Denny’s Off-Premise Business Continues to Fuel Growth

The diner is the latest chain this earnings season to talk up the importance of delivery for their business, as it gradually sells company-owned stores to franchisees.

Denny’s growth strategy remains tied to expanding delivery and refranchising its company-owned stores, even as the latter eats at net sales in the short term.

The company reported first quarter same-store sales growth of 1.3 percent Tuesday, with total sales slipping 2.6 percent to $98.5 million. According to CEO John Miller, the diner’s growing delivery business, however, continues to be incremental, reaching new customers it otherwise wouldn’t have.

…Denny’s off-premise segment now accounts for 12 percent of total sales. The number of restaurants actively engaged with at least one delivery partner also grew to 79 percent over the period, the company said. Nearly one quarter of transactions across all dayparts (the brand defines four, including late night) are tagged for delivery or takeout, the chain noted at an investor conference last month. About 90 percent of the company’s 1,705 restaurants are now eligible for third-party delivery.


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