10 Biggest Scandals In Applebee's History

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Founded in the 1980s, Applebee's is a pretty popular dining destination. In fact, per YouGov, it's only disliked by 11% of the population, and, out of nearly 300 dining brands in the U.S., it sits at a respectable 20th place (above other beloved chains like Panda Express, Five Guys, In-N-Out Burger, and KFC).

But popularity doesn't protect any chain from scandal and backlash. In fact, from infamous hot coffee spills (looking at you, McDonald's) to anti-LGBTQ backlash (hello, Chick-fil-A), most of America's biggest chain restaurants have seen their fair share of scandals over the years, and Applebee's is no exception.

Here, we take a closer look at some of the biggest scandals in Applebee's history, and just a warning: Some of them are pretty gruesome. Like, severed body parts — that kind of gruesome. You've been warned. If you love Applebee's salads, you might want to look away now.

The racial profiling incident

In 2018, two women decided to leave Applebee's without paying the bill. It's annoying, sure, but many would argue that any frustration felt about the incident is no justification for what happened next. The evening after the dine-and-dash, two different Black women sat down to enjoy a meal at the chain restaurant, only to be interrupted by a police officer accusing them of leaving without paying the previous evening. It turns out, in what was widely labeled as racial profiling, a server had mistaken them for the dine-and-dashers and phoned the police without consulting them first.

One of the women, Alexis Brison, filmed the entire incident on her phone and uploaded it to Facebook, where, of course, it went viral and prompted widespread outrage. In a bid to calm the PR nightmare, Applebee's attempted to apologize for the whole episode on social media, revealing that three employees had been fired. But, as you probably won't be surprised to learn, many people were not quick to forgive the fast-casual chain. "Yeah, this whole incident is disgusting," wrote one X user. "I frankly don't know if I'll ever set foot in an Applebee's again."

The drunk toddler

Applebee's is supposed to be a family-friendly chain. After all, it has a kids' menu, with smaller servings of everything from mac and cheese to burgers and corn dogs. Of course, it doesn't include alcohol, because who would serve booze to children? Well, it turns out, an Applebee's employee might just do that.

It's hard to believe this actually happened, but in 2011, a toddler was served cocktail mix at an Applebee's in Detroit, Michigan. When the child started talking to walls, the parents knew something was up, and quickly discovered that he wasn't drinking apple juice, but a mix supposed to be used for margaritas. Per a subsequent lawsuit filed by the parents, they rushed him to a hospital, where they were told he had a blood alcohol content that, if the then-15-month-old were able to get behind the wheel of a car, would have put him above the drunk-driving limit.

Even more shocking (yes, it gets worse), this wasn't the first time Applebee's served alcohol to a child. In 2005, a five-year-old was given a Long Island iced tea (which, as a reminder, contains rum, gin, vodka, and triple sec) instead of apple juice.

The thumb in the salad

If you thought: "Surely, it can't get worse than serving a child alcohol?" Our next scandal might make you think again. In 2005, another customer of the fast-casual chain's location in Jefferson, Louisiana, claimed they were served a salad with a fingertip in it.

Listen, sometimes, these incidents raise a few questions about the diner's integrity. This was, indeed, the same year that the Wendy's finger hoax happened. If you need a quick reminder: A woman tried to sue the fast food giant after she allegedly found a finger in her chili, but it turned out she had placed the finger there herself in a bid to obtain a large payout (she was sentenced to nine years in prison and released after four). But this Applebee's incident, well, it seems like it actually happened.

In fact, the chain even worked out where the finger had come from: A worker had sliced off the tip of their thumb while preparing the salads. Applebee's apologized for the incident, but the customer still filed a lawsuit, although it was ultimately unsuccessful. We'd love to say that was the end of finger-related incidents at Applebee's, but in early 2016, a pregnant woman in California claimed she was also served a fingertip in a salad at an Applebee's restaurant in Paso Robles.

Applebee's had to pay $270,000 to settle a sexual harassment lawsuit

Applebee's hasn't just been sued by customers; it has also faced legal action from its own employees. In the spring of 2026, for example, it was ordered to pay $270,000 to settle a sexual harassment lawsuit. According to the suit, which was filed by the U.S. Equal Employment Opportunity Commission (EEOC), six female employees at an Applebee's in Chelsea, Alabama, were forced to work in a sexually hostile environment. They had to constantly deal with unwanted behaviors like sexually charged comments and advances, all while management allegedly did very little to help them.

Unfortunately, this is far from the first incident of this nature reported at an Applebee's. In 2018, for example, a Vox investigation revealed that more than 60 sexual harassment complaints in eight states had been filed by workers at both IHOP and Applebee's. Once again, these employees reported repeated unwelcome behaviors, including sexual advances and groping.

It was forced to pay $100,000 to settle a discrimination lawsuit

No one should have to deal with any form of discrimination in the workplace. But unfortunately, at an Applebee's in Plant City, Florida, in 2022, two employees claimed they were forced to endure racist and homophobic abuse during their time working at the restaurant.

When they complained about the harassment, which apparently included racist and homophobic nicknames, the employees alleged they received very little support from management. Fortunately, they successfully filed a lawsuit, and Applebee's was asked to pay $100,000 to settle the case. Not only that, but the chain restaurant also agreed to provide more training for employees regarding racial and homophobic discrimination.

