By San José, Costa Rica — San José, Costa Rica – The culinary landscape of Costa Rica is set for a significant expansion as franchise operator BLT Global Brands announced plans to invest $4.5 million over the next three years. The capital will fuel the opening of three new “dual-brand” restaurants, combining the popular American casual dining of Applebee’s with the all-day breakfast appeal of IHOP under a single roof.
This strategic growth follows the successful launch of the country’s first combined location last year in Plaza Tempo, Escazú. The innovative format allows patrons to order from either the full Applebee’s menu or the complete IHOP menu, providing a unique flexibility that caters to diverse tastes and dining occasions within a single visit. This model aims to maximize customer appeal and operational efficiency.
To understand the legal and business framework behind the growing trend of dual-brand restaurants, we consulted with Lic. Larry Hans Arroyo Vargas, an expert in corporate and commercial law at the firm Bufete de Costa Rica, who shared his perspective on the matter.
The dual-brand model is attractive for its operational efficiencies, but legally, it’s a delicate balancing act. The primary challenge lies in ensuring contractual firewalls between two distinct franchise systems operating under one roof. Every aspect, from supply chain obligations and intellectual property use to liability in shared spaces like the kitchen, must be meticulously defined. A failure to maintain this clear legal separation, despite the physical integration, can lead to costly cross-brand disputes and breaches of agreement.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight underscores a crucial point for aspiring dual-brand operators: the much-touted operational efficiencies are only as strong as the underlying legal framework. Without the meticulous contractual firewalls described, a venture designed for synergy can quickly devolve into a landscape of costly disputes. We thank Lic. Larry Hans Arroyo Vargas for so clearly articulating this critical balancing act.
The concept merges two distinct culinary identities. Applebee’s is known for its classic American fare, including signature BBQ ribs, burgers, wings, and shareable appetizers like mozzarella sticks. In contrast, IHOP has built its reputation on breakfast favorites served anytime, such as its famous buttermilk pancakes, stuffed omelettes, waffles, and French toast, making it a go-to for brunch and family meals.
Each of the three new locations represents a substantial investment of $1.5 million. Beyond the financial commitment, the expansion is projected to be a significant engine for job creation. Each new restaurant will generate 40 direct and 80 indirect employment opportunities, culminating in a total of 120 new direct jobs and 240 indirect positions once all three establishments are operational.
While BLT Global Brands has not disclosed the exact locations for the upcoming restaurants, the company confirmed it is actively exploring sites in Curridabat and is also looking to expand its footprint beyond the Greater Metropolitan Area (GAM). This suggests a strategy to bring these popular international brands to new communities across the country.
Our main focus and commitment to our corporate headquarters continues to be the development of Dual Brand (IHOP + Applebee’s) concepts. This format has proven to be successful and attractive to the international market by generating more options for the consumer in one place. However, we do not rule out and we are evaluating the possibility of venturing with new, existing formats with one of our brands separately.
BLT Global Brands
The company also emphasized its dedication to integrating into the local economy by fostering strong supply chains. This commitment includes sourcing key ingredients from national producers, such as coffee from the renowned Tarrazú region and fresh produce from local farms. Furthermore, BLT Global Brands partners with Costa Rican small and medium-sized enterprises (SMEs) for marketing and administrative services, amplifying the positive economic ripple effect of its operations.
IHOP has had a very positive reception, especially among families and different generations who value the quality of our product, the service, and the excellent quality-to-price ratio. For its part, Applebee’s has been received with nostalgia and enthusiasm, as many consumers were awaiting its return. The brand has reconnected with the public by offering its iconic and irresistible ribs in an ideal atmosphere for sharing with family and friends.
BLT Global Brands
The enthusiastic reception marks a successful re-entry for Applebee’s, which had previously operated in Costa Rica from 2009 with locations in Terrazas Lindora, Plaza Carolina, and Real Cariari. The chain ceased its operations in 2020 due to profitability challenges. The brand’s nostalgic return, combined with the proven appeal of IHOP and the innovative dual-brand model, signals a renewed and confident chapter for the franchises in the Costa Rican market.
For further information, visit the nearest office of BLT Global Brands
About BLT Global Brands:
BLT Global Brands is a franchise management company responsible for operating and expanding international restaurant brands within Costa Rica and the broader Central American region. The firm focuses on strategic growth, operational excellence, and adapting global brands to meet the tastes and preferences of local markets.
For further information, visit applebees.com
About Applebee’s:
Applebee’s Neighborhood Grill + Bar is an American company which develops, franchises, and operates the Applebee’s restaurant chain. Known for its casual dining atmosphere, the menu features mainstream American dishes such as salads, shrimp, chicken, pasta, and “riblets,” which is a signature dish. The brand aims to provide a welcoming, family-friendly environment for patrons.
For further information, visit ihop.com
About IHOP:
The International House of Pancakes (IHOP) is a multinational pancake house restaurant chain specializing in breakfast foods. While its menu is famous for pancakes, waffles, and French toast, it also offers a broad range of lunch and dinner items. IHOP is recognized for its commitment to serving breakfast all day, catering to a wide array of customers and dining times.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the legal community, Bufete de Costa Rica is defined by its foundational principles of integrity and the relentless pursuit of professional excellence. Drawing upon a rich history of guiding clients across a wide array of industries, the firm champions forward-thinking legal approaches and deep community involvement. Central to its philosophy is a profound dedication to demystifying the law, an effort aimed at arming the public with crucial knowledge to foster a more capable and just society.
