Denny’s chief marketing officer Frances Allen has been on the job for just over six months, but she already has had a big impact on the family-dining brand, developing the chain’s “America’s Diner is Always Open” campaign with new ad agency Gotham. While the new advertising showcases Denny’s decades of history as a self-described 24/7 diner concept, Allen said the chain’s plans call for a continued focus on the future with new menu items and fast-casual or express variants.
“Denny’s is a brand on the move, which is the big reason why I joined,” said Allen, who most recently was with Dunkin’ Brands Inc. “We built more restaurants in 2010 than the rest of the segment combined.”
For Denny’s, the “always open” positioning means more than operating 24 hours a day, Allen said. The brand is looking to convey a “come as you are” inclusiveness for all its customers, from the young night owls perusing the “Allnighter” menu to the senior citizens who make up a large part of the brand’s consumer base.
Allen visited the Nation’s Restaurant News offices in New York this week to discuss the initiatives underway at the Spartanburg, S.C.-based chain.
What were your first priorities when you took the helm as CMO at Denny’s?
In the first 60 to 90 days, I had three main priorities. The first was to understand Denny’s core DNA. They’d pulled together excellent consumer research, and we had to find a powerful positioning statement we could own, along with an agency that could deliver it. The second was making sure that, as we designed this positioning, I had as much exposure as possible to the franchisees, restaurants and managers, and that I got their input. Then, the third was making sure we had the right media strategy. I had to really move fast because I had to have the new brand idea fully baked in time for the November franchisee convention, and I agreed that was imperative.
So the franchisees embraced it?
Absolutely. They loved it. It’s not a change in direction as far as the consumer is concerned. Denny’s is at its heart a diner. It’s not like we’re fighting gravity. But what we learned from our consumer research is that we have a very working-class guest structure across a broad cross section of America. It’s all ages, ethnicities and regions, so there’s no way we could target demographically.
The only way to get the common thread was through guests’ values. One is that they are a group of people that really want to live and let live. They’re very family oriented. Many have lost their job, but as long as they have their family they would get through. They loved the warm, nonjudgmental reception they got in our restaurants. Our customers feel that white collar got us into this mess, and blue collar will get us out, and that it’s on their shoulders to lift us all out of recession, and they want a brand that will support them. The sense that Denny’s is always there and always open was powerful for them.
Had earlier ads not focused on this hospitality?
We had been telling people how much they loved breakfast, but now we’re telling people why they belong at Denny’s. It’s a shift to focusing on what makes this a great experience. I’ve worked on three continents, and the one thing that’s always true is that people need to feel a sense of belonging. Yes, the food has to be great and the price needs to be affordable, but they also need to feel this sense that Denny’s is a place for them.
How do you convey that positioning to all your disparate audience segments, like seniors and young people during late night?
The premise that America’s diner is always open is consistent across all those audiences. They may access that information in different ways, but it’s all about your media strategy, how you reach them, and who you show and what food you highlight in the advertisements. Social media is critical for the youth, but we’ll also have a spot with much younger kids and humor that would appeal to young people and older adults alike.
About 10 years ago, Denny’s made an overt push for diner positioning by building those “Silver Bullet” diners, but this campaign seems less about the space than the hospitality.
There was a retrenchment from that model, and I think that if there was a mistake made, it was in thinking that to be a diner you had to look like a diner. When customers talk about America’s diner, it’s about the service, warmth, hospitality, comfort food, a bountiful menu, and fair prices and portions. There’s a feeling that there’s no judgment and that you can come as you are. It was never about the physical space.
Does this positioning conflict at all with Denny’s moves to grow in nontraditional locations?
We’re testing a fast-casual model with Denny’s Café. It’s what a particularly younger customer or a more urban, time-strapped customer is looking for in a restaurant experience. There’s more opportunity to customize, with less reliance on being served. Another is the express variant, which has Denny’s menu, only portable — the Grand Slam Breakfast becomes a great Grand Slamwich. The express version is on six college campuses and is going down very well with students. On the other side are the refits with the Flying J travel centers. The professional drivers that eat there, when they come off the road, they want to sit down for a rewarding experience, where they can talk to servers and fellow customers if they want to.
Breakfast is only getting more competitive. What knowledge from your time at Dunkin’ Donuts would guide your initiatives at Denny’s?
I would say five principles of marketing apply to all brands. You’ve got to know who you are and how you intersect with your customers. You’ve got to understand how you give people a sense of belonging. You’ve got to have a brand idea and drive that through the organization. … You’ve got to do something innovative every year, whether it’s an innovative use of media or a new product line. Fifth, it’s really important to read, react and refine what you’re doing. You’ve got to continually make sure you’re putting pressure on the right levers and learning from your mistakes.
Denny’s customers are coming once every few months, but the Dunkin’ Donuts customer was more of a daily visitor. At Denny’s it’s about making sure people can afford to have an indulgence or treat themselves. The speed with which you serve a customer at both is very different but equally important. If they’re coming to your restaurant for 30 minutes, they don’t want to spend an hour, and if they’re coming through the drive-thru, they don’t want to be there more than two minutes.
Was service an issue before?
No, but at most restaurants, to make sure you have the same experience anywhere, there’s a set procedure we train servers to do by rote. There’s merit to that, and, by and large, that will continue. But we’re asking our servers to be themselves more and to think about how to make the experience better. Allowing them to let their personality shine through a bit more is what we’re focusing on.
How has the $2 $4 $6 $8 Value Menu performed for Denny’s?
It’s been tremendous. We’ve seen significant improvement in traffic in the second half of 2010. But it’s also come through in our research that guests are saying, “I’m having a hard time right now, and Denny’s is giving me a way to treat myself.” When we change the menu, we’re just refreshing it and bringing on new items to keep it interesting. … The value menu has to deliver the amount of traffic to make a difference, for sure. We’re adjusting the mix and bringing out premium items at the other end to compensate. That’s one of those “read, react and refine” issues. Everyone comes into January fat and broke, so we’re pushing healthful options and our value menu right now. You can turn a Grand Slam into a health-conscious meal if you want, with egg whites, turkey bacon and substituting fruit for potatoes — and it’s all cooked to order.
Contact Mark Brandau at [email protected].
