Análisis PESTLE de Denny's Corporation (DENN) [Actualizado en enero de 2025]

En el panorama en constante evolución de la industria de restaurantes, Denny's Corporation se erige como un jugador resistente que navega por los complejos desafíos comerciales en múltiples dimensiones. Este análisis integral de morteros revela la intrincada red de factores políticos, económicos, sociológicos, tecnológicos, legales y ambientales que dan forma a la trayectoria estratégica de esta icónica cadena de comensales estadounidenses. Desde presiones regulatorias hasta innovaciones tecnológicas, Denny's debe adaptarse continuamente para mantener su ventaja competitiva en un mercado dinámico que exige agilidad, capacidad de respuesta y previsión estratégica.

Denny's Corporation (Denn) - Análisis de mortero: factores políticos

Regulado por las leyes de seguridad alimentaria y trabajo

Denny's opera bajo múltiples marcos regulatorios federales y estatales, que incluyen:

Agencia reguladora	Regulaciones clave
FDA	Cumplimiento de la Ley de Modernización de Seguridad Alimentaria
OSHA	Estándares de seguridad en el lugar de trabajo
Departamento de Trabajo	Aplicación de la Ley de Normas de Trabajo Justo

Impacto de la legislación de salario mínimo

Variaciones de salario mínimo actuales que afectan las operaciones de Denny:

• Salario mínimo federal: $ 7.25 por hora
• Salario mínimo de California: $ 15.50 por hora (a partir de 2023)
• NUEVA YORK Mínimo salario: $ 14.20 por hora
• Salario mínimo de Texas: $ 7.25 por hora

Consideraciones de la fuerza laboral de la política de inmigración

La demografía de la fuerza laboral de Denny relacionada con las políticas de inmigración:

Categoría	Porcentaje
Trabajadores nacidos en el extranjero	23.4% de la fuerza laboral del restaurante
Trabajadores hispanos	35.7% de los empleados del restaurante

Impacto en la política comercial en la cadena de suministro de alimentos

Implicaciones del costo de la cadena de suministro:

• Impacto arancelario en los ingredientes alimentarios: aumento del 10-25%
• Costos de importación para ingredientes clave:
  • Carne de res: 15% de exposición potencial a la tarifa
  • Producir: 12% de potencial de costo de importación Fluctuación

Denny's Corporation (Denn) - Análisis de mortero: factores económicos

Susceptible a recesiones económicas que reducen los gastos gastronómicos del consumidor

En el tercer trimestre de 2023, los ingresos totales de Denny informaron de $ 116.2 millones, lo que refleja la sensibilidad a las condiciones económicas. La cadena de restaurantes experimentó un 2.7% de disminución en las ventas de la misma tienda durante este período.

Indicador económico	Valor	Año
Ingresos totales	$ 456.8 millones	2022
Lngresos netos	$ 58.3 millones	2022
Cambio de ventas en la misma tienda	-2.7%	P3 2023

La inflación aumenta los gastos operativos y de adquisición de alimentos

Los costos de los alimentos para Denny aumentan por 7.2% en 2022, impactando directamente los gastos operativos. Los costos laborales aumentaron en un 5,6% durante el mismo período.

Categoría de costos	Aumento porcentual	Año
Costos de alimentos	7.2%	2022
Costos laborales	5.6%	2022
Inflación de los precios de los productos básicos	8.3%	2022

Dependiendo de los patrones de gasto discrecional del consumidor

El gasto discretario del consumidor en el sector de los restaurantes mostró volatilidad moderada, con Denny's experimentando fluctuaciones en el tráfico de clientes.

Métrico de gasto	Valor	Año
Gasto promedio del cliente	$14.50	2022
Cambio de tráfico de clientes	-1.5%	P3 2023
Visitas al restaurante	3.400 millones	2022

El modelo de franquicia proporciona resiliencia financiera durante las fluctuaciones económicas

El modelo de franquicia de Denny demostró estabilidad financiera con 279 restaurantes franquiciados Generación de flujos de ingresos consistentes.

