkins and the University of Maryland), alcoholic drinks are in increased demand.

A survey of loyal customers in July showed 66% of IHOP's recent guests and 58% of guests ages 21 to 34 want to have an alcoholic beverage with their meal at the chain. Additionally, almost 50% of drinkers ages 21 to 70 reported being more likely to eat at the restaurant if alcoholic beverages were available.

"Through research, we've learned that consumers are excited for these new menu options," Johns said of the numbers, noting the company's "steadfast commitment" to meeting their guests' needs.

"As we explore ways to enhance the dining experience for our guests, we felt adding alcoholic beverage options to our menu is a right next step to propel that forward," he continued.