Denny’s Knows Breakfast and Keke’s is Set for Success

 

For over seven decades, Denny’s has been a household name, synonymous with breakfast served all day and late-night bites after the game, the shift, or the drive. In a world where breakfast is no longer confined to early risers or truck stops, Denny’s has earned its place in America’s culinary rhythm. Yet today, with consumer dining habits shifting toward convenience, freshness, and discovery, the grocerant niche is thriving — and that’s exactly where Keke’s Breakfast Cafe steps in.

Steven Johnson the Grocerant Guru®, at Tacoma, WA based Foodservice Solutions® has long advocated that successful growth comes when brands marry authenticity, operational know-how, and a strong consumer value proposition. Keke’s, under the wing of Denny’s, is now poised not just for growth — but for transformational growth in the family-dining sector. Here’s why:

 

Five Reasons Keke’s Will Be a Growth Driver for Denny’s

1. Brunch-Forward Format with a Purpose
Unlike legacy full-service chains struggling with labor and margin issues across long hours, Keke’s operates on a tight 7 a.m. to 2:30 p.m. schedule. This format taps into the booming daytime dining trend. The benefit?

·       Lower labor costs

·       Higher quality execution

·       Enhanced employee satisfaction and retention

It’s no surprise that top-tier staff are more likely to stick around when they can serve breakfast, earn tips, and pick up their kids before school’s out.

2. Menu Integrity Meets Modernization
While the core menu has stayed true to its roots — scratch-made omelets, fresh-cut fruits, and no microwaves — Keke’s evolution includes alcoholic brunch beverages, a new kids’ menu, and select menu innovations. This balance ensures loyal customer retention while expanding appeal to brunch-centric Millennials and Gen Z.

3. Scalable with Experienced Operators
Denny’s franchise network brings proven operators into the fold, giving Keke’s a launchpad in new and challenging markets. That synergy is critical. Keke’s isn’t going it alone — it’s piggybacking off decades of franchise experience, real estate insight, and operational structure. This will fast-track expansion and reduce the trial-and-error phase.

4. Exceptional Operational Discipline
A Google review score of 4.85 across the system speaks volumes. Quick turns (38-minute average), high service scores, and strong execution indicate tight systems and strong in-unit leadership. That sets Keke’s apart in a segment where speed, cleanliness, and food quality drive repeat traffic.

5. Off-Premise Growth, Grocerant Style
Keke’s is finally embracing the grocerant trend — investing in takeout packaging, staffing, and marketing to support off-premise orders. With off-premise sales now in the high teens and climbing, this shift aligns perfectly with Gen Z and Millennial lifestyles that crave restaurant-quality food enjoyed at home.

 

How 'Discovery' Will Win Over Gen Z and Millennials

The concept of food discovery is one of the most powerful motivators for younger diners. They’re not just buying a meal — they’re chasing an experience, a moment, or a story. Here’s how Keke’s taps into that:

1. Origin Story with Personality
The brand name itself — Keke’s — is a mashup of founders Kevin and Keith. Authenticity like that resonates with younger consumers seeking real stories, not manufactured brand myths.

2. Regional Menu Twists
With its cheesesteak omelet nodding to the founders’ Philadelphia roots, Keke’s offers localized flavor with national relevance. That kind of culinary wink appeals to digital-savvy foodies eager to share “what’s new” in their feed.

3. Aesthetic and Instagram-Ready Plates
Keke’s plating — vibrant fruit, fluffy pancakes, bright Bellinis — is already built for Instagram and TikTok. Their investment in restaurant design updates only enhances the social shareability that drives trial among Gen Z.

4. Alcohol as an Occasion Builder
Brunch beverages like sangrias and peach Bellinis turn breakfast into a social event. For Millennials, brunch is often a lifestyle ritual. Keke’s now offers the affordable indulgence that fuels Saturday and Sunday get-togethers — a powerful repeat traffic generator.

