Applebee's trying out fresh food, look and campaign

— -- Applebee's is changing everything. It's changing its food — with a focus on fresh ingredients. It's changing the look of its stores — with more contemporary designs. And it's changing its marketing — with a new campaign rolling out Monday. But change does not come easily to the largest casual dining chain on the planet. The lousy economy swallowed up business. Savvy competitors have nibbled at its customer base. And signs of middle age — from dated design to a stilted menu — began to set in several years ago at the 32-year-old chain with 1,865 locations in 49 states (no locations in Hawaii — yet).

Enter Mike Archer, former president at T.G.I. Friday's and now president at Applebee's. Parent DineEquity (which also owns IHOP) turned to him four years ago to fix the mess at Applebee's. In an exclusive interview with USA TODAY marketing reporter Bruce Horovitz, Archer, 52, explains the changes at Applebee's and why he thinks he can make Applebee's relevant to the next generation. (This Q&A has been edited for length and clarity.)

Q: In its fourth decade,

isn't Applebee's getting a bit

long in the tooth?

A: We recognized several years ago that Applebee's had an opportunity to revitalize. Millions of people know and love Applebee's. We want to create a new generation of Applebee's lovers.

Q: Does Applebee's really stand for anything?

A: We're a neighborhood restaurant. We have enough options and choices for people to use us on a regular basis. We're part of the neighborhood.

Q: But does Applebee's have a signature product — like McDonald's has the Big Mac?

A: Our steak. It's America's favorite steak. We sell more steak than anyone in the bar and grill category.

Q: What's the most important change you're making at Applebee's?

A: The food. We're focusing on fresh, seasonal ingredients and improving flavor profiles. We're signaling the change by revitalizing the stores. And we're communicating the change with a campaign about the freshness and food quality. Our new summer menu includes lemon shrimp fettuccine with sauteed fresh spinach and basil. And our new garlic rosemary chicken is made with fresh-squeezed lemon. Until now, strawberries were used only in desserts and beverages at Applebee's. Now, strawberries are about to show up in a new salad.

Q: Isn't Applebee's late on the "fresh food" boat?

A: From a communications perspective, many out there are yelling fresh food. But we've been working on this for years. We started this four years ago when we went from frozen to fresh beef in our burgers.

Q: Do customers actually care if the beef is fresh?

A: Most people come in the restaurant and order a burger. So we created a fresh-burger platform and moved away from the frozen patty. Going to hand-smashed burger on the griddle changed the culture in our restaurants. It changed the perception among consumers that Applebee's food was processed.

Q: How will Applebee's look different?

A: We've redone everything to create a sense of arrival — from the stonework out front to the awnings. As you walk in, you'll be struck by what we've done to the bar. It now sits dead in the center of the room and is the focal point to the building. It has multicolored tiles. It has colorful fixtures. And it has high tables for gathering now. The pop-art clutter in the restaurant is all gone. And we created a unique mural for every restaurant that reflects the community. Oh, and the Tiffany lamps are gone.

Q: Some say Applebee's now looks more like a bar than a restaurant.

A: The bar has become much more of a focal point. It was a way to take this restaurant and make it more a part of the community. After 9 p.m., Mom and Dad and the kids are home, and you need to appeal to a younger clientele. It's bringing a new generation to Applebee's. In some communities, we're the only bar.

Q: What did these changes cost?

A: About $175,000 to $200,000 per restaurant. We've done about half the restaurants. We're talking about $200 million by the end of this year and about $350 million, in three more years, when we're done.

Q: What's new on the menu?

A: You'll see fresh flavors of the season. Fresh ingredients and bright flavors. Over the past four years, 85% of our menu items are new or improved.

Q: Shouldn't Applebee's have made these changes many years ago?

A: The bottom line is, yes, the brand should continue to evolve. But the pace of change with consumers is at a rate it's never been before. We're trying to just keep up with consumers. We're not just setting the pace of change, we're riding their pace of change.

Q: What's with the new advertising?

A: We're changing our messaging. The new slogan will change (from "There's No Place Like the Neighborhood") to "See You Tomorrow."

It's based on the proposition that because of the breadth and depth of our menu, we could see guests on an everyday basis.

Q: But didn't you recently lose your top chef to McDonald's?

A: We have a deep bench. Change is good.

Q: Applebee's created the "Two for $20" deals three years ago. Now, everyone seems to have them. Do these die when the economy improves?

A: It's not a promotion. It's a part of our everyday menu. We use it as a tactic to introduce new products. Two people can share an appetizer and each have an entree for $20. It gets guests to try new things.

Q: What about better-for-you food?

A: We have a relationship with WeightWatchers. But three years ago, we added an under 550-calorie menu. WeightWatchers is about losing weight. The under-550-calorie menu is about a lifestyle choice.

Q: Applebee's is becoming 100% franchised. Some say that can kill creativity.

A: I'd say franchisees stimulate creativity. Some of the best ideas come from franchisees.

Q: Isn't your core customer getting too old?

A: Our core customer continues to change. You have families with kids and millennials using us differently. We have 2 million fans on Facebook. It's less about the customer being old and more about being relevant to a variety of people.

Q: Hasn't your core customer been hit hard by the tough economy?

A: It's no secret that over the past four years the country has been hurting. What we're attempting to do is create value. Two for $20 at dinner. Pick a Pair at lunch. Half-priced appetizers after 9 p.m.

Guests may not be able to go out as often, but broadening our appeal allows us to bring more guests in.

Q: What's your top-selling entree?

A: Steak.

Q: What's your top-selling dessert?

A: $1 Brownie Bites.

Q: What do you typically order from the menu?

A: I order from the under-500-calorie menu, because I need to.

Q: What did you learn while at Friday's or Morton's that is now part of Applebee's?

A: You have to take extreme care with everything you do. The restaurant business is about a lot of little things. But I'd say the most important lesson is the way we expect our people to engage with our guests. At Morton's, we thought of ourselves as the neighborhood saloon for the rich.

Thirty years later, I'm still operating a neighborhood restaurant. You have to show every guest that you care.

Q: What if all of these changes that Applebee's is making don't work?

A: It is working. Our remodeled restaurants are seeing mid-single-digit increases. We're trying to position the brand to be relevant with our ever-changing guests. This is a journey that doesn't end.