From what I've understood from talking to some of the managers and employees at the new Florence location they are experiencing more business at Florence than they had at Sheffield and the new restaurant can actually set more patrons than the Sheffield location. Many that I see there are walking across to the parking that is between the Wells Fargo Bank and the new Outback location. I think time will be the deciding factor of whether or not the move will be profitable for them.
Regarding IHOP, which is owned by Applebees (which may explain their choice of location) the real killer of the Florence IHOP was their management or lack of it. I can remember after it opened they never really settled in and wait times to be seated and actually served was outrageous and far exceeded what you would find at Cracker Barrel and definitely way more than Waffle House.
Many people believe that Outback should have left the Sheffield location open as well and maintained two locations but I personally like the new location but I do admit that parking is, at times, tough to find.