Denny’s CEO John Miller is excited about the company’s growth potential, particularly its Heritage remodeling program aimed at providing an enhanced customer experience at company restaurants.
Denny’s launched its Heritage remodel program late last year and enhancements and the atmosphere at company restaurants is “one of the drivers” to growing sales, Miller said Monday during the third-quarter financial results conference call according to a Seeking Alpha transcript.
“For the first three quarters, we have completed 129 remodels, results have been positive with increases in same-store guest traffic coming at all day parts with dinner seeing the strongest lift,” Miller said. “We believe that we are still early in our brand revitalization process and are pleased with our momentum. We remain focused on differentiating Denny’s in the crowded marketplace by successfully executing on our key objectives to further strengthen our position as America’s favorite diner in 2014 and beyond.”
Denny’s has remodeled 38 of its company restaurants through the first three quarters of this year, with the goal of completing about 45 by the end of the year.
“Due to strong performance, we will continue to accelerate remodels at the company restaurants with the target of completing 45 to 50 remodels in 2015,” Miller said. “We continue to look to our guest to guide us in our ongoing efforts to improve our menus and to meet the needs of an ever-changing marketplace.”
For the third quarter, Denny’s recorded its best systemwide same-store sales in the past 2 ½ years while company restaurants achieved the highest quarterly same-store sales increase in the past eight years.
“Achieving these results, despite the ongoing challenging economic environment for many of our customers, is a testament to the progress we have made in our brand revitalization thus far,” Miller said. “While we are looking to elevate our product offerings in certain areas, we’re just as focused on finding ways to enhance margins and improve operational execution.”
At the start of the third quarter, Denny’s rolled out a new core menu which included two premium sandwich entrees with new high quality 7-grain bread in addition to over 20 other menu changes for simplification and for margin improvement.
Miller said Denny’s Greatest Hits Remixed limited-time only menu leveraged existing entrees, such as the Super Bird, Moons Over My Hammy, and Red, White & Blue Slam, which greatly simplified station prep and line build complexity and enhanced operational execution.
In the fourth quarter, Denny’s limited time only menu introduces seasonal and holiday flavors into its Build Your Own Grand Slam with check building, premium options like Pumpkin Pancakes and Gingerbread French Toast.
“Recently, Denny’s was featured in the second episode of TNT’s ‘On the Menu’ cooking show, starring Ty Pennington and celebrity chef Emeril Lagasse,” Miller added. “The debut season features eight brands and eight episodes. And we’re pleased to have secured the only family dine position on the show providing Denny’s a great opportunity to showcase our revitalized brand. The winning dish, which was an Apple Danish French Toast with chorizo hash, demonstrates our growing confidence and our ability to provide our guests with more relevant and more premium products to meet their needs.”