Denny’s at a Strategic Crossroads Investor Returns vs. Customer-Centric Survival

 

Denny’s, one of America’s most recognizable diner brands, stands at a critical inflection point according to Steven Johnson Grocerant Guru® at Tacoma, WA  based Foodservice Solutions®. With more than 1,600 locations worldwide, the company benefits from its longstanding heritage, high franchise penetration, and brand familiarity. Yet, the dynamics of foodservice are shifting: inflation, generational preference changes, and rising labor costs challenge traditional casual dining models.

Let’s examine Denny’s through three lenses:

1. Attractive factors for activist investors.

2. Risks and barriers to investment.

3. Customer-focused insights from the Grocerant Guru.

Section 1: Six Reasons Activist Investors May See Value in Denny’s

1 All-Day Breakfast Leadership ‒ Over 60% of consumers want breakfast beyond morning hours; Denny’s has a defensible advantage.

2 Compelling Value Proposition ‒ 47% of diners cite 'value for money' as their top decision factor. Denny’s value menus meet this demand.

3 Late-Night Differentiation ‒ Nearly 20% of U.S. restaurant traffic occurs after 8 p.m., where Denny’s 24/7 model dominates.

4 Digital Growth Trajectory ‒ Off-premise dining makes up 25% of sales, growing double digits annually.

5 Franchise-Led Resilience ‒ 95% of restaurants are franchised, providing stable royalty streams with lower risk exposure.

6 Menu Innovation Success ‒ Limited-time offers drive repeated traffic spikes and brand engagement.

 

Section 2: Six Challenges That May Discourage Investment

1 Declining Guest Traffic ‒ Traffic erosion mirrors casual dining’s overall decline.

2 Generational Disconnect ‒ Only 18% of Gen Z see Denny’s as a preferred dining option.

3 Labor Model Vulnerability ‒ Staffing shortages threaten the 24/7 model’s viability.

4 Margin Compression at Franchisee Level ‒ Rising costs outpace pricing flexibility.

5 Competitive Encroachment ‒ QSRs like McDonald’s and Wendy’s expand into breakfast, squeezing Denny’s.

6 Capital Allocation Concerns ‒ Share buybacks prioritized over reinvestment in remodels and experience.

 

Section 3: Six Grocerant Guru Insights ̶ Why Customer Focus Outweighs Investor Priorities

1 Convenience as Core Currency ‒ Customers value availability over financial engineering.

2 Value Above Margin ‒ Affordable pancakes matter more to diners than investor-optimized margins.

3 Personalization over Standardization ‒ Diverse menu needs outweigh cost-cutting pressures.

4 Experience First, Efficiency Second ‒ The Denny’s 'third place' experience is culturally valuable.

5 Generational Relevance is Critical ‒ Winning Gen Z and Gen Alpha matters more than short-term EPS.

6 Dining as Lifestyle Identity ‒ Trust and cultural relevance precede sustainable shareholder returns.

 

Think About This:  Denny’s represents both opportunity and challenge. Its franchising model, value leadership, and brand recognition provide an attractive foundation. However, structural headwinds declining traffic, generational misalignment, and rising operating costs pose material risks to long-term investor returns. The Grocerant Guru’s perspective reframes the debate: sustainable shareholder value cannot be engineered without customer relevance. In the evolving food landscape, customer-centric reinvention must precede investor reward. Denny’s future depends on bridging its legacy with next-generation dining expectations.

Are you ready for some fresh ideations? Do your food marketing ideas look more like yesterday than tomorrow? Interested in learning how our Grocerant Guru® can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit: us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter

How restaurants should prepare for October & Halloween — food facts, fresh promos, and brand play that builds memories

 

October is where fall flavors, costume energy, and a hunger for experiences collide. For restaurants it’s not just a date on the calendar — it’s a seasonal opportunity to convert casual guests into ritual customers. Below is a practical, food-fact–filled guide to getting ready, five creative promotions each for kids, adults and families, a plain-English historical look at Halloween sales trends, and strategic guidance from the Grocerant Guru® on why brand messaging and consistency matter for long-term consumer memory.

 

Five outside-the-box promotions for kids (+ sample social posts)

1.       “Trick-or-Treat Table” — Kids collect mini-treats from five in-restaurant “stations,” finishers get a coupon for a future visit.
Social post:  “Tiny ghouls + big smiles! This Saturday our dining room turns into a trick-or-treat adventure. 5 stops. 5 treats. 1 free kids’ coupon at the end. Costumes encouraged! #FamilyFriendlyHalloween”

2.       Costume Kids’ Prix Fixe — Free kids’ entrée with any adult entrée when the child is in costume.
Social post:  “Calling all superheroes + witches! Kids in costume eat FREE with an adult entrée this weekend. One more reason to show off those costumes early!”

