Denny’s Expands Youth-oriented Menu
Quick service restaurant chain Denny’s is expanding the
discount menu items it offers as part of its
Allnighter program designed to attract young adult customers ages 16-24 between the hours of 10 PM and 5 AM.
According to QSR Magazine, the new menu items include breakfast dishes such as pancakes and scrambled eggs with ham, as well as appetizer items such as nachos and buffalo chicken wings. Denny’s serves a full breakfast, lunch and dinner menu, but is best known for serving breakfast all day.
Denny’s launched the Allnighter program in 2008. It features discount menu items, alternative rock music, and an interactive “Adopt-a-Band” program that allows members to vote for underground rock bands that participate in special Denny’s events and other promotional tie-ins.
Denny’s is expanding its Allnighter menu shortly following rival breakfast-oriented quick service restaurant chain IHOP’s opening its
first Vermont location, giving IHOP at least one restaurant in all 50 U.S. states. IHOP, a subsidiary of DineEquity, saw systemwide
store sales increase 1.5% in fiscal 2008. IHOP’s franchise segment opened 71 new restaurants in the U.S., Mexico and Canada during 2008, contributing to revenue growth of 5.6% and profit growth of 7% in Q4 2008. DineEquity forecasts same-store sales ranging between -1 and 1% during fiscal 2009, with 55 to 65 new U.S. franchise locations opening.
In comparison, Denny’s saw adjusted income before taxes
increase 120% during fiscal 2008, although same-store sales and net income decreased. Denny’s opened 31 new franchised restaurants and three new corporate restaurants during the year, and reported total operating revenue of approximately $760 million. At the end of 2007, Denny's operated 1,152 franchised restaurants and 394 corporate restaurants in the U.S.and six other countries and territories. During 2009, Denny’s expects to open 30 new franchised and three new corporate restaurants, with same-store sales increasing. Denny’s does not break out separate financial figures for its Allnighter program.
By trying to attract a younger audience through promotional tie-ins with musical performers, Denny’s is engaging in a trend that department store operator
Kohl’s and vertical shoe retailer
Brown Shoe Company have also followed. However, results from a December 2008
Gallup survey of U.S. consumer restaurant habits show that 62% of adults age 18-29 reported eating out in the past week, compared to 81% in December 2005. No decline was reported in any older adult groupings. Results are based on telephone interviews with 1,009 national adults, aged 18 and older, conducted December 4-7, 2008.