Franquicia métrica	Valor	Año
Restaurantes totales franquiciados	279	2022
Ingresos de regalías de franquicia	$ 42.6 millones	2022
Margen de franquicia	18.7%	2022

Denny's Corporation (Denn) - Análisis de mortero: factores sociales

Dirigido a familias de clase media y consumidores conscientes del presupuesto

A partir del cuarto trimestre de 2023, el precio promedio del menú de Denny varía de $ 8.99 a $ 14.99, dirigido a consumidores de ingresos medios. La cadena de restaurantes mantiene 1,640 ubicaciones en los Estados Unidos, con un 90% ubicado en áreas urbanas suburbanas y medianas.

Demográfico del consumidor	Porcentaje	Gasto promedio
Familias de clase media	62%	$ 12.50 por persona
Consumidores conscientes del presupuesto	38%	$ 9.75 por persona

Adaptarse a las preferencias gastronómicas cambiantes hacia opciones de menú más saludables

En 2023, Denny's introdujo 15 nuevos elementos de menú basados ​​en plantas y bajas en calorías, que representan el 22% de sus ofertas de menú totales.

Categoría de menú	Opciones saludables	Rango de calorías
Plantas de planta	7 artículos	350-500 calorías
Selecciones de baja calorías	8 artículos	250-400 calorías

Experimentar el cambio en la demanda del consumidor de pedidos digitales y entrega

El pedido digital representaba el 34% de las ventas totales de Denny en 2023, con asociaciones con Doordash, Uber Eats y Grubhub.

Canal de pedido	Porcentaje de ventas	Crecimiento anual
In-restaurante	66%	2%
Plataformas digitales	34%	18%

Atiende a experiencias gastronómicas multigeneracionales

La base de clientes de Denny abarca múltiples generaciones, con una representación significativa entre los grupos de edad.

Grupo de edad	Porcentaje de clientes	Frecuencia de visita promedio
Generación Z (18-25)	15%	2.3 visitas/mes
Millennials (26-41)	35%	3.1 Visitas/mes
Generación X (42-57)	28%	4.2 Visitas/mes
Baby Boomers (58-76)	22%	5.7 visitas/mes

Denny's Corporation (Denn) - Análisis de mortero: factores tecnológicos

Implementación de plataformas de pedidos móviles y pagos digitales

Denny's Corporation ha invertido $ 3.5 millones en tecnología de pedidos móviles a partir de 2023. La aplicación móvil se ha descargado 1.2 millones de veces, con el 42% de los pedidos digitales ahora realizados a través de plataformas móviles. El valor promedio del pedido móvil es de $ 24.75, lo que representa un aumento del 18% del pedido tradicional en el restaurante.

Métricas de plataforma móvil	2023 datos
Descargas totales de aplicaciones móviles	1,200,000
Porcentaje de pedido digital	42%
Valor de pedido móvil promedio	$24.75
Inversión en tecnología móvil	$3,500,000

Invertir en tecnologías de gestión de relaciones con el cliente (CRM)

Denny's implementó un nuevo sistema Salesforce CRM en 2023, que cuesta $ 2.1 millones. El sistema rastrea 3.6 millones de perfiles de clientes, con un aumento del 27% en el compromiso de marketing personalizado. Las tasas de retención de clientes mejoraron en un 14% a través de interacciones digitales específicas.

Métricas de tecnología CRM	2023 datos
Inversión del sistema CRM	$2,100,000
Perfiles de clientes	3,600,000
Aumento del compromiso de marketing	27%
Mejora de la tasa de retención de clientes	14%

Utilización de análisis de datos para la optimización del menú y las ideas del cliente

La plataforma de análisis de datos de Denny procesó 12.4 millones de transacciones de clientes en 2023. El sistema identificó el rendimiento del elemento del menú, lo que lleva a una optimización del menú del 9% y $ 4.2 millones en posibles mejoras de ingresos. El análisis predictivo redujo el desperdicio de alimentos en un 16%.