5. Digital Discovery through Marketing
Keke’s has just begun digital marketing, but its potential is massive. Millennials and Gen Z don’t discover brands through billboards — they find them through reels, influencer posts, and online reviews. Keke’s brand tone, clean food story, and retro-chic aesthetic are built to thrive in digital spaces.

 

Think about this from the Grocerant Guru®

In today’s food landscape, breakfast isn’t just the most important meal of the day — it’s one of the most profitable. With Denny’s acting as both parent company and strategic mentor, Keke’s has the infrastructure, product integrity, and consumer alignment to scale nationwide.

This is not just a growth story. It’s a relevancy story.

As the lines between grocerant, restaurant, and fast-casual continue to blur, Keke’s Breakfast Cafe is serving up more than pancakes. They’re dishing out relevance, discovery, and choice — just the way Gen Z and Millennials like it.

And in the end, Denny’s isn’t just growing a new brand — it’s future-proofing its breakfast dominance.

Steven Johnson is the Grocerant Guru® at Foodservice Solutions®, a Tacoma, WA-based consultancy specializing in the grocerant niche: Ready-2-Eat and Heat-N-Eat fresh prepared food.

Denny’s: Surviving Where Other Family Restaurants Have Fallen

 

Over the past several decades, the American family restaurant landscape has drastically changed. Once-dominant players have either shuttered their doors or faded into obscurity. Yet, amidst the turmoil, Denny's has managed to endure, a testament to its adaptability and understanding of shifting consumer habits, according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. To fully appreciate Denny’s resilience, we must explore why many of its competitors have vanished and why Denny’s remains a staple in the dining industry.

Family Restaurant Chains That Have Disappeared or Are Nearly Gone

1.       Howard Johnson’s: Once a beacon of the American highway, Howard Johnson’s was synonymous with family dining in the mid-20th century. With its bright orange roofs and standardized menu, it catered to families on road trips. However, as fast food chains gained traction in the 1970s and ’80s, offering quicker service and cheaper meals, Howard Johnson’s couldn’t keep up with evolving consumer demands. The rise of more affordable, flexible dining options led to its eventual decline.

2.       Shoney’s: Known for its family-friendly vibe and buffet-style offerings, Shoney’s thrived in the 1980s but struggled with stiff competition from faster, more affordable chains like Cracker Barrel and Golden Corral. Franchise mismanagement and an inability to modernize its brand to appeal to younger consumers accelerated its near extinction.

3.       Chi-Chi’s: This Mexican-themed family restaurant had its heyday in the 1980s and early 1990s. However, a combination of health scares and a lack of menu innovation left it vulnerable to competition from more authentic Mexican chains and fast-casual giants like Chipotle. A fatal hepatitis outbreak in the early 2000s dealt the final blow.

4.       Friendly’s: Known for its ice cream and casual dining, Friendly’s was a staple for families throughout the Northeastern U.S. But as consumer tastes shifted toward healthier options and fast-casual dining, Friendly’s couldn’t keep pace. Financial struggles, coupled with numerous restaurant closures, have left the brand a shadow of its former self.

5.       Village Inn: While it still exists in some areas, Village Inn has seen its market presence shrink considerably since its peak in the 1980s. Declining interest in traditional sit-down dining, coupled with a failure to adapt to the convenience-focused dining landscape, has pushed this family restaurant to the margins.

6.       Sambo’s: Once a popular family restaurant chain, Sambo’s fell victim to controversy over its racially insensitive branding and marketing. Despite attempts to rebrand, the damage to its reputation was irreversible, and the chain ultimately collapsed.

Why Denny’s is Still Here: 7 Reasons for Its Endurance

1.       Adaptation to Consumer Trends: Denny’s has shown an uncanny ability to evolve with consumer preferences. From embracing healthier menu options to expanding its offerings for various dietary needs, such as gluten-free and vegan choices, the chain consistently adapts to the changing tastes of its clientele.

