DAWN LAFREEDA President, CEO Den-Tex Central, Inc.
Units: 90 Denny’s pre-Covid; closed several permanently post-Covid; 86 open as of 5/22/20 Age: 59 Years in franchising: 34 Years in current position: 34
Covid-19 has dealt a heavy blow to Dawn Lafreeda, Denny’s largest individual franchisee, and one of the largest female restaurant franchisees in the U.S. At the outset of the pandemic, her restaurants experienced business drops as much as 90 percent. She’s had to close some locations temporarily, and permanently close others. As she works to stretch every penny, she also must deal with the different shutdown rules and reopening schedules in the various cities and states where her Denny’s are located. HOW HAS COVID-19 AFFECTED YOUR BUSINESS? We were down anywhere from 75% to 90%. We had locations that were further down, which we chose to temporarily close as it was just too costly to keep them open. We also sadly have some stores that will never reopen. WHAT ARE YOU DOING RIGHT NOW TO GET THROUGH THIS? We are monitoring our business on a daily basis and making decisions as to hours of operation, number of staff to retain, and whatever other survival tools we can use. Each city and state has different rules, so we are constantly strategizing to make sure we can stretch every penny as far as we can until we are permitted to reopen and at a capacity that is sustainable. IS YOUR FRANCHISOR HELPING KEEP YOU AFLOAT? Our franchisor is helping where they can, but they are in the same boat we are in. We have gotten some royalty and advertising relief and rent deferrals for locations that we lease or sublease through them. They have been aggressive in doing all they can to help us to stay in business and stay safe during this unusual and unpredictable time. They are available 24/7 and have been fast thinking and fast moving in navigating through all the areas of the restaurant business we need to tend to—from keeping us up to date on PPP info, new product initiatives, a less complicated and more flexible menu, an increased digital messaging platform, signs and banners to notify our customers, sourcing new safety products we now need, and new technology enhancements, to
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Multi-Unit Franchisee
ISSUE 3, 2020
name a few. They have developed reopening kits and tools and have been very involved and proactive in communicating with us and our management teams about all the new government policies and changes, so that when we do get permission to reopen we are ready and fully informed to open safely. WHAT ARE YOU DOING TO HELP YOUR EMPLOYEES THROUGH THIS? We are trying to be as sympathetic and flexible as we can. If employees are uncomfortable coming to work, we encourage them to do what is right for them and their families. We are taking all the proper safety precautions, and we are keeping as many employed as we possibly can, even though we are on limited hours and resources with our dining rooms on limited capacity (while now finally starting to reopen in many states). We are paying for their insurance so if they become ill they will not have to worry about coverage, and we are keeping their tenure and benefits intact while they are on furlough. We are trying to save our company so they have a job and security to come back to. WHAT ARE YOU DOING FOR YOUR CUSTOMERS? We are re-engineering the way we do business to make it easier for our guests to dine with us and to make them feel safe in the process. We have enhanced our online ordering, our delivery methods, curbside pickup, and we have even added a drive-up option in some locations. Additionally, we are adding new items like bundled meals and family packs to make it affordable to still order food while having to dine at home. We are mindful that a lot of people do not have money right now, and we are working on some special discounted food offerings. HOW ARE YOU WORKING WITH YOUR SUPPLIERS? We made payment arrangements or deferrals with every supplier we could. Most all have been cooperative, understanding, and patient in waiting for their checks. A big problem we are going to have is that when we reopen, all these deferrals come due. With opening at limited occupancy in Texas for now, reduced
