When John Dillon rose to President of Denny’s in September, he took on a big challenge: leading the nearly 70-year-old restaurant chain through its next brand evolution while staying true to its roots as America’s beloved diner.
The former Chief Brand Officer struck the right balance by marrying the company’s purpose — “we love to feed people” — with innovative social media strategies, targeted technology, impactful menu improvements, community outreach and a focus on diversity, equity and inclusion.
His efforts are paying off. By mid-November, shares of the publicly traded company had already jumped over 30% compared to the prior six months, as third quarter revenues and earnings beat expectations.
Here’s what other brands can learn from this growth-driving brand refresh:
1. Don’t be afraid to get wildly creative on social media and make big tech investments
Dillon has upped the decades-old company’s marketing game to connect it with a new generation. Denny’s recently partnered with 24 TikTok creators on signature dishes and joined forces with NCAA sports stars, including Stanford forward Fran Belibi, to promote its Super Slam breakfast deal. It also partnered with multiple NCAA offensive lineman to form the Denny’s “All Pancaker” team.
To keep up with rising costs and changing tastes, Denny’s has invested in new technology, modernized its kitchens and renovated its restaurants. It’s also making significant strides in transforming its digital footprint — giving customers a seamless online experience whether they’re looking for a Denny’s location or ordering a meal for delivery.
2. Take a stand for something. Your employees and your customers won’t forget it.
When Hurricane Ian pounded Florida’s West Coast this fall, Denny’s immediately sent its Mobile Relief Diner to the scene to provide thousands of hot meals to hard hit residents — an ongoing charitable commitment that began in 2017, in response to Hurricane Harvey in Houston.
Diversity is another priority. At Denny’s, 73% of employees identify as minorities, 58% of its restaurants are minority-owned and the board consists of 56% minorities and 44% women — far outpacing national averages.
Dillon proactively maintains a collaborative relationship with franchisees, a critical element of Denny’s success that helped the company quickly recover from pandemic disruptions, he says. He adds that connecting with all Americans is crucial to maintaining and amplifying Denny’s mantle as “America’s Diner.”
3. Always remember what made your brand great in the first place
One of Dillon’s mantras during his years with Denny’s has been staying true to the company’s roots. He balances innovation with the basic fundamentals of the business — outstanding food, exceptional service and a clean, welcoming atmosphere.
Like its founder said many years ago, Denny’s “loves to feed people,” and that simple message is one that Dillon keeps front of mind as he steers the company through good and challenging times.
As Denny’s continues to evolve to meet the changing needs of its customers, Dillon says he will remain focused on the company’s core values.
“We know clearly who we are and why we do what we do, so you can count on future evolution being done in an authentic, uniquely-Denny’s kind of way,” he says.
Here’s the bottom line
Modernizing a legacy brand by jumping on new trends in social media, investing in quality, aggressively embracing technology and improving relationships with staff and local communities is crucial for any company’s survival in a changing world.
At the same time, execs need to be careful to maintain the character and values that made their brand successful in the first place. Striking the right balance gives legacy brands a strong platform to reach new heights.
Katie Klumper is CEO and founder of Black Glass.
