IHOP CORP. / Glendale, California Restaurateur Looks To Spice Up The Batter.(THE NEW AMERICA)

Byline: Adelia Cellini Linecker

Richard Herzer wants to turn IHOP Corp. into more than a pancake house, but he admits it's not the world's easiest job.

Herzer is IHOP's chief executive. He's spent the past eight years trying to convince franchisees it's worth their time and money to market IHOP's menu beyond breakfast fare.

But there are a couple of problems. First off, the company name stands for International House of Pancakes -- something that doesn't exactly conjure up images of lunch or dinner. Then there's the fact that most franchisees are skittish about changing a formula with proven results.

"We've tried time after time, but most franchisees are not interested in becoming more than a breakfast place," Herzer said.

It's hard to blame them. More than 75% of IHOP's 978 restaurants are franchised, and each franchise averages about $1.7 million in annual sales. Franchises pumped $49.7 million into company coffers during the first quarter, up 11% from last year. Same-store sales grew 1.6%.

The company's annual earnings have grown 16% on average over the past five years despite the up-and-down nature of the restaurant business.