Family Dining

Denny’s 2022

Denny’s 2022

While Denny’s management team is executing well around a very solid strategy, the brand is held captive to currently unfavorable economic conditions which are particularly hard on its core low-income demo and which also challenge Denny’s ability to execute around its key price value objective.

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Denny’s

• Denny’s unique “America’s Diner” brand positioning provides the promise of everyday value with craveable, indulgent products (comfort food) served around the clock.
• Current sales benefit from off-premise stickiness and incremental sales generated by its 2 new virtual brands (Burger Den & Meltdown).
• Now that Denny’s has largely returned to its 2019 unit-level financial performance, the chain must continue to contemporize by making further progress around lunch and dinner while also leveraging progress around off-premise to extend its reach to a younger demo.

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IHOP

IHOP is well established as the largest player in the $1B+ family chain segment with 28% market share and the largest marketing budget. The brand’s breakfast heritage leadership positioning is centered around pancakes (complimented by its never empty coffee pot & flavored syrups), a fun/likeable experience and engaging servers who provide a warm & welcoming environment. While “this is not your grandmother’s IHOP” with a younger demo vs. segment peers, value-oriented guests still represent 40% of the total which reflects IHOP’s “middle America” positioning.

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