Métricas de análisis de datos	2023 datos
Transacciones procesadas de clientes	12,400,000
Impacto de optimización del menú	9%
Mejora de ingresos potenciales	$4,200,000
Reducción de desechos de alimentos	16%

Mejorar la reserva en línea y los sistemas de participación digital

La plataforma de reserva digital de Denny manejó 687,000 reservas en línea en 2023. La integración del sistema costó $ 1.8 millones, con un aumento del 33% en las reservas de tabla digital. Las métricas de participación en línea muestran un crecimiento del 22% en las interacciones digitales del cliente.

Métricas de reserva digital	2023 datos
Reservas en línea	687,000
Inversión de plataforma de reserva digital	$1,800,000
Aumento de la reserva de tabla digital	33%
Crecimiento de la interacción del cliente digital	22%

Denny's Corporation (Denn) - Análisis de mortero: factores legales

Cumplimiento de las regulaciones de seguridad alimentaria y los estándares del departamento de salud

En 2023, Denny's Corporation reportó 1,561 ubicaciones de restaurantes totales, y cada una sujeta a rigurosos requisitos de cumplimiento de seguridad alimentaria. La compañía gastó $ 4.2 millones en programas de capacitación y cumplimiento de seguridad alimentaria en el año fiscal 2022.

Métrico de cumplimiento regulatorio	2022-2023 datos
Inspecciones de Departamento de Salud aprobadas	98.7%
Horas de capacitación de seguridad alimentaria por empleado	12.5 horas/año
Inversión anual de cumplimiento	$4,200,000

Gestión de posibles riesgos legales relacionados con el empleo

El departamento legal de Denny administró 127 reclamos legales relacionados con el empleo en 2022, con gastos legales totales de $ 3.8 millones para la resolución de disputas laborales.

Métrica de riesgo legal de empleo	2022 estadísticas
Reclamaciones de empleo total	127
Gastos legales para disputas laborales	$3,800,000
Reclamaciones resueltas sin litigio	84%

Navegar por el acuerdo de franquicia marco legal

A partir de 2023, Denny's opera 1.561 restaurantes, con 1.395 ubicaciones de franquicias. La Compañía mantiene 342 acuerdos de franquicia activos con costos de cumplimiento legal de $ 2.1 millones anuales.

Métrica de marco legal de franquicia	2022-2023 datos
Ubicaciones totales de franquicia	1,395
Acuerdos de franquicia activos	342
Costos de cumplimiento legal de franquicia anual	$2,100,000

Abordar las preocupaciones potenciales de protección y responsabilidad del consumidor

En 2022, Denny's procesó 87 reclamos de responsabilidad del consumidor, con gastos totales de liquidación de $ 5.6 millones. La compañía mantiene $ 50 millones en cobertura de seguro de responsabilidad civil.

Métrica de protección del consumidor	2022 estadísticas
Reclamaciones de responsabilidad del consumidor	87
Gastos totales de liquidación	$5,600,000
Cobertura de seguro de responsabilidad civil	$50,000,000

Denny's Corporation (Denn) - Análisis de mortero: factores ambientales

Aumento del enfoque en prácticas sostenibles de abastecimiento de alimentos

Denny's Corporation se ha comprometido a obtener el 20% de su proteína de proveedores sostenibles para 2025. La compañía ha implementado una estrategia integral de abastecimiento sostenible:

• Huevos sin jaula: implementación del 100% para 2025
• Pollo sin antibióticos: 50% de la cadena de suministro de pollo para 2024
• Mariscos de origen responsable: 75% del Consejo de Administración Marina Certificada

Métrica de abastecimiento sostenible	Progreso actual	Año objetivo
Huevos sin jaula	65%	2025
Pollo sin antibióticos	35%	2024
Mariscos de origen responsable	62%	2025

Reducir la huella de carbono a través de diseños de restaurantes de eficiencia energética

Denny's ha invertido $ 12.7 millones en infraestructura de restaurantes de eficiencia energética, centrándose en:

• Modificaciones de iluminación LED: 85% de las ubicaciones de los restaurantes
• Equipo de cocina de eficiencia energética: reduce el consumo de energía en un 22%
• Actualizaciones del sistema HVAC: 18% de ahorro de energía proyectado