2.       24/7 Availability: One of the biggest competitive advantages Denny’s offers is its around-the-clock service. The 24/7 operating model has long been a key differentiator, capturing the late-night and early-morning dining crowd that other chains overlook. Whether it’s a 3 AM breakfast or a midnight snack, Denny’s remains a go-to option.

3.       Menu Diversity and Affordability: Unlike many of its failed competitors, Denny’s has maintained a diverse menu that appeals to a broad demographic. From breakfast all day to hearty dinner options, its offerings cater to both traditional family diners and late-night millennials. Importantly, Denny’s has managed to keep prices affordable, ensuring it remains a budget-friendly choice in an increasingly competitive market.

4.       Strong Brand Recognition: Denny’s iconic status as a quintessential American diner gives it a nostalgic appeal. Over the years, the brand has cultivated a loyal customer base who associate it with family dining and comforting meals. The consistent branding has helped the chain weather storms that other family restaurant chains could not survive.

5.       Strategic Innovation: Denny’s has been forward-thinking in embracing digital technology and delivery options. Its “Denny’s on Demand” initiative, launched in 2017, enabled customers to order online for pickup or delivery, making the brand more accessible in an era where convenience reigns supreme. This move was critical in attracting a younger, tech-savvy customer base.

6.       Loyalty Programs: The “Denny’s Rewards” program is another key reason behind the chain’s continued success. By rewarding repeat customers with discounts, promotions, and personalized offers, Denny’s has cultivated a loyal following that keeps customers returning.

7.       Flexible Dining Formats: Unlike its competitors, Denny’s has embraced a range of dining formats, from sit-down service to takeout and delivery. During the COVID-19 pandemic, the chain quickly pivoted to enhance its off-premise dining capabilities, including curbside pickup, which helped it navigate the challenging period while many other family chains struggled to adapt.

Think About This

Denny’s survival amidst the collapse of other family restaurant chains is no accident. Its ability to adapt, innovate, and maintain brand relevance over the decades has kept it afloat while others have floundered. The fall of chains like Howard Johnson’s and Friendly’s demonstrates how quickly consumer preferences and market conditions can shift, but Denny’s continues to evolve, ensuring that its booths will remain filled for years to come.

Do your food marketing tactics look more like yesterday than tomorrow?  Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may have the clue you need to propel your continued success.

Restaurant Chains, Buying Growth Works

 

When a restaurant chain had been in a specific sector as a leader for 50+ years you understand the sector, the competition, the customer, and compliancy. The consumer is dynamic and chain restaurants need to be as dynamic as consumers according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

There can be no doubt that Denny’s recent acquisition of a complementary daypart restaurant concept is a great move, and will provide incremental top line growth and bottom-line profits, while edifying Denny’s knowledge of the daypart insights even more according to Johnson.

Denny’s CEO Kelli Valade, stated, “The A.M. Eatery segment is fast-growing and Keke’s is a brand with attractive unit economics and strong potential,” In short it is a platform for growth!

So, average unit volumes at Keke’s 44 franchised and eight company-owned restaurants are about $1.9 million, and the chain’s price points are about 20% higher than Denny’s. The company appeals to high-income Gen Z and millennial consumers and families with kids.  Enough said!

In case you did not know, Keke’s recorded same-store sales increases of 18% during 2021 versus 2019, Denny’s executives said during a May earnings call. As of May, same-store sales were up 12% year-to-date versus 2021. Adjusted EBITDA contribution is expected to be between $6.5 million and $7 million, executives said. 

The breakfast concepts have done well in recent quarters. First Watch, for example, posted similarly robust same-store sales growth during Q1 2022, with same-restaurant sales increasing 27.2% and same-restaurant traffic increasing 21.9%, according to an earnings release. First Watch, which went public last year, aims to grow from over 420 units to 2,200.

 

1. Denny’s completed its $82.5 million acquisition of Keke’s Breakfast Cafe, which has 52 units across Florida, the company announced Wednesday. 

