The Challenge is to Staff & Operate Late Night

Nov 7, 2022 | Corporate Insights, No Bull Economics

Banner

Denny’s orientation towards the struggling lower-income demo was evident by a relatively low +1.5% same-store-sales increase during 3Q22. Of this, +7% was driven by menu price increases and +2% from a product mix improvement which was offset by a -7.5% traffic decline. Corporate did report that its traffic trends began to improve along with consumer confidence & consumer sentiment in August helped by Denny’s effective value equation & messaging. We would point out that this recovery is consistent with a decline in gasoline prices (which has been so influential on the lower-income demo) during this period.

Denny’s noted that its sales have been suppressed by the staffing challenge to restore its operating hours to pre-covid levels. In particular, the chain is working hard to increase the percentage of its system open 24/7 from 60% currently to 90% expected by 2023 (helped by franchisor financial incentives to encourage franchisees to implement this sales driving strategy).

Corporate reported industry stats that 30% to 40% of FSR units have failed to return to late-night operations and pre-covid operating hours.

Denny's 3Q Financials
Denny’s 3Q Financials

Follow us on LinkedInTwitterFacebook, and YouTube!

Disclaimer of Liability
Signup
NoBullEconomics
Restaurant Research

Email Sign-up

15 Second Posts

We Have a Plan to Rescue the US Dollar

While NoBull’s simple 1% Plan to fix America’s deteriorating financial condition will not cure our condition overnight, it could buy us some time by setting the U.S. dollar on a firmer foundation.  

A Run on the Fed?

The Fed has crushed its own bond portfolio by hiking interest rates. Maybe there will not be a run on the Fed, but perhaps we should be more concerned about a run on the US$.

China Schools the US on Morality

Must read: China lectures about U.S. Hegemony & Its Perils. Maybe China would prefer if it had hegemony instead? Some classify this diatribe published in February 2023 as an informal declaration of war.

What is Going on with the Banks?

The frailty of the banking system has come front & center over the last couple of weeks as more secondary, unintended symptoms develop from the Fed’s race to raise interest rates.

Powell Faults an Overheated Labor Market for the Need to Hike Rates Again

Despite growing evidence of systematic bank risks associated with the Fed’s aggressive rate hikes over the last year, Powell hikes another 25 bps anyhow, citing labor pressure as the culprit. However, in the real world, labor conditions are already improving.

Fixed-Income Issuance Says a Lot About Economy

Total U.S. fixed income (FI) issuance declined -34% y/y to $8.8 trillion during 2022 as interest rates ramped up.

Bank Deposits Growing Much Faster than Business Loan Demand

Banks have been parking excess deposits in various forms of government debt that are subject to interest rate risk & in some cases, risky crypto bets. This is causing systematic risk.

Nerdwallet Survey Shows an Indebted & Very Stressed Consumer

Consumers are combating the higher price of living & higher interest rates by driving less, buying store brands & taking on more debt.

The United States of America is Worth Saving

Americans need to be reminded about our heritage as the single most productive nation as measured by GDP/person with a unique capability to bless the entire world if we can simply get back to business.

Should Private Banks Go Extinct?

Since the 2008 Great Recession, 134 banks with assets of $1.25 Trillion have been closed by regulators. At the same time, the Fed’s ballooning balance sheet now amounts to nearly 50% of total domestic bank deposits.

Digital Marketing Opportunities
Restaurant Research

A Restaurant Research LLC Company