Dine Brands has opened Ontario’s first dual-branded Applebee’s and IHOP restaurant in Ajax, adding a second concept to an existing Applebee’s location.

The restaurant opened Aug. 4 at 155 Kingston Rd. E. and combines the two brands within one freestanding building. The format allows customers to order from both menus while the concepts share back-of-house operations.

The Ajax opening is part of Dine Brands’ wider push into dual-brand restaurants, which are intended to increase sales from existing restaurant real estate by combining Applebee’s lunch and dinner business with IHOP’s stronger breakfast and morning traffic.

Dine Brands defines its dual-brand restaurants as locations operating both concepts under separate franchise agreements within a single restaurant. Earlier versions of the format have shared an entrance, front-of-house staff and kitchen.

The company has increasingly been converting existing restaurants rather than relying exclusively on ground-up development. During the second quarter, six existing U.S. Applebee’s restaurants added IHOP and two existing IHOP locations added Applebee’s. Dine Brands had 44 dual-brand restaurants in the U.S. and 37 internationally as of June 28.

More Ontario conversions are expected. Existing Applebee’s restaurants in Barrie and Windsor have been identified for the dual-brand format, extending the strategy to additional established restaurant properties.

For franchisees, the model offers a way to add another restaurant concept without taking on a second standalone property, while spreading kitchen, staffing and occupancy requirements across two brands.