How IHOP Makes Money (Not Their Yummy Pancakes)

The batter for a pancake costs under 20 cents, and a stack of five can cost you more than $11. But the company with pancakes in its name runs just 17 of its 1,800+ restaurants. Its real money comes from a cut of everyone else's breakfast, and from being their landlord. So who actually gets your money when you pay the bill?

This is how IHOP actually makes money, and why it is now squeezing an Applebee's into the same building.

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