Iniciativa de eficiencia energética	Inversión	Ahorro de energía
Iluminación LED	$ 4.3 millones	15% de reducción
Equipo de cocina	$ 5.2 millones	Reducción del 22%
Actualizaciones de HVAC	$ 3.2 millones	Reducción del 18%

Implementación de programas de reducción y reciclaje de residuos

La estrategia de gestión de residuos de Denny incluye:

• Reducción de desechos de alimentos: 35% disminuye desde 2020
• Programa de reciclaje: el 68% de los restaurantes participan
• Iniciativas de compostaje: 42% de las ubicaciones de los restaurantes

Métrica de gestión de residuos	Rendimiento actual	Año basal
Reducción de desechos de alimentos	35% de disminución	2020
Participación de reciclaje	68%	2022
Ubicaciones de compostaje	42%	2023

Responder a la demanda del consumidor de prácticas ambientalmente responsables

Preferencias ambientales del consumidor que impulsan los esfuerzos de sostenibilidad de Denny:

• El 60% de los clientes prefieren restaurantes con prácticas sostenibles.
• 45% dispuesto a pagar la prima por las opciones de menú ambientalmente responsables
• Mejora de la percepción de la marca: aumento del 28% en las calificaciones positivas

Preferencia de sostenibilidad del consumidor	Porcentaje	Impacto
Prefiere restaurantes sostenibles	60%	Alto
Dispuesto a pagar la prima	45%	Medio
Mejora de la percepción de la marca	28%	Significativo

Denny's Corporation (DENN) - PESTLE Analysis: Social factors

You're looking at how American diners are changing their habits, and for a brand like Denny's Corporation, these shifts are make-or-break for the next few years. The core takeaway here is that while the dine-in experience is returning, convenience and price are now non-negotiable table stakes. We need to see how Denny's Corporation is adapting its physical footprint and value proposition to match these ingrained behaviors.

Strong consumer preference for digital ordering and off-premise dining

Honestly, off-premise dining isn't a trend anymore; it's just how people eat. Nearly 75% of all restaurant traffic now happens outside the four walls-think takeout, drive-thru, and delivery. For Denny's Corporation, this means the digital experience has to be seamless, even if the core customer still prefers a physical menu when they sit down. Mobile ordering is now mainstream, used by 74% of Millennials and 65% of Gen Z adults. By Q1 2025, Denny's off-premise sales were already contributing 22% of total sales, showing a clear path for growth. If onboarding takes 14+ days, churn risk rises, especially when younger customers expect instant digital gratification.

Value-seeking behavior drives demand for Denny's 'All-Day Value Menu'

Inflation has made consumers extremely price-sensitive, so value is king. We see that 47% of diners cite 'value for money' as their number one factor when deciding where to eat. This is where Denny's core offering shines, provided they execute it well. Their focus on evolving value offerings is smart; for example, a promotional value campaign in Q1 2025-the Buy One Slam, Get One for $1-pulled in nearly 70% of transactions from lapsed or new customers. Here's the quick math: that promotion effectively doubled the basket size for a huge chunk of traffic, which is a powerful lever when consumers are watching every dollar.

Continued generational shift toward health-conscious and plant-based options

The desire for healthier and more ethical food choices is definitely sticking around, especially with younger diners. The plant-based food market hit $8.1 billion in 2024, showing how mainstream this has become. Denny's Corporation has been proactive, partnering with Dr. Praeger's in 2023 to extend meatless protein options and they are exploring more plant-based items for all-day service. What this estimate hides is the broader push for transparency; the commitment to source 100% cage-free eggs in all U.S. restaurants by 2026 is a direct response to these social expectations.

Labor shortage forces reliance on less-experienced, higher-cost staff

The labor situation remains a major headwind, directly impacting service quality and operational costs. As of early 2025, 92% of restaurant operators reported rising labor costs over the prior year, and 70% still had job openings that were tough to fill. This forces operators to rely on a less tenured workforce, which can strain service consistency. For Denny's Corporation's fiscal year 2025 outlook, management projected labor inflation between 2.5% and 3.5%. That's a real cost that has to be managed against menu pricing, which is why operational efficiency, perhaps through technology, becomes critical.

