The strength of Denny’s brand has been the growth of the company’s strategic franchise model where the Spartanburg, South Carolina based operator has more than 265 franchisees with an average of 10 years of experience (with Denny’s).
As a result of the franchise-based growth, Denny’s has expanded the restaurant brand by adding almost 250 units over the last three years. With a current franchise base of 88 percent, Denny’s is targeting a franchise model that includes 90 percent franchisees and 10 percent company-owned stores. As the largest family dining chain (in units), Denny’s targeted franchise model is distinguished by a stronger balance sheet with increased financial flexibility.
Currently there is no franchise group that makes up more than 5 percent of the portfolio and 31 of the largest operators make up around 50 percent of system revenue. Since 2007, Denny’s has added 50 new franchisees including franchise operators with other high-quality quick-service chains like Jack In The Box and Carl’s Jr.