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Denny's Concept Benchmark Analysis
Restaurant Research, LLC, March 2011, Pages: 11
The country’s largest family dining chain continues to progress with a turnaround that has included: (1) a complete management overhaul; (2) successful new marketing which has driven sales and traffic of its popular new value menu and; (3) accelerated development in connection with its Flying J/Pilot Travel Centers partnership. So far, it seems that the brand’s turnaround has stemmed the system’s decline but it now remains to be seen how brand leadership will jump-start margins at the unit level which we believe may be poised to fall to 2008 levels this year. Given the brand’s orientation towards the working class and seniors, it seems to us that value will by necessity remain a key marketing message for this brand.
Resultantly, Denny’s must adapt by learning how to squeeze blood from a stone while also seeking to expand its customer base to include the more affluent (perhaps not so easy for a family diner with low customer quality ratings). In any case, we like what we see so far in terms of the brand’s turnaround even if the chain’s secular challenge maybe formidable in nature.
Analysis of the Denny's restaurant concept provides readers with unique data and insight into this leading brand.
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