2. Denny’s used cash on hand as well as funds from a revolving credit facility to purchase the chain. 

3. Keke’s will operate independently from Denny’s and maintain its own leadership, strategies, products, marketing, operations and development initiatives.

Success does leave clues. One clue that time and time again continues to resurface is “the consumer is dynamic not static”.  Regular readers of this blog know that is the common refrain of Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Our Grocerant Guru® can help your company edify your brand with relevance.  Call 253-759-7869 for more information. 

Building a Larger Share of Stomach

Denny’s Digital Dining will Drive Growth

 

Sometimes growth is overshadowed by survival and family dining chain Denny’s known for great breakfast has been hit hard, preliminary domestic same-store sales results for the COVID-19 pandemic year were down 31%. Pancakes just don’t travel well most customers must believe.

Denny’s has a corporate staff loaded with industry knowledge, ability, and a marketing skill-set that equals any chain restaurant in the U.S. today according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

If you have talent, put it to work, and let it drive success, according to Johnson that exactly what Denny’s Corp. did.  Now Denny’s is testing two virtual brands that it plans to expand in 2021 and they “focus on burgers and melts,” something they know a lot about. 

Denny’s operators have been testing the two new virtual offerings, said John Miller, Denny’s CEO, in a statement, “Both concepts have shown promising results in testing and each is expected to be launched in the first half of fiscal 2021 in over half of Denny’s domestic restaurants,”

Looking a customer ahead, looking for growth, virtual brands will drive greater operational efficiencies, top line sales, and bottom-line profits according to Johnson. Denny’s deep marketing insights will provide valuable date points to drive incremental success.  It will pay dividends to keep an eye on Denny’s marketing messaging and their new virtual brands.

Battle for Share of Stomach

Miller went on to say, “With increasing distribution of vaccines, newly passed fiscal stimulus that should benefit our franchisees and the ongoing resolve of our operators, I am confident that Denny’s is well-positioned to continue navigating through the pandemic in an effective manner while preparing for future growth,”

Don’t do nothing, empower your team, look a customer ahead. Miller stated, “to be impressed with how resilient and steadfast our teams are in their commitment to serving our guests. Denny’s operators have maintained a dedicated focus on health and safety protocols while embracing innovative solutions such as curbside ordering, outdoor dining where permitted and testing two new virtual brands in an environment challenged by mandated restrictions.”

Where will your brand find customer relevance? If the customer moves are you willing to move with them?  Does your brand look more like yesterday, than today’s brand, or tomorrows? What consumer touchpoints can you edify moving forward? Here are two word we all learned in school.  Operational Efficiencies use your education, skill-set to drive top line sales and bottom-line profits.

Invite Foodservice Solutions® to complete a Grocerant Program Assessment, Grocerant ScoreCard, or for product positioning or placement assistance, or call our Grocerant Guru®.  Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869

Denny’s CEO’ and the Hypocrisy of Do No Harm

The retail landscape denial at Denny’s by the CEO John Miller simply mirrors restaurant industry trade magazines last gasp at retaining a following while denying that restaurant sector brand protectionism has become boring, yesterday’s news, and a food positioning disadvantage for consumers according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Consumers are dynamic not static.The fact is consumers are moving from the restaurant sector where company after company touts their brand power all the while year over year customer counts continue to dwindle.

Regular readers of this blog know consumers are migrating from the restaurant sector to C-store foodservice that is expected to grow another 6% in 2019. They are also going to new points of fresh food distribution the ilk of IKEA, Nordstrom, Ralph Lauren, and Club Store Costco as fresh food and coffee as preferred destinations. O’ yes recently legacy grocery sector service deli’s with redefined missions have elevated meals and meal components from bucks to fresh prepared food garnering customers.  

So, let’s look at what Denny’s CEO said and you will then get our view.  Miller said:

1.  Grocery stores like Whole Foods and Kroger have restaurants 'beating each other's brains out'

2.   Restaurants are competing to keep prices as low as possible and offering more deals, even as labor costs rise.

3.  "We're beating each other's brains out," Denny's CEO John Miller said of the restaurant industry's attempts to undercut rivals' prices.

