For 2022, Denny’s reported advertising costs of $81.2 million (consisting of $75.9 million related to its franchised restaurants and $5.3 million for company-owned restaurants), up from $74.6 million in 2021, according to regulatory filings.
This year marks Denny’s 70th anniversary, and Landry is looking to boost Denny’s cultural relevance by bringing in younger families with kids, and going back to the chain’s breakfast roots.
“We want to focus on taking back breakfast,” Landry said. “That is our heritage and our equity and we want to be strong in that place again. We know that consumer confidence is declining and that impacts where they spend, but we can help our guests enjoy breakfast at a great value.”
From June: Denny’s challenge offers free bacon
“My belief is that we will lean more into the middle of the funnel,” she continued. “We have great brand awareness, but we understand that if we aren’t talking to our customers, we can’t win. We plan on using national cable, but also doubling down on paid social, programmatic and online video.”
Denny’s third-quarter U.S. same-restaurant sales grew 1.8%, helped by off-premise sales and its focus on breakfast. The brand also said its limited-time bacon-focused menu was a success, but noted that foot traffic was lower as consumers remain budget-conscious. By comparison, IHOP’s U.S. same-restaurant sales rose 2% in the same period and Cracker Barrel’s comparable store restaurant sales increased 2.4% in its fiscal fourth quarter.
The win is a boost for Mindshare, which earlier this year lost Kimberly-Clark’s U.S. media account and General Mills’ global media accounts.
“We are thrilled to partner with Denny’s, a brand that has captured the hearts and minds of their guests worldwide,” Nancy Hall, Mindshare’s North America CEO, said in a statement. “The Denny’s team is smart, passionate, and future-thinking. They have a real understanding of the power of media, and how it can create the best outcomes for brands and consumers alike.”