At the Top of the Food Chain

You probably don't think of New York as a hotbed of franchise restaurants. After all, isn’t the Big Apple home to some of America’s most elegant cuisine? But in 1994, Zane Tankel and partner Roy Raeburn founded Apple-Metro, Inc., and opened an Applebee’s restaurant in Staten Island. Kansas-based Applebee’s is the country’s largest casual-dining company (T.G.I. Friday’s, Chili’s and Outback Steakhouse are well-known competitors). That restaurant was a hit and Tankel and Raeburn were off building their company. Today they have 25 Applebee’s, including the world’s three largest (on 50th Street and 42nd Street in Manhattan and in Rego Park, Queens), along with two Chevys Fresh Mex restaurants. In 2004 they also started their own casual dining spot, Zanaro’s Italian, in White Plains. Apple-Metro is currently the 54th largest restaurant franchisee in the U.S., as ranked by Restaurant Finance Monitor.

Tankel has spent a large portion of his 67 years owning and operating a series of businesses, including a graphic arts and printing company that had five plants across the U.S. Other firms he has owned and operated include a public relations company, an employee assistance consulting firm, a real estate business and a radio station. He got his feet wet in the restaurant business as an owner and operator of Cameos, a Manhattan fine dining spot, and was an investor in another restaurant. Tankel has been similarly adventurous in his spare time. An accomplished mountain climber, he was part of a team that successfully reached the summit of Mount Everest, and he has traveled to the North and the South Pole.

Recently, Apple-Metro’s business took an interesting turn when Applebee’s International, Inc., the franchisor, announced it was being sold to IHOP Corp. That sale is scheduled to close in the fourth quarter of 2007. NY REPORT editor Rob Levin sat down with Tankel at the 42nd Street Applebee’s to discuss how that will impact his company, how a veteran entrepreneur decided to become a franchisee, and how running a business is a lot like climbing a mountain.

The IHOP Deal

RL: Let’s get right to the news: IHOP is buying Applebee’s International. How will that affect your business?