Sep 07, 2015 06:20 AM EDT

Applebee’s Buzzes To California, Cuts Jobs


Applebee's is buzzing its way to California after nestling in Kansas City for nearly four years.

The transfer of the international restaurant chain's headquarters comes amid the transfer of several companies out of Southern California.

On Friday, DineEquity Inc., the company that acquired Applebee's in 2007, announced that the Kansas City-based headquarters of Applebee's Neighborhood Grill and Bar is moving to California, adding that President Steven R. Layt has resigned from the company, Daily News has learned.

Chief Executive Julia Stewart will reportedly take over as interim president in the wake of Layt's resignation.

DineEquity is said to be planning to consolidate operations in Glendale. The parent company says that with this relocation, having Applebee's and IHOP in one place will create a "more collaborative" and "more nimble" environment between the two.

"This move best positions the company to act as a nimble, effective and efficient force for the future," Stewart said. "Consolidating most brand-centric, franchisee and consumer-facing aspects of Applebee's is an important step in that direction."

Mayor Ara Najarian spoke out in the midst of the company's transfer, saying: "We will be very happy to receive them and hope that they enjoy their new home."

Narjarian clarified that though the city helped Applebee's in the move, it did not offer the company financial incentives, as per Los Angeles Times.

The impending repercussion of such big move will cause the company to cut ten to twenty percent jobs from its 220 employees at the headquarters in Kansas City.

Applebee's has over 2,000 restaurants that are mostly franchise stores all over the United States and in 16 other countries, as noted by KansasCity.com.

This is not the first time the headquarters of the successful chain was moved. In 2011, it was transferred from Lenexa, Kansas to Kansas City after the move was aided by the $12.9 million incentive package of the latter and Missouri.

Kellann Restaurant Management President Michael Norsworthy said, "We're sad to see them go. We want Kansas City to be a vibrant community with lots of jobs."

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