But again, this isn't the first time that Applebee's has been embroiled in a scandal of this nature. In 2018, for example, the company also had to pay $100,000 to settle another lawsuit, this time because a transgender employee accused one of the chain's New York restaurants of firing her for complaining about anti-trans discrimination.

The E.coli lawsuits

People head to Applebee's mostly because it's family-friendly and familiar, or maybe because they're in the mood for the chain's best appetizer — its boneless wings. The experience is supposed to be relaxing and safe, with the biggest discomfort only from simply eating too much food. And to be frank, most people leave Applebee's without coming to any harm. But not everyone.

In 2004, a lawsuit was filed against the chain after a 19-year-old fell ill with E.coli and had to be rushed to the emergency room by his mother after eating a steak at a location in Lakewood, Colorado. It turns out the steak slipped through a recall of 80,000 pounds of contaminated meat.

For the most part, people recover from E.coli infections, but they can be deadly, especially for toddlers, the elderly, and individuals with compromised immune systems. Unfortunately, 10 years later, Applebee's faced another similar lawsuit. In 2014, at least seven people fell ill with E.coli after eating the chain's Oriental Chicken Salad at a restaurant in Minnesota.

The leaked email

Be careful what you say, because it might just end up on Reddit. That's the lesson that one Applebee's franchise executive learned in 2022, when one person took a photo of an internal email he had sent to colleagues and posted it on the popular social media forum. In the email, the executive, Wayne Pankratz, suggests that rising gas prices across the U.S. could cause job applications to increase and, in short, this would allow employers to reduce the hourly wage they pay workers.

In a bid to save its reputation, Applebee's placed Pankratz on leave and stressed that his views did not reflect those of the entire company. But for some, the damage was done. The now-locked post in the r/antiwork subreddit garnered nearly 80,000 votes and more than 5,000 comments, most of which were, quite frankly, appalled at the exploitative sentiment of the email. "And just like that, I never ate at Applebee's again," reads one comment with 2,700 upvotes. Another, with nearly 10,000 votes, added: "I don't wanna be over dramatic or nothing, but this is exactly why the French Revolution happened."

The lawsuit over hidden delivery fees

In 2025, Applebee's was forced to face another lawsuit, but this time, it wasn't over severed fingertips or deadly bacteria. Nope, the reason was arguably far less dramatic, but still hugely impactful. According to the class action suit, Applebee's had been misleading people on its delivery apps. It alleges that the chain adds on unnecessary delivery charges right at the final checkout screen, which means that the price you actually pay is far more than initially advertised.

To be clear: It's not necessarily that the claimant is bothered by a standard delivery fee, but more by so-called "junk fees," which increase the final price of a delivery for no clear reason. In this particular case, the junk fee refers to a fee that Applebee's calls the CA delivery surcharge. While the name implies this is a fee enforced by the state of California, that's actually not the case at all. At the time of writing, the lawsuit is still ongoing, alongside another similar case filed in 2024 that relates to Applebee's use of "service fees" on its delivery orders.

It was evicted from Time's Square over debts

Applebee's is a huge chain. In fact, it has more than 1,450 locations in the U.S. as of 2026, and its parent company, Dine Brands Global, is worth around $400 million at the time of writing. See what we mean by huge? So, you might assume that a chain this size wouldn't have to worry about debts, but that's far from the truth.

In fact, in 2022, Applebee's was actually evicted from its prime location in New York City's Times Square because it owed some serious back rent — we're talking $7 million worth of back rent. According to the franchisee who ran this particular restaurant, the debts were accumulated during the pandemic.

The New York City spot isn't the only Applebee's to fall on hard times. In 2024, Louisiana Apple, an Applebee's franchisee, filed for Chapter 11 bankruptcy after it was sued by the City National Bank of Florida over debt. This time, it was more than $8 million worth. Yikes.

The watered-down margaritas

If you're heading to Applebee's, there's a good chance you're looking to indulge in a cocktail (ahem, as long as you're a legal adult, and not, say, 15 months old). The chain regularly likes to reel customers in with cocktail deals, and one of its most popular is the Dollarita, which is basically a margarita for $1.

In 2017, though, the chain received some backlash when one employee posted a video to social media revealing the drink was made with bottom-shelf tequila, margarita mix, and a heck of a lot of water. Oh, and they were mixing it all in a bucket on the floor. Many weren't all that surprised that a drink called a Dollarita would be made with cheap ingredients, but for some, the floor bucket was the final straw. "I dislike margaritas but what do you expect for a buck?" wrote one Facebook user. "My biggest problem is them having it on the damn floor! Ewwww. Margarita bucket. Check. Mop bucket. Check. Check." Another added, "I figured it would be bad but not that bad."

Dollaritas stirred up a fair bit of controversy in 2017. In the same year, some Applebee's employees in Maryland started walking out on the job due to unprecedented demand for the cheap cocktail, which left them completely overwhelmed. "No one was prepared," an anonymous employee told Tasting Table. They added: "People started quitting, because we're not getting compensated enough for the amount of work we're doing."

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