Denny's Corporation (DENN): Analyse Pestle [Jan-2025 MISE À JOUR]

Dans le paysage en constante évolution de l'industrie de la restauration, Denny's Corporation est un joueur résilient naviguant des défis commerciaux complexes à travers plusieurs dimensions. Cette analyse complète du pilon dévoile le réseau complexe de facteurs politiques, économiques, sociologiques, technologiques, juridiques et environnementaux qui façonnent la trajectoire stratégique de cette chaîne de restaurants américaine emblématique. Des pressions réglementaires aux innovations technologiques, Denny doit s'adapter en permanence pour maintenir son avantage concurrentiel sur un marché dynamique qui exige l'agilité, la réactivité et la prévoyance stratégique.

Denny's Corporation (DENN) - Analyse du pilon: facteurs politiques

Réglementé par la sécurité alimentaire et les lois du travail

Denny's opère dans plusieurs cadres réglementaires fédéraux et étatiques, notamment:

Agence de réglementation	Règlements clés
FDA	Conformité de la loi sur la modernisation de la sécurité alimentaire
OSHA	Normes de sécurité au travail
Département du travail	Application de la loi sur les normes de travail équitable

Impact de la législation sur le salaire minimum

Variations de salaire minimum actuelles affectant les opérations de Denny:

• Salaire minimum fédéral: 7,25 $ par heure
• California Minimum Salage: 15,50 $ l'heure (à partir de 2023)
• Salaire minimum de New York: 14,20 $ par heure
• Texas Salaire minimum: 7,25 $ par heure

Politique d'immigration Considérations de la main-d'œuvre

La démographie de la main-d'œuvre de Denny liée aux politiques d'immigration:

Catégorie	Pourcentage
Travailleurs nés à l'étranger	23,4% de la main-d'œuvre du restaurant
Travailleurs hispaniques	35,7% des employés du restaurant

Impact de la politique commerciale sur la chaîne d'approvisionnement alimentaire

Implications des coûts de la chaîne d'approvisionnement:

• Impact tarifaire sur les ingrédients alimentaires: 10-25%
• Coûts d'importation pour les ingrédients clés:
  • Boeuf: 15% d'exposition aux tarifs potentiels
  • Produits: 12% de fluctuation potentielle des coûts d'importation

Denny's Corporation (DENN) - Analyse du pilon: facteurs économiques

Sensible aux ralentissements économiques réduisant les dépenses de restauration des consommateurs

Au troisième trimestre 2023, Denny a déclaré des revenus totaux de 116,2 millions de dollars, reflétant la sensibilité aux conditions économiques. La chaîne de restaurants a connu un 2,7% de baisse des ventes à magasins comparables pendant cette période.

Indicateur économique	Valeur	Année
Revenus totaux	456,8 millions de dollars	2022
Revenu net	58,3 millions de dollars	2022
Changement de ventes à magasins comparables	-2.7%	Q3 2023

Inflation augmente les dépenses opérationnelles et alimentaires

Les coûts alimentaires pour Denny ont augmenté de 7,2% en 2022, impactant directement les dépenses opérationnelles. Les coûts de main-d'œuvre ont augmenté de 5,6% au cours de la même période.

Catégorie de coûts	Pourcentage d'augmentation	Année
Coûts alimentaires	7.2%	2022
Coûts de main-d'œuvre	5.6%	2022
Inflation des prix des matières premières	8.3%	2022

En fonction des modèles de dépenses de consommation discrétionnaires

Les dépenses discrétionnaires des consommateurs dans le secteur des restaurants ont montré volatilité modérée, avec Denny expérimentant les fluctuations du trafic client.

Métrique de dépenses	Valeur	Année
Dépenses moyennes du client	$14.50	2022
Changement de trafic client	-1.5%	Q3 2023
Visites au restaurant	3,4 milliards	2022

Le modèle de franchise fournit une résilience financière pendant les fluctuations économiques

Le modèle de franchise de Denny a démontré la stabilité financière avec 279 restaurants franchisés générer des sources de revenus cohérentes.

Métrique de franchise	Valeur	Année
Restaurants franchisés totaux	279	2022
Revenus de redevances de franchise	42,6 millions de dollars	2022
Marge de franchise	18.7%	2022

Denny's Corporation (DENN) - Analyse du pilon: facteurs sociaux

Cibler les familles de la classe moyenne et les consommateurs soucieux du budget

Au quatrième trimestre 2023, le prix moyen du menu de Denny varie de 8,99 $ à 14,99 $, ciblant les consommateurs à revenu moyen. La chaîne de restaurants maintient 1 640 emplacements à travers les États-Unis, avec 90% dans les zones urbaines de banlieue et de taille moyenne.

