Calexico, California, June 3, 2026, 10:23 PDT
- The Calexico Applebee’s will shut down this month, with almost 30 jobs on the line.
- Calexico 10 Theatres, the only movie theater in the city and a nearby anchor tenant, also closed before the shutdown.
- Dine Brands is shutting some locations and focusing more on opening Applebee’s-IHOP combo stores.
Applebee’s is shutting down its Calexico, California, location this month, ending a run of more than 20 years. The closure leaves another gap in the local retail scene, following the shutdown of the city’s only movie theater. About 30 workers are affected, KYMA said.
Calexico’s timing is notable. This isn’t the only business to shut its doors on the block. The restaurant is right next to Calexico 10 Theatres, which closed May 3. City officials said the theater faced an “unsustainable financial situation.” KYMA
Two closures have left residents with fewer spots to meet in the border city, where chain restaurants and theaters bring in foot traffic for other stores. The Applebee’s at 2505 Scaroni Road was still shown on Applebee’s website with normal hours on Wednesday.
Applebee’s hasn’t given a reason for the closure, KYMA said. The Sun said the restaurant is set to shut down for good on June 23, but Applebee’s and Dine Brands didn’t confirm the date in public statements or filings seen.
Dine Brands Global is making moves in Calexico as it navigates uneven results for its casual dining brands. Applebee’s same-restaurant sales in the U.S. edged up 1.9% in the first quarter, but IHOP was flat, the company said last month. Fuzzy’s Taco Shop is also under the Dine Brands umbrella.
Dine Brands kept changing its store base in the first quarter. Applebee’s and IHOP opened 24 locations and closed 40. The company is guiding for Applebee’s domestic net development to fall by five to 15 stores this year.
Dine Brands CEO John Peyton said the company “reported improved comp sales versus the prior year” and is still “on track to achieve approximately 80 domestic” dual-branded restaurants by year-end. These dual-branded stores combine Applebee’s and IHOP in one location, using the same site for breakfast, lunch and dinner. Business Wire
Dine Brands’ approach carries risk. In its results, the company flagged inflation, labor, utility and commodity prices, franchisee health, and location availability as possible problems for performance. The sudden Calexico shutdown still has no clear cause—local demand, lease terms, costs or other factors remain unspecified.
Brinker International posted a 4.0% gain in Chili’s comparable sales last quarter, and Darden Restaurants reported Olive Garden same-restaurant sales up 3.2% for its fiscal Q3. That puts both value-driven competitors ahead of Applebee’s latest same-store sales pace.
Full-service restaurants that are struggling could face more trouble ahead, analysts say. Victor Fernandez, chief insights officer at Black Box Intelligence, said operators are “streamlining” and cutting back on locations. Ari Felhandler, analyst at Morningstar, said brands carrying debt feel the most strain from higher costs and shutdowns. Restaurant Dive
Calexico faces another closed door in the short term. Workers from the location will be searching for new jobs, and the stretch of retail loses a spot that gave shoppers a reason to stay. Applebee’s hasn’t said who might take over the site or what’s next for the building.
