Brand loyalty is a very good thing for any marketer. At Denny’s, customers have shown and continue to show their brand loyalty and are engaged with the company.
For Denny’s CEO John Miller, the organization’s topline and profitability growth was primarily driven by achieving the highest quarterly same-store sales at both company and franchise restaurants in more than a decade.
“Our same-store sales have continued their steady growth,” Miller said during Monday’s first-quarter earnings conference call, according to Seeking Alpha. “We now have achieved positive comparable sales, 15 over the last 16 quarters, and our expectations for 2015 point to the trend continuing. The execution of our brand revitalization strategy focused on improving the food, service, and atmosphere of our restaurants and that positions Denny’s to benefit from the improving consumer economic environment. Our success is a testament to dedication and hard work from countless individuals delivering the Denny’s diner experience every day.”
Denny’s growth in guest traffic demonstrates “how we’re truly benefitting from solid execution of our initiatives to deliver a differentiated experience making the brand more relevant every day with every shift and to every guest,” Miller said.
Miller said the product mix improvements include a more profitable $2 $4 $6 $8 Everyday Value Menu.
“In the quarter, we saw guests move away from value as the incidence rate of the $2 $4 $6 $8 Everyday Value Menu decreased by 300 basis points compared to the prior year quarter,” he explained. “In addition, guests are ordering more appetizers and higher price premium entrees on our core and limited timeline menus. We’re doing a better job of meeting our customers’ expectations through our better menu offerings, execution of service standards, and messaging. Our core menu showcases a number of fresh ingredients with more pictures and opportunities for up-selling.”
What’s more, Miller said Denny’s continues to look at enhancements in its media and in-store merchandizing efforts with new partnerships.
“We’ve launched a new kids menu in partnership with DreamWorks Animation to feature characters like Shrek and the Penguins of Madagascar,” he explained. “We’ve also teamed up with NASCAR Star Denny Hamlin to reach race fans across the country. Our social media investment continues to grow and we’re a leader in connecting with millennials as measured by our cloud score. The grand slam video series has generated over 15 million completed views. In a crowded marketplace, these efforts help keep Denny’s name at top of mind and create a connection with the brand.”