Démographique des consommateurs	Pourcentage	Dépenses moyennes
Familles de classe moyenne	62%	12,50 $ par personne
Consommateurs soucieux du budget	38%	9,75 $ par personne

S'adapter à la modification des préférences de restauration aux options de menu plus saines

En 2023, Denny's a introduit 15 nouveaux éléments de menu à base de plantes et à faible calories, ce qui représente 22% de leurs offres de menu total.

Catégorie de menu	Options saines	Gamme de calories
Entrées à base de plantes	7 articles	350-500 calories
Sélections à faible calories	8 articles	250-400 calories

Expérimentation du changement dans la demande des consommateurs pour la commande et la livraison numériques

La commande numérique représentait 34% des ventes totales de Denny en 2023, avec des partenariats avec Doordash, Uber Eats et Grubhub.

Canal de commande	Pourcentage de ventes	Croissance annuelle
-Restaurant	66%	2%
Plates-formes numériques	34%	18%

Représentation des expériences de restauration multigénérationnelles

La clientèle de Denny s'étend sur plusieurs générations, avec une représentation significative entre les groupes d'âge.

Groupe d'âge	Pourcentage de clients	Fréquence de visite moyenne
Génération Z (18-25)	15%	2.3 Visites / mois
Milléniaux (26-41)	35%	3.1 Visites / mois
Génération X (42-57)	28%	4.2 Visites / mois
Baby-boomers (58-76)	22%	5.7 Visites / mois

Denny's Corporation (DENN) - Analyse du pilon: facteurs technologiques

Implémentation de plateformes de commande mobile et de paiement numérique

Denny's Corporation a investi 3,5 millions de dollars dans la technologie de commande mobile à partir de 2023. L'application mobile a été téléchargée 1,2 million de fois, avec 42% des commandes numériques désormais passées via des plateformes mobiles. La valeur moyenne des commandes mobiles est de 24,75 $, ce qui représente une augmentation de 18% par rapport à la commande traditionnelle en restauration.

Métriques de la plate-forme mobile	2023 données
Téléchargements totaux d'applications mobiles	1,200,000
Pourcentage de commande numérique	42%
Valeur de commande mobile moyenne	$24.75
Investissement technologique mobile	$3,500,000

Investir dans les technologies de gestion de la relation client (CRM)

Denny a mis en œuvre un nouveau système Salesforce CRM en 2023, ce qui coûte 2,1 millions de dollars. Le système suit 3,6 millions de profils de clients, avec une augmentation de 27% de l'engagement marketing personnalisé. Les taux de rétention de la clientèle se sont améliorés de 14% grâce à des interactions numériques ciblées.

Métriques de la technologie CRM	2023 données
Investissement du système CRM	$2,100,000
Profils de clients	3,600,000
Augmentation de l'engagement marketing	27%
Amélioration du taux de rétention de la clientèle	14%

Utilisation d'analyse de données pour l'optimisation des menu et les informations clients

La plate-forme d'analyse de données de Denny a traité 12,4 millions de transactions clients en 2023. Le système a identifié les performances de l'élément de menu, conduisant à une optimisation de menu de 9% et à 4,2 millions de dollars en améliorations potentielles des revenus. L'analyse prédictive a réduit les déchets alimentaires de 16%.

Métriques d'analyse des données	2023 données
Transactions des clients traités	12,400,000
Impact d'optimisation du menu	9%
Amélioration potentielle des revenus	$4,200,000
Réduction des déchets alimentaires	16%

Amélioration des systèmes de réservation en ligne et d'engagement numérique

La plate-forme de réservation numérique de Denny a géré 687 000 réservations en ligne en 2023. L'intégration du système a coûté 1,8 million de dollars, avec une augmentation de 33% des réservations de table numérique. Les mesures d'engagement en ligne montrent une croissance de 22% des interactions numériques des clients.

Métriques de réservation numérique	2023 données
Réservations en ligne	687,000
Investissement de la plate-forme de réservation numérique	$1,800,000
Augmentation de la réservation de table numérique	33%
Croissance d'interaction client numérique	22%

Denny's Corporation (DENN) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations de la sécurité alimentaire et aux normes du service de santé

En 2023, Denny's Corporation a signalé 1 561 emplacements au total des restaurants, chacun sous réserve d'exigences rigoureuses de conformité en matière de sécurité alimentaire. L'entreprise a dépensé 4,2 millions de dollars en programmes de formation et de conformité en matière de sécurité alimentaire au cours de l'exercice 2022.

