Denny's Corporation (Denn): Análise de Pestle [Jan-2025 Atualizada]

No cenário em constante evolução da indústria de restaurantes, a Denny's Corporation permanece como um jogador resiliente que navega com desafios comerciais complexos em várias dimensões. Essa análise abrangente de pestles revela a intrincada rede de fatores políticos, econômicos, sociológicos, tecnológicos, legais e ambientais que moldam a trajetória estratégica dessa cadeia icônica de restaurante americana. Das pressões regulatórias às inovações tecnológicas, a Denny deve se adaptar continuamente para manter sua vantagem competitiva em um mercado dinâmico que exige agilidade, capacidade de resposta e previsão estratégica.

Denny's Corporation (Denn) - Análise de pilão: fatores políticos

Regulado por leis de segurança alimentar e trabalho

Denny's opera sob várias estruturas regulatórias federais e estaduais, incluindo:

Agência regulatória	Regulamentos -chave
FDA	Conformidade da Lei de Modernização de Segurança Alimentar
Osha	Padrões de segurança no local de trabalho
Departamento do Trabalho	Fair Labor Standards Act Aplucing

Impacto de legislação salarial mínima

Variações de salário mínimo atuais que afetam as operações de Denny:

• Salário mínimo federal: US $ 7,25 por hora
• Salário mínimo da Califórnia: US $ 15,50 por hora (a partir de 2023)
• Salário mínimo de Nova York: US $ 14,20 por hora
• Salário mínimo do Texas: US $ 7,25 por hora

Considerações da força de trabalho da política de imigração

A demografia da força de trabalho de Denny relacionada às políticas de imigração:

Categoria	Percentagem
Trabalhadores nascidos no exterior	23,4% da força de trabalho do restaurante
Trabalhadores hispânicos	35,7% dos funcionários do restaurante

Impacto da política comercial na cadeia de suprimentos de alimentos

Implicações de custo da cadeia de suprimentos:

• Impacto tarifário nos ingredientes alimentares: aumento de 10-25%
• Custos de importação para os principais ingredientes:
  • Carne: 15% de exposição tarifária potencial
  • Produção: 12% de flutuação potencial de custo

Denny's Corporation (Denn) - Análise de Pestle: Fatores Econômicos

Susceptível a crises econômicas, reduzindo as despesas gastronômicas do consumidor

No terceiro trimestre de 2023, Denny relatou receitas totais de US $ 116,2 milhões, refletindo a sensibilidade às condições econômicas. A cadeia de restaurantes experimentou um 2,7% declínio nas vendas nas mesmas lojas durante esse período.

Indicador econômico	Valor	Ano
Receita total	US $ 456,8 milhões	2022
Resultado líquido	US $ 58,3 milhões	2022
Mudança de vendas nas mesmas lojas	-2.7%	Q3 2023

Inflação aumentando as despesas operacionais e de aquisição de alimentos

Os custos alimentares do Denny aumentavam em 7,2% em 2022, impactando diretamente as despesas operacionais. Os custos de mão -de -obra aumentaram 5,6% durante o mesmo período.

Categoria de custo	Aumento percentual	Ano
Custos alimentares	7.2%	2022
Custos de mão -de -obra	5.6%	2022
Inflação de preços de commodities	8.3%	2022

Dependente de padrões discricionários de gastos com consumidores

Os gastos discricionários do consumidor no setor de restaurantes mostraram Volatilidade moderada, com Denny experimentando flutuações no tráfego de clientes.

Métrica de gastos	Valor	Ano
Gasto médio do cliente	$14.50	2022
Mudança de tráfego do cliente	-1.5%	Q3 2023
Visitas a restaurantes	3,4 bilhões	2022

O modelo de franquia fornece resiliência financeira durante as flutuações econômicas

O modelo de franquia de Denny demonstrou estabilidade financeira com 279 restaurantes franqueados gerando fluxos de receita consistentes.

Métrica de franquia	Valor	Ano
Total de restaurantes franqueados	279	2022
Receita de royalties de franquia	US $ 42,6 milhões	2022
Margem de franquia	18.7%	2022

Denny's Corporation (Denn) - Análise de Pestle: Fatores sociais

Direcionando famílias de classe média e consumidores conscientes do orçamento

A partir do quarto trimestre de 2023, o preço médio do menu de Denny varia de US $ 8,99 a US $ 14,99, visando consumidores de renda média. A rede de restaurantes mantém 1.640 locais nos Estados Unidos, com 90% localizados nas áreas urbanas suburbanas e de médio porte.