4.Low grocery prices are contributing to restaurants' drive to keep prices cheap.

The fact is Denny’s and most U.S. legacy chain restaurants including the ilk of TGI Friday’s, Olive Garden, McDonald’s, Wendy’s, Carrols, Burger King and Pizza Hut look a lot like they did in 1989 than with the exception of a new furniture, paint, some technology that was add late in the cycle much still frustrates consumers according to Johnson.

Restaurant sectors CEO’s moto of do no harm has created a retail platform of yesterday, lacking the attributes of an evolving consumer.  Restaurant sector CEO’s are not “beating each other’s brains out” as Miller said.  They simply are acting like Neanderthals doing what they did in 1980, 1990, and 2000 and expecting that business model to work.  Customers have move on.  Today’s restaurant sector needs to evolve with a customer focus not a focus on Wall-Street metrics of the past according to Johnson.

All the while over-priced C-stores have put the roller grill on the back burner, lowered prices, introduced fresh food fast, at competitive price garnering consumers attention driving incremental customer migration from both the grocery sector and restaurant sector. 

The consumer price, service, value equilibrium has evolved the problem with many in the restaurant sector they are raising prices on yesterday’s products, refusing to innovate, rather than evolve their brands with customer relevance they continue to practice brand protectionism.

Our Grocerant Guru® has spoken at leading restaurant industry events including MUFSO, NRA and the National Restaurant Show has a ‘NRA Grocerant’ section.  Restaurant sector leader are well aware of the undercurrents of the evolving retail food market place.  However, it is easier for a Restaurant sector CEO to blame someone else or a competitor than to drive change within an outdate labyrinth of a legacy chain restaurant apparently.

The grocerant niche products and service provide the restaurant sector with a platform of options to deal with an impending increase in the minimum wage, for product stagnation, day-part customer malaise, and edifying the brand with customer relevance.

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit Facebook.com/Steven Johnson, www.Linkedin.com/in/grocerant/ or www.twitter.com/grocerant/

Dinning with Denny’s Daily Delivery

Back in the day Denny’s was breakfast for our family on weekends, the place to stop when the family was on a road trip, and while in college the after-hours hot spot.  Denny’s is all that today but now they are closer to home than ever. 

Denny’s  now is delivering meals embracing the off-premise boom dinning boom or as Tacoma, WA based Foodservice Solutions® Grocerant Guru® called it the 65 inch HDTV syndrome. Denny’s new integrated ordering platform allows guests to place an order for takeout and delivery through its website, app, or by using a variety of social media options.

Denny’s CMO John Dillon  stated “The launch of ‘Denny’s on Demand’ is the result of our commitment to leveraging new technology to reach a wider audience and make it even more convenient for today’s virtually-connected guests to enjoy their favorite diner dishes,”

Denny’s have gone a bit further than other restaurant chains as they are also launching a line of custom-designed microwaveable takeout packaging made from sustainable materials that is branded with Denny’s tweets.

Expanding the brand Denney’s integrated marketing messaging will promote the new ordering option, it's partnering with Hulu to offer diners a 60-day free trial of the streaming service after they place an order using the new system, and encouraging fans to share their Denny’s on Demand experience using custom Snapchat filters as well.

Denny’s customers will be able to order delivery (where available) or takeout 24/7, 365 days a year, from the brand’s revamped mobile app or through Dennys.com, and guests will be able to choose pickup or delivery times and track their orders.

The chain will also utilize a new online ordering option through Twitter, where diners can select and order favorite dishes by using direct messaging services. Patrons can use a branded chatbot on Facebook as well. Denny’s on Demand will rely on third-party deliverers such as GrubHub and DoorDash.

Interested in learning how Foodservice Solutions 5P’s of Food Marketing 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:  www.FoodserviceSolutions.us for more information.