Métrique de la conformité réglementaire	Données 2022-2023
Les inspections du département de la santé sont passées	98.7%
Heures de formation en sécurité alimentaire par employé	12,5 heures / an
Investissement annuel de conformité	$4,200,000

Gérer les risques juridiques potentiels liés à l'emploi

Le service juridique de Denny a géré 127 réclamations juridiques liées à l'emploi en 2022, avec des frais juridiques totaux de 3,8 millions de dollars pour le règlement des litiges.

Emploi Métrique du risque légal	2022 statistiques
Réclamations totales d'emploi	127
Dépenses juridiques pour les litiges d'emploi	$3,800,000
Réclamation résolue sans litige	84%

Navigation Cadre des accords juridiques de l'accord de franchise

En 2023, Denny's exploite 1 561 restaurants, avec 1 395 emplacements de franchise. La société maintient 342 accords de franchise actifs avec des frais de conformité légaux de 2,1 millions de dollars par an.

Franchise Métrique du cadre juridique	Données 2022-2023
Emplacements totaux de franchise	1,395
Accords de franchise actifs	342
Coûts de conformité juridique de la franchise annuelle	$2,100,000

Répondre à des problèmes potentiels de protection et de responsabilité des consommateurs

En 2022, Denny a traité 87 réclamations de responsabilité des consommateurs, avec des frais de règlement totaux de 5,6 millions de dollars. La société maintient 50 millions de dollars en couverture d'assurance responsabilité civile.

Métrique de protection des consommateurs	2022 statistiques
Réclamations de responsabilité des consommateurs	87
Total des frais de règlement	$5,600,000
Couverture d'assurance responsabilité	$50,000,000

Denny's Corporation (DENN) - Analyse du pilon: facteurs environnementaux

Accent croissant sur les pratiques d'approvisionnement alimentaire durables

Denny's Corporation s'est engagée à s'approvisionner 20% de ses protéines auprès de fournisseurs durables d'ici 2025. La société a mis en œuvre un ciblage complet de stratégie d'approvisionnement durable:

• Oeufs sans cage: 100% de mise en œuvre d'ici 2025
• Poulet sans antibiotique: 50% de la chaîne d'approvisionnement en poulet d'ici 2024
• Fruits de mer d'origine responsable: 75% de Marine Stewardship Council certifié

Métrique d'approvisionnement durable	Progrès actuel	Année cible
Œufs sans cage	65%	2025
Poulet sans antibiotique	35%	2024
Fruits de mer d'origine responsable	62%	2025

Réduire l'empreinte carbone grâce à des conceptions de restaurants éconergétiques

Denny's a investi 12,7 millions de dollars dans l'infrastructure de restaurants économe en énergie, en se concentrant sur:

• Rétrofits d'éclairage LED: 85% des emplacements des restaurants
• Équipement de cuisine économe en énergie: réduit la consommation d'énergie de 22%
• Mises à niveau du système HVAC: Économies d'énergie projetées à 18%

Initiative d'efficacité énergétique	Investissement	Économies d'énergie
Éclairage LED	4,3 millions de dollars	Réduction de 15%
Équipement de cuisine	5,2 millions de dollars	Réduction de 22%
Mises à niveau HVAC	3,2 millions de dollars	Réduction de 18%

Mise en œuvre des programmes de réduction des déchets et de recyclage

La stratégie de gestion des déchets de Denny comprend:

• Réduction des déchets alimentaires: 35% de diminution depuis 2020
• Programme de recyclage: 68% des restaurants participent
• Initiatives de compostage: 42% des emplacements des restaurants

Métrique de gestion des déchets	Performance actuelle	Année de base
Réduction des déchets alimentaires	35% de diminution	2020
Recycling Participation	68%	2022
Lieux de compostage	42%	2023

Répondre à la demande des consommateurs pour des pratiques responsables de l'environnement

Préférences environnementales des consommateurs stimulant les efforts de durabilité de Denny:

• 60% des clients préfèrent les restaurants avec des pratiques durables
• 45% disposés à payer la prime pour les options de menu responsable de l'environnement
• Amélioration de la perception de la marque: augmentation de 28% des notes positives

Préférence de durabilité des consommateurs	Pourcentage	Impact
Préférer les restaurants durables	60%	Haut
Prêt à payer la prime	45%	Moyen
Amélioration de la perception de la marque	28%	Significatif

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.