DENNY’S RENAISSANCE

later. As an iconic 24/7 diner chain that’s been around since 1953 (originally called Danny’s Donuts), Denny’s has become something of a big sister to Keke’s, with an emphasis on ‘big’— Denny’s closed out the first quarter this year with 1,594 restaurants. Meanwhile, emerging breakfast eatery Keke’s has 54 locations open, including 46 franchised units and eight company-operated stores.

“Strategically, this is an amazing acquisition for us and a growth vehicle for us. But it's also really important that we keep the two brands distinct,” Valade notes. “So whatever touches the employees, whatever touches the guests is separate, and then we leverage our great model franchisor approach in shared services.”

The company anticipates opening 35 to 45 restaurants this year, including eight to 12 Keke’s. “That's a category that's really exciting right now, so we are really positioning that for some pretty aggressive growth,” she says. Florida- based Keke’s cafes are only open from 7 a.m. to 2:30 p.m., but its AUVs are comparable to Denny’s (just shy of $2 million) and profit margins are in the upper teens to 20 percent.

Luckily, Valade is no stranger to rapid growth. Prior to joining Denny’s, where she succeeded former CEO John Miller, she spent 22 years at Dallasbased Brinker International. She joined as director of On the Border Mexican Grill & Cantina under Miller, who was president at that time.

In 2016, Valade was promoted to Brinker’s executive vice president and brand president of Chili’s Grill & Bar— the company’s first female brand president four decades after being founded.

“At that point is when I really just dug in to learn and fill any gaps, whether it was finance or leaning into development and real estate,” she says. “I also was, I think, known for raising my hand and being a little bit scrappy. If you gave me an assignment, whether it was inside HR at the time or even inside ops later, I didn't necessarily color inside the lines— in a good way.”

At Chili’s, she was responsible for more than 1,600 restaurants and established a clear vision and bold strategies, such as helping the brand to simplify its menu and reduce the number of food offerings to speed up service. She also cultivated a purpose-driven, positive culture, like establishing a “Women Taking the Lead” initiative to educate and encourage young female Chili’s leaders to dream bigger and achieve their career goals.

“I was just incredibly lucky [and] blessed; I’ve had amazing opportunities. It was a windy path, I like to say; it wasn’t a straight-up vertical,” she says. “I took that turn to COO and everything changed for me then.”

Most recently, Valade led Red Lobster as CEO, and in just eight months bolstered the seafood chain’s leadership team, filling the C-suite with industry leaders.

Now, Valade is looking to make a pos- itive impact at Denny’s and ensure the 70-year-old breakfast giant stays relevant for young diners.

RENEWING RELEVANCE AND GETTING BACK TO 24/7

When first looking at the opportunity to join Denny’s, Valade recalls noticing the massive potential of the breakfast giant. “I could see a yes, mature brand, but one that was being invested in.”

The casual-breakfast dining chain recently invested more than $25 million to improve and upgrade kitchen equipment, propelling the development of menu innovation while increasing efficiency and reducing waste. After completing the initiative, the brand also launched a new menu featuring a custom augmented reality experience.

On the menu innovation side, recent additions like Mac N' Brisket Sizzlin' Skillet, Oven-Baked Lasagna, and Caramel Apple Pie Crisp are resonating with guests and outperforming expectations, leading to an 8.4 percent increase in systemwide same-store sales in the first quarter of 2023—the strongest new dinner product launch since prior to the pandemic. Plus, a new conversion to a common network service provider will improve kitchen verification systems, server tablets, and QR pay. Denny’s is also making progress on its “big three” near-term initiatives, which include staffing, 24/7 operations, and value.

“Yes, it's a 70-year-old brand, and there's some relevance and up-to-date elements to that model,” Valade notes— yet she also loves the clear positioning of the Denny's brand. “We say we're America's Diner for today's America, and how can you not love that? We uniquely hold that position, and in a crowded segment, whether it's family dining or casual dining, full-service restaurants, the point of difference can mean everything to people. And just leaning into and being the best version of yourselves is sometimes the best strategy.”

Part of Denny’s core identity goes back to when it was first founded as a coffee shop and open 24 hours a day serving breakfast, lunch, and dinner. When Denny’s started franchising in 1963, most franchise agreements required 24/7 service in most locations. But when COVID hit, many Denny’s had to close for the first time, and some still have limited hours of operation.

Nearly 72 percent of Denny’s restau- rants are back to 24/7 operations, Valade says, which is the result of partnering with franchisees to help support them any way the brand can. “We’ve also continued to get more and more research that says, ‘look, your customer does want to know that we’re open, they do want to know they can count on Denny’s for that unique core equity for this brand,’” she adds. “Just watching the consumer come back to that normal behavior, that true recovery now in place in 2023, is helping build that business case. More and more every day get back open.”

In the last four years, Denny’s consumer base has skewed “much younger than you would imagine,” Valade notes; 45 percent of the chain’s consumers are Gen Z or millennials, who typically frequent the brand’s late-night day part and virtual brands.

“And those virtual brands, as you can imagine, are a sweet spot for us. It’s something we can continue to do really well,” she adds. “And while we are always focused on the experience in the restaurant, we also have close to 22 percent of our sales coming from those virtual brands and just off-premises takeout as a whole … So that's pretty exciting for us, too.”

Sustainable Madesimple

9 PLANT-BASED INGREDIENTS

Focused on the ocean —

and your bottom line.

Your food can do a world of good. Finless Plant-Based Tuna meets front-of-house seafood demands and simplifies backof-house operations, while alleviating pressure on the wild fish stock supply. It’s easy-to-use, versatile, not subject to price fluctuations and has a long refrigerated shelf life — so you can craft the flavorful dishes your customers crave and support a brighter future where oceans thrive.

PLANT-BASED TUNA POKE

Marinated Plant-Based Tuna with charred chili aioli, quinoa, kale, nori, edamame, avocado, and sesame.