Consumidor demográfico	Percentagem	Gastos médios
Famílias de classe média	62%	US $ 12,50 por pessoa
Consumidores conscientes do orçamento	38%	US $ 9,75 por pessoa

Adaptando -se à mudança de preferências gastronômicas para opções de menu mais saudáveis

Em 2023, a Denny apresentou 15 novos itens de menu baseados em plantas e de baixa caloria, representando 22% de suas ofertas totais de menu.

Categoria de menu	Opções saudáveis	Alcance de calorias
Entradas à base de plantas	7 itens	350-500 calorias
Seleções de baixa caloria	8 itens	250-400 calorias

Experimentando mudança na demanda do consumidor por pedidos e entrega digital

A ordem digital representou 34% do total de vendas de Denny em 2023, com parcerias com DoorDash, Uber Eats e GrubHub.

Canal de pedido	Porcentagem de vendas	Crescimento anual
No restaurante	66%	2%
Plataformas digitais	34%	18%

Catering para experiências de refeições multigeracionais

A base de clientes de Denny abrange várias gerações, com representação significativa entre as faixas etárias.

Faixa etária	Porcentagem de clientes	Frequência média de visita
Geração Z (18-25)	15%	2.3 visitas/mês
Millennials (26-41)	35%	3.1 visitas/mês
Geração X (42-57)	28%	4.2 visitas/mês
Baby Boomers (58-76)	22%	5.7 Visitas/mês

Denny's Corporation (Denn) - Análise de Pestle: Fatores tecnológicos

Implementando pedidos móveis e plataformas de pagamento digital

A Denny's Corporation investiu US $ 3,5 milhões em tecnologia de pedidos móveis a partir de 2023. O aplicativo móvel foi baixado 1,2 milhão de vezes, com 42% dos pedidos digitais agora feitos por plataformas móveis. O valor médio do pedido móvel é de US $ 24,75, representando um aumento de 18% em relação à ordem tradicional no restaurante.

Métricas de plataforma móvel	2023 dados
Downloads de aplicativos móveis totais	1,200,000
Porcentagem de pedidos digitais	42%
Valor médio do pedido móvel	$24.75
Investimento em tecnologia móvel	$3,500,000

Investir em tecnologias de gerenciamento de relacionamento com clientes (CRM)

A Denny implementou um novo sistema Salesforce CRM em 2023, custando US $ 2,1 milhões. O sistema rastreia 3,6 milhões de perfis de clientes, com um aumento de 27% no engajamento personalizado de marketing. As taxas de retenção de clientes melhoraram 14% através de interações digitais direcionadas.

Métricas de tecnologia de CRM	2023 dados
Investimento do sistema CRM	$2,100,000
Perfis de clientes	3,600,000
Aumento do engajamento de marketing	27%
Melhoria da taxa de retenção de clientes	14%

Utilizando análise de dados para otimização de menus e insights do cliente

A plataforma de análise de dados da Denny processou 12,4 milhões de transações de clientes em 2023. O sistema identificou o desempenho do item de menu, levando a uma otimização de 9% do menu e US $ 4,2 milhões em possíveis melhorias de receita. A análise preditiva reduziu o desperdício de alimentos em 16%.

Métricas de análise de dados	2023 dados
Transações de clientes processadas	12,400,000
Impacto de otimização do menu	9%
Melhoria potencial de receita	$4,200,000
Redução de resíduos de alimentos	16%

Melhorando sistemas de reserva on -line e engajamento digital

A plataforma de reserva digital de Denny lidou com 687.000 reservas on -line em 2023. A integração do sistema custou US $ 1,8 milhão, com um aumento de 33% nas reservas de tabela digital. As métricas de engajamento on -line mostram um crescimento de 22% nas interações digitais dos clientes.

Métricas de reserva digital	2023 dados
Reservas on -line	687,000
Investimento de plataforma de reserva digital	$1,800,000
Aumento da reserva de mesa digital	33%
Crescimento da interação do cliente digital	22%

Denny's Corporation (Denn) - Análise de Pestle: Fatores Legais

Conformidade com os regulamentos de segurança alimentar e os padrões do Departamento de Saúde

Em 2023, a Denny's Corporation registrou 1.561 locais totais de restaurantes, com cada sujeito a rigorosos requisitos de conformidade com segurança alimentar. A empresa gastou US $ 4,2 milhões em programas de treinamento e conformidade de segurança alimentar no ano fiscal de 2022.