Here is a quick snapshot of the key social dynamics impacting Denny's Corporation as of their Q3 2025 reporting:

Social Factor Metric	Data Point/Value	Source Context
Off-Premise Traffic Share	Nearly 75% of all restaurant traffic	National Restaurant Association 2025 data
Denny's Off-Premise Sales Share (Q1 2025)	22% of total sales	Reported in Q1 2025 earnings
Diners Citing 'Value for Money' as Top Factor	47%	2025 Consumer Insight
Q1 2025 BOGO Promotion Success (New/Lapsed Customers)	Nearly 70% of transactions	Denny's Q1 2025 promotional data
Operators Experiencing Rising Labor Costs (Last 12 Months)	92%	Survey data as of early 2025
Denny's FY 2025 Projected Labor Inflation	2.5% to 3.5%	Management guidance for 2025

Finance: draft 13-week cash view by Friday

Denny's Corporation (DENN) - PESTLE Analysis: Technological factors

You're looking at how Denny's Corporation is trying to use tech to fight margin pressure and win back traffic in a tough consumer environment. Honestly, the tech stack is where a lot of the expected cost mitigation is supposed to come from, especially with labor costs being a constant headache.

Investment in the Denny's app and loyalty program to capture first-party data

The push to get customers into the Denny's app and the new loyalty program, Denny's Booth Rewards, is all about owning that customer relationship. They launched this points-based system, where you earn Booth Bucks, in the second half of 2025. Management is betting this digital engagement will pay off; they are targeting a traffic lift of between 50 to 100 basis points over time just from this loyalty push. Capturing that first-party data lets them personalize offers, which is key when system-wide sales are tough, like the (2.9%) domestic drop seen in Q3 2025.

The app itself is central to this, offering faster ordering and tracking for off-premises orders, which already contributed a 1.5% lift to same-restaurant sales in Q2 2025.

Rollout of kitchen automation tools to mitigate high labor costs

To combat those persistent high labor costs, Denny's Corporation is modernizing the back-of-house. They are investing in a new cloud-based Point-of-Sale (POS) system, deploying wireless handheld tablets across more than 1,400 franchise locations. This is paired with the integration of smart kitchen technologies, which helps ensure cooking consistency and allows for remote operational monitoring. The goal here is clear: drive operational efficiencies that contribute to their target of up to 200 basis points in margin savings for the year.

Here's a quick look at the digital footprint as of mid-2025:

Metric	Value (as of June 2025)
Total Global Restaurants	1,558
Franchise/Licensed Restaurants	1,474
Company-Operated Restaurants	84
Off-Premises Sales Contribution (Q2 2025)	1.5% of same-restaurant sales

Use of AI-driven scheduling software to optimize staffing across 1,600+ locations

Optimizing staffing is a direct lever against labor inflation, which management projected to be between 2.5% and 3.5% for the full 2025 year. While specific 2025 data for the entire Denny's system isn't public, the technology is definitely in the ecosystem's orbit. For instance, a large operator in the Denny's system in Canada saw a significant reduction in time spent on scheduling, saving 15,600 hours annually by using a web-based labor optimization platform.

The move to AI-driven tools helps in several ways:

• Forecast labor needs based on historical POS data.
• Reduce manual scheduling errors and time spent by managers.
• Ensure compliance with local labor laws automatically.
• Minimize unnecessary overtime costs.

This kind of precision is what you need when you are trying to manage costs while still serving customers around the clock, even if not every location is mandated to be 24/7 anymore.

Increased reliance on third-party delivery aggregators for revenue growth

Off-premises dining, heavily reliant on third-party aggregators like DoorDash or Uber Eats, remains a critical revenue stream. In Q1 2025, total off-premises sales accounted for about ~16% of business. While the company is pushing its own digital channels to capture data, the convenience factor of aggregators keeps them relevant for customer acquisition and retention. The company also launched its third virtual brand, Banda Burrito, in 2024, which leverages these to-go platforms.

