EXCLUSIVE: Denny’s is preparing upgrades at roughly 500 restaurants as the iconic diner chain invests in artificial intelligence (AI), new technology and other initiatives aimed at winning back customers.
CEO Christopher Bode, who took the helm of the South Carolina-based company earlier this year, told FOX Business the restaurants are in line for some type of asset upgrade over the next 12 to 18 months, building on more than 200 remodels completed since the pandemic.
“We have 500 restaurants now in the queue to have some type of asset upgrade over the next 12 to 18 months, which is huge for us,” Bode said. “So facility modernization is really important.”
The upgrades are part of “Project Grand Slam,” Bode’s five-part, 24-month turnaround strategy focused on menu innovation, facility upgrades, catering, technology and operational improvements.
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Denny’s is also leaning into AI to better understand customer behavior, improve labor scheduling and food forecasting, streamline internal communications and adjust menu pricing based on local market conditions.
“You gotta know who your consumer is, and you gotta know it fast,” Bode said. “Everything is changing so fast these days. You can’t wait for data for nine months from now. You need to get it today.”
Bode said AI-powered tools help restaurants optimize menu prices based on local market conditions and demand.
“You can’t charge $6.99 for a breakfast plate in Raleigh and charge that same price in LA,” Bode said, noting that pricing can vary from one neighborhood to the next.
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Beyond AI, Denny’s is rolling out new point-of-sale systems, table-side tablets and an upgraded mobile app while expanding its catering business through a national partnership with ezCater.
More than 1,000 Denny’s restaurants have already joined the platform, which Bode sees as a major growth opportunity.
The investments come as restaurants compete for increasingly selective diners squeezed by higher living costs.
“Value used to be the end all be all in the industry,” Bode said. “You can get people in by giving them the right price, but now they want the experience to manage that price at the same time.”
Bode said restaurants must offer quality food, attentive service and modern dining rooms if they want customers to leave home.
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“If I go out of my home with my family, it better be worth it,” he said.
Denny’s is also celebrating the 50th anniversary of its Grand Slam breakfast by launching “Hometown Heroes,” a nationwide campaign honoring first responders, teachers, military members, healthcare workers and other local leaders.
Customers can nominate hometown heroes, with 30 winners receiving a catered Denny’s celebration for up to 50 guests.
“It’s just a way for us to be able to get back into the community, and thank folks for what they do,” Bode said.
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