IHOP President Resigns, Purchasing Co-op Formed

Inside a Salt Lake City IHOP

DineEquity announced last Wednesday that the president of its IHOP Restaurants chain will leave the company on February 20 to be the CEO of another company.

DineEquity, which also owns the Applebee's restaurant chain, said it has begun a search for a replacement.

IHOP's senior vice president of operations, Jim Peros, will serve as interim president until a successor is found.

DineEquity piled on significant debt after IHOP bought Applebee's.

In September, then Chief Financial Officer Thomas Conforti resigned. Greggory Kalvin is currently the company's interim CFO. [Reuters]

In related news, franchise owners and DineEquity have formed a purchasing co-op.

"Expected reductions in food cost and increased supply chain efficiencies made possible by the Co-op will create a significant competitive advantage for our brands and present one of the greatest opportunities for improved franchisee profitability in the coming years," DineEquity Chief Executive Julia Stewart said in a statement.

About $6 million of the co-op's first year operating expense will be funded by DineEquity.

Franchisees are the primary owners of the co-op, which will be headed by David Parsley, DineEquity's former senior vice president in charge of supply chain management. - [Reuters]

Suggestion: Since franchisees are the primary owners of the co-op, they may want to consider appointing one of their own to head it up.