3.       Spooky Storytime & Mini-Menu — Short live story + themed brunch plates.
Social post:  “This Sunday: storytime at brunch! Bring your little monsters for a spooky tale + special ‘Monster Pancake Stack.’ Reservations recommended.”

4.       Pumpkin Pizza Kit to Go — DIY at home with pumpkin-shaped cutters.
Social post:  “Our Pumpkin Pizza Kits are back! Everything you need for spooky DIY pies at home. Limited daily availability — pre-order yours!”

5.       “Little Lab” Molecular Mocktails — Glittery mocktails in mini-beakers with a treat.
Social post: ✨ “Glow, fizz, sparkle! Introducing our new kids-only ‘Little Lab Mocktails.’ Served in mini beakers with edible glitter. Available all October.”

 

Five smart, memorable promotions for adults (+ sample social posts)

1.       “Boos & Brews” Flight Night — Beer/cider flights with small bites.
Social post:  “This Friday: Boos & Brews Flight Night. 4 fall ciders + bites = $15. Grab a crew and toast to spooky season.”

2.       After-Dark Prix Fixe: Theatrical Dinner — Immersive 3–4 course meal with a murder-mystery twist.
Social post:  “Dine if you dare… Our Murder Mystery Prix Fixe runs Oct. 27–31. 4 courses. One killer twist. Tickets limited.”

3.       Cocktail Lab Workshops — Small-group ticketed classes.
Social post:  “Learn the tricks + taste the treats. Join our Halloween Cocktail Workshop — make 3 seasonal drinks, take home recipe cards + your own shaker!”

4.       Haunted Happy Hour — Seasonal cocktails + small plates.
Social post:  “Haunted Happy Hour starts at 4 pm: blood-orange margaritas + pumpkin spice bites. Only until Halloween. #LimitedTime”

5.       Late-Night Comfort Menu — Post-trick-or-treat indulgence.
Social post:  “When the kids crash, the comfort comes out. Try our midnight mac + cheese grilled cheese after 9 pm. One week only.”

 

Five promotions aimed at families (+ sample social posts)

1.       Family Feast Bundle — Shareable entrees, sides, dessert platter.
Social post:  “Feed your whole crew: Family Feast Bundles for 4–6, packed with seasonal favorites + a dessert tray. Perfect before or after trick-or-treating.”

2.       Take-Home “Movie Night” Pack — Food, popcorn, candy + glow-sticks.
Social post:  “Dinner + movie night solved! Pick up our Halloween Movie Night Pack — pizza, popcorn, candy + glow-sticks. No stress, just fun.”

3.       Neighborhood Trick-or-Treat Partner Night — Stamp card for dessert.
Social post:  “We’re teaming with [local shop/street name]! Collect stamps while trick-or-treating, then redeem for a FREE dessert here. Saturday only!”

4.       Family Photo Booth + Dinner — Photos + props with meals.
Social post:  “Say boo! Our Halloween Photo Booth is free with dinner all weekend. Take a family snap + we’ll print it as a keepsake.”

5.       Seasonal Cooking Class for Parent + Child — Hands-on kits + recipes.
Social post:  “Cook together, laugh together. Parent + child Halloween cooking class — Oct. 20 + 27. Tickets limited. Includes take-home kit.”

Are you ready for some fresh ideations? Do your food marketing ideas look more like yesterday than tomorrow? Interested in learning how our Grocerant Guru® can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit: us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter

Mix & Match Meal Components: What’s Really for Dinner?

 

The way Americans plan and consume dinner has undergone a seismic shift. Meal planning no longer begins in the kitchen, but often in the aisle of a grocery store, the drive-thru lane, or on a smartphone app. According to Foodservice Solutions® Grocerant ScoreCards, 83.2% of U.S. consumers do not know what they’ll have for dinner by 11:30 a.m., and 64.7% are still undecided at 4 p.m. This uncertainty has given rise to a new consumer-driven food space: the grocerant niche.

Grocerant foods — fresh prepared, Ready-2-Eat or Heat-N-Eat meal components — have become the centerpiece of modern meal solutions. Today’s time-starved, choice-driven consumer is not simply looking for a single entrée but for customizable meal bundles that satisfy the diverse tastes of households while reducing preparation time.

This paper explores the rise of mix & match meal components, analyzes data-driven shifts in consumer behavior, highlights innovative retail and restaurant adaptations, and provides insights from Steven Johnson, the Grocerant Guru®, on where the industry is headed.

 

The Consumer Context: Time, Taste, and Customization

·       Time Scarcity: Nearly 71% of consumers say convenience influences their food choices weekly (Datassential, 2024).

