Franchise Directory

Feel like getting slammed for breakfast? The home of the Grand Slam Breakfast, Denny's is one of the leading full-service, family-style restaurant chains in the US, with about 1,550 of its signature eateries located across the country. Its family-style restaurants are typically open 24 hours a day, seven days a week, and serve breakfast, lunch, and dinner. The menu features a variety of breakfast items (which account for the majority of company sales) along with such standard fare as hamburgers, steaks, salads, and desserts. The company owns and operates about 400 of its restaurants, while the rest are franchised or operate under licensing agreements.

Denny's well-known name is a key factor in its ranking. The company is #23 on our list in terms of longevity; it's been in business since 1953 and franchising for 46 years. But the familiar family restaurants are making some big changes: In 2005, more than half of Denny's units were company-owned; currently, just over one-third are. This shift is part of an ambitious franchise growth initiative Denny's launched in 2007 to expand its franchises into key markets across the country. The company's goal is to sell its 353 company-owned stores to franchisees and to build new franchise locations. These changes have helped it earn a rank of #45 in system size.

Last year, Denny's streamlined its corporate headquarters and created four new regional VP of operations positions. These executives oversee both company and franchise locations within a given geographic region to help the restaurants improve profitability and sales. The emphasis is on building sales and brand awareness through local marketing efforts and innovation.
Part of the reason for the restructuring was to cut operating costs. Although the company's target customers have been hurt by the recession, its value-oriented menu and strong brand (it ranked #38 in Web visibility) are elements in its favor when it comes to surviving the downturn. Denny's has also worked to lower its outstanding debt, and its financial strength ranking of 98 is respectable.