Still, you have to watch the take-rate fees these aggregators charge; they eat into margins quickly. The fact that off-premises sales contributed a 1.5% lift to same-restaurant sales in Q2 2025 suggests the revenue gain is currently outweighing the cost pressure, but that balance is always precarious.

Finance: draft a sensitivity analysis on third-party delivery fee impact on Q4 2025 projected margins by next Tuesday.

Denny's Corporation (DENN) - PESTLE Analysis: Legal factors

You're navigating a minefield of regulations that change state by state, and honestly, it's exhausting for any multi-state operator like Denny's Corporation. The biggest headache remains labor compliance, especially around tipped wages, which keeps legal teams busy and drains capital.

Complex state-by-state labor laws increase compliance and litigation risk

Wage and hour disputes are a constant drain, showing that compliance across all 50 states is never truly 'solved.' Just recently, in April 2025, a federal judge approved a settlement in a Pennsylvania tipped wage case where servers were awarded just over $4 million, which included nearly $1 million for attorneys' fees. This stems from allegations about improper tip credit notice and servers performing non-tipped work, an issue tied to the revived federal 80/20 rule. You have to remember that even older cases, like a 2016 California settlement for $950,000, show the long tail of these class actions. Compliance isn't optional; it's a cost of doing business.

The risk is that a small procedural error in one state can balloon into millions across the system. It defintely keeps the risk management team on its toes.

• Monitor evolving state minimum wage hikes.
• Ensure tip credit notices are current everywhere.
• Review non-tipped task allocation for servers.

Franchise disclosure document (FDD) updates require transparency on franchisee economics

The 2025 Franchise Disclosure Document (FDD) is the key legal document for any new or existing franchisee, and it must reflect the current economic reality of running a Denny's unit. Transparency here is crucial for managing franchisee relations and meeting federal mandates. The FDD lays out the financial obligations you must adhere to, which is important when unit economics are tight.

Here's the quick math on what the FDD typically discloses regarding ongoing fees, based on the latest available data for a franchised location:

Fee Component	Typical Range/Value (2025 Data Context)
Average Unit Revenue (AUV)	$1,806,000 per year
Domestic Contractual Royalty Rate (2024 Avg)	Approx. 4.36% of gross sales
Franchisee Royalty Fee Range	Approx. 4.5-7% of gross sales
Marketing/Advertising Fee Range	Generally 3-4% of gross sales
Total Global Franchised Locations (Late 2024)	1,273 restaurants

What this estimate hides is the variance; license agreements for nontraditional spots might have different fee structures. Still, these mandatory disclosures set the baseline for your financial planning.

Ongoing legal challenges to the scope and application of the California FAST Act

The California Fast Food Accountability and Standards (FAST) Act, which established the Fast Food Council, remains a significant legal overhang for any operator in the state. While the law took effect in early 2023, challenges regarding the delegation of authority and potential preemption by the National Labor Relations Act (NLRA) have been a known risk since its inception. For Denny's Corporation, this means that any wage or working condition changes mandated by the Council could face immediate court scrutiny, increasing uncertainty in its largest market.

You need to track any 2025 rulings on the Council's authority, as they could either validate or severely restrict its power to set minimum wages above the state level for fast food workers.

Stricter food safety and hygiene regulations post-pandemic

Food safety is non-negotiable; it's a core operational risk cited in Denny's 2025 10-K. The company relies on its Hazard Analysis and Critical Control Points (HACCP) based systems, requiring the use of only approved vendors and distributors who follow strict handling procedures. Post-pandemic, the regulatory environment demands even tighter control over hygiene and supply chain integrity.

Denny's mandates rigorous internal checks, including quarterly third-party unannounced restaurant inspections, alongside standard health department reviews. Failure to meet these standards, whether by a company-owned unit or a franchisee, triggers an immediate remediation process. This regulatory focus means capital investment in training and compliance systems must remain a priority to maintain brand standards.