·       Personalization Pressure: Families demand variety — one meal option rarely pleases all. 63% of households now prefer “meal kits” or “bundle options” where each member can pick their own side or entrée (NPD Group, 2023).

·       Quality Over Quantity: Shoppers are trading traditional pantry-stocking for immediate, fresh solutions. Fresh prepared food sales in U.S. grocery retail surpassed $34.8 billion in 2024 (NielsenIQ).

As Johnson explains:

“Today’s consumer isn’t just buying dinner; they’re buying time, choice, and control. Grocerant food components empower families to create restaurant-quality meals at home without the labor of cooking.”

 

From Supermarkets to Smartphones: Where Grocerant Food Lives

The grocerant movement has blurred the lines between restaurants and retailers. Consumers can now curate meals across channels, often within the same day.

Grocery Stores

·       Wegmans: Features mix & match hot and cold bars where consumers build plates or purchase à la carte.

·       Whole Foods Market: Beyond salads and sushi, Whole Foods’ in-store restaurants and pub concepts drive evening traffic.

·       Trader Joe’s: Pre-portioned Heat-N-Eat entrées and sides enable quick “home-assembled” dinners.

Convenience Stores

·       Wawa & Sheetz: Leading the pack with customizable sandwiches, bowls, and breakfast-all-day menus designed for portability.

·       7-Eleven: Expanding beyond pizza and taquitos to include healthier bowls, salads, and fresh wraps.

Restaurants

·       Olive Garden’s “Buy One, Take One” model doubles as dinner tonight and Heat-N-Eat tomorrow.

·       Panera Bread: Offers “Family Feast” bundles where sides and mains can be mixed across categories.

·       Fast Casual Chains (e.g., Chipotle, Cava, Sweetgreen): Functionally serve as grocerants by letting customers bundle modular components into balanced meals.

Non-Traditional Channels

·       IKEA: Sells over $2 billion annually in fresh prepared meals, with Swedish meatballs as a cultural icon.

·       Walgreens & CVS: Increasingly integrating grab-and-go salads, sandwiches, and heatable meals.

·       Nordstrom & Macy’s: Using in-store restaurants and cafés to drive dwell time and incremental food revenue.

 

The Grocerant Marketing Advantage

Grocerant solutions succeed by tapping into the 5 P’s of Food Marketing developed by Foodservice Solutions®:

1.       Product – Fresh, flexible meal components (protein, sides, snacks).

2.       Packaging – Attractive, portable containers that maintain “restaurant-quality” appeal.

3.       Placement – Visibility across multiple touchpoints (deli counters, apps, delivery).

4.       Portion – Mix & match sizing for individuals or families.

5.       Price – Value-focused bundles versus traditional à la carte menus.

Johnson notes:

“The retailer who best integrates the 5 P’s creates not only food sales, but a food ecosystem — one where the consumer feels empowered to assemble their perfect meal, anytime, anywhere.”

 

Consumer Insights: Why Grocerant Food Wins

·       Impulse-Driven Behavior: With meal planning starting at 4 p.m., grocerant offerings capture last-minute purchase intent.

·       Portability: 54% of consumers say they eat at least one meal per week away from home but not in a restaurant (Technomic, 2024). Grocerant foods are designed to move.

·       Health & Wellness: Fresh prepared components allow for better portion control and dietary flexibility compared to traditional QSR combos.

·       Generational Shifts: Millennials and Gen Z are leading the demand for customization, with 72% saying they value “meal choice diversity” over traditional family-style dining (Hartman Group, 2023).

 

The Future of Mix & Match Meals

As consumer demand evolves, expect continued innovation:

·       AI-driven personalization in grocerant apps recommending bundles by household preferences.

·       Cross-channel loyalty programs rewarding bundled purchases (e.g., a salad at Whole Foods, dessert at Starbucks, entrée from Panera).

·       Packaging technology that improves reheating and maintains “plated quality” appeal.

·       Expansion into new retail verticals — furniture, bookstores, and even sporting goods stores testing grocerant integrations.

Johnson’s closing insight:

“The question is no longer ‘What’s for dinner?’ The question is, ‘Where will I curate tonight’s dinner from?’ Grocerant retailers who anticipate that shift will own the future of food.”

 

About Foodservice Solutions®

Foodservice Solutions®, led by Grocerant Guru® Steven Johnson, is a leading authority on grocerant trends, consumer food behavior, and retail food strategy. Through its proprietary Grocerant ScoreCards and the 5 P’s of Food Marketing, the firm has helped retailers, C-stores, restaurants, and non-traditional outlets evolve their offerings for the convenience-driven consumer.

Learn more at:
🌐 www.FoodserviceSolutions.us
🔗 LinkedIn.com/in/grocerant
🐦 twitter.com/grocerant