Métrica de conformidade regulatória	2022-2023 dados
Inspeções do departamento de saúde aprovadas	98.7%
Horário de treinamento em segurança alimentar por funcionário	12,5 horas/ano
Investimento anual de conformidade	$4,200,000

Gerenciando possíveis riscos legais relacionados ao emprego

O Departamento Jurídico de Denny administrou 127 reivindicações legais relacionadas ao emprego em 2022, com despesas legais totais de US $ 3,8 milhões em resolução de disputas de emprego.

Métrica de risco legal de emprego	2022 Estatísticas
Total de reivindicações de emprego	127
Despesas legais para disputas de emprego	$3,800,000
Reivindicações resolvidas sem litígios	84%

Navegando Estruturas Legais de Contrato de Franquia

A partir de 2023, a Denny's opera 1.561 restaurantes, com 1.395 locais de franquia. A empresa mantém 342 acordos de franquia ativa com custos legais de conformidade de US $ 2,1 milhões anualmente.

FRANCHISE LEGAL Framework Métrica	2022-2023 dados
Locais totais de franquia	1,395
Acordos de franquia ativa	342
Custos anuais de conformidade legal de franquia	$2,100,000

Abordar possíveis preocupações de proteção e responsabilidade do consumidor

Em 2022, a Denny processou 87 reivindicações de responsabilidade do consumidor, com despesas totais de liquidação de US $ 5,6 milhões. A empresa mantém US $ 50 milhões em cobertura de seguro de responsabilidade civil.

Métrica de proteção ao consumidor	2022 Estatísticas
Reivindicações de responsabilidade do consumidor	87
Despesas totais de liquidação	$5,600,000
Cobertura de seguro de responsabilidade civil	$50,000,000

Denny's Corporation (Denn) - Análise de Pestle: Fatores Ambientais

Foco crescente em práticas sustentáveis ​​de fornecimento de alimentos

A Denny's Corporation se comprometeu a adquirir 20% de sua proteína de fornecedores sustentáveis ​​até 2025. A Companhia implementou uma estratégia abrangente de fornecimento sustentável direcionada:

• Ovos sem gaiolas: implementação 100% até 2025
• Frango sem antibióticos: 50% da cadeia de suprimentos de frango até 2024
• Frutos do mar de origem responsável: 75% de certificação do Conselho de Administração da Marinha

Métrica de fornecimento sustentável	Progresso atual	Ano -alvo
Ovos sem gaiolas	65%	2025
Frango sem antibióticos	35%	2024
Frutos do mar de origem responsável	62%	2025

Reduzindo a pegada de carbono através de projetos de restaurantes com eficiência energética

A Denny's investiu US $ 12,7 milhões em infraestrutura de restaurantes com eficiência energética, com foco em:

• Retrofits de iluminação LED: 85% dos locais dos restaurantes
• Equipamento de cozinha com eficiência energética: reduz o consumo de energia em 22%
• Atualizações do sistema HVAC: economia de energia projetada de 18%

Iniciativa de eficiência energética	Investimento	Economia de energia
Iluminação LED	US $ 4,3 milhões	15% de redução
Equipamento de cozinha	US $ 5,2 milhões	Redução de 22%
Atualizações de HVAC	US $ 3,2 milhões	Redução de 18%

Implementando programas de redução e reciclagem de resíduos

A estratégia de gerenciamento de resíduos de Denny inclui:

• Redução de desperdício de alimentos: 35% diminuição desde 2020
• Programa de reciclagem: 68% dos restaurantes participam
• Iniciativas de compostagem: 42% dos locais de restaurantes

Métrica de gerenciamento de resíduos	Desempenho atual	Ano de linha de base
Redução de resíduos de alimentos	Diminuição de 35%	2020
Participação de reciclagem	68%	2022
Locais de compostagem	42%	2023

Respondendo à demanda do consumidor por práticas ambientalmente responsáveis

Preferências ambientais do consumidor, impulsionando os esforços de sustentabilidade de Denny:

• 60% dos clientes preferem restaurantes com práticas sustentáveis
• 45% disposto a pagar o prêmio por opções de menu ambientalmente responsáveis
• Melhoria da percepção da marca: aumento de 28% nas classificações positivas

Preferência de sustentabilidade do consumidor	Percentagem	Impacto
Prefira restaurantes sustentáveis	60%	Alto
Disposto a pagar prêmio	45%	Médio
Melhoria da percepção da 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.