Finance: draft 13-week cash view by Friday

Denny's Corporation (DENN) - PESTLE Analysis: Environmental factors

You're looking at how the physical world-climate, resources, and regulation-is starting to hit the bottom line at Denny's Corporation (DENN). Honestly, the environmental pressures are no longer just about PR; they are becoming direct operational costs and investment hurdles. We need to map these risks to clear actions, because ignoring them means leaving money on the table.

Growing pressure from investors for clear supply chain sustainability metrics

Investors are definitely asking harder questions about where your ingredients come from and how they are raised. This isn't just about optics; it ties directly into long-term supply stability and reputational risk. Denny's Corporation is responding by setting measurable goals, like the commitment to complete the transition to 100% cage-free eggs by 2026. To manage this, they already hit 60% cage-free usage in 2024, up from 40% in 2023. Furthermore, the partnership with ArrowStream, established in February 2024, gives them a cloud-based platform for real-time visibility across their 1,500+ locations. They are also establishing processes to set specific sourcing targets starting in 2025.

Supply chain transparency is the new baseline. This is how you manage commodity risk.

Focus on reducing food waste, a significant cost and environmental issue

Food waste is a direct hit to your margins, especially with projected commodity inflation in the 2% to 4% range for 2025. It's estimated that one-third of all food produced globally is wasted, so every pound Denny's saves is money kept. The company saw a tangible win in 2024, reducing total waste from owned operations and company restaurants by 2%, moving from 5,028 tons to 4,912 tons. For 2025, the focus is on innovation across the menu and operations to continue this trend. This aligns with the broader national goal from the USDA and EPA to achieve a 50 percent reduction in U.S. food waste over the next 15 years.

Here's the quick math: cutting waste directly lowers your Cost of Goods Sold (COGS).

Mandates for increased energy efficiency in new and remodeled restaurant builds

The cost of energy-both electricity and natural gas-is a major operating expense, and new builds face higher efficiency standards. Denny's Corporation has already made significant headway in its corporate fleet. For instance, 100% of corporate restaurants and new greenfield locations now use LED fixtures. They are also installing dimming systems and high-efficiency equipment in new builds to keep usage down. This focus on efficiency is showing up in the numbers, with corporate office electricity usage down 18.8%. Plus, the remodel program, Diner 2.0, isn't just cosmetic; tested remodels showed a 6.5% lift in traffic.

We need to see these efficiency upgrades rolled out aggressively to offset rising utility costs.

Here is a snapshot of recent environmental performance metrics:

Metric Area	Performance Indicator	Value/Change	Year/Context
Energy (Electricity)	Electricity Usage Reduction (Corporate Restaurants)	6.7% Reduction	Since 2018
Energy (Natural Gas)	Natural Gas Usage Reduction (Company Restaurants, Average)	16.84% Less	Per Year Since 2018
Water	Water Consumption Reduction (Owned Operations)	2.7% Reduction	2023 to 2024
Waste	Standard Waste Reduction (Company-Owned Restaurants)	2% Reduction	2024

Water usage restrictions in drought-prone US regions impacting operations

Water scarcity is a growing operational constraint, especially in the Western and Southwestern US where many Denny's Corporation locations operate. While the company reduced its total water consumption across owned operations and restaurants by 2.7% in 2024, falling to 235,285 m3 from 241,850 m3 in 2023, this is a reactive measure. They have implemented in-restaurant programs, like safely shutting off cook's line dipper wells, which saves about 250,000 gallons of water per restaurant. Still, regional water authorities are tightening the screws. For example, some districts in drought-affected areas are implementing mandatory restrictions as of May 2025, limiting nonessential outdoor use to just two days per week.

If your franchise agreements don't account for mandatory water rationing, you could see temporary operational slowdowns.

• Review water-saving equipment ROI for all existing units.
• Track regional drought declarations impacting key markets.
• Ensure kitchen staff understand dipper well shut-off protocols.
• Assess water-efficient landscaping for new and remodeled sites.

Finance: draft 13-week cash view by Friday.