In 1980, Bill and T. J. Palmer established the Applebee's chain. Their goal was to build a restaurant with a neighborhood pub atmosphere that could provide amiable service and high-quality food at prices that were competitive with most of their rivals. They initially intended to call their idea "Appleby," but they discovered that it had already been registered. Prior to going to Applebee's, they also thought about "Cinnamon's" and "Pepper's."T.J. Applebee's Rx for Edibles & Elixirs was the name of the first location they opened, which was in Atlanta, Georgia. A few years later, they opened a second site outside of Atlanta, Georgia, and in 1983 they sold the business to W. R. Grace and Company. Bill Palmer was appointed president of the Applebee's Division, a W. R. Grace & Company indirect subsidiary, as part of the deal. In that role, Palmer oversaw the company's growth from its start-up phase to a fully developed franchise network. In 1985, he acquired an Applebee's franchise. 2020 saw Bill Palmer's passing.The concept's name was changed to Applebee's Neighborhood Grill & Bar in 1986. When Kansas City franchisees Abe Gustin and John Hamra bought the rights to the Applebee's idea from W. R. Grace in 1988, Applebee's International, Inc. took over as the chain's franchisor. In Nashville, Tennessee, Applebee's launched their 100th location. After starting its public trading in November 1991, Applebee's grew to become one of the biggest sit-down restaurant chains in the country in the 1990s. The 1000th Applebee's restaurant opened its doors in 1998.

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