Another Round of Free Breakfasts at Denny's

A line at a Columbus, Georgia Denny's. photo/bmm

SPARTANBURG, S.C. - Denny's (NASDAQ: DENN) is offering a free Grand Slam Breakfast giveaway today between 6 a.m. and 2 p.m., a repeat of last year’s offer the firm says drew in 2 million customers.

The chain of 1,500 company-owned and franchised restaurants launched three commercial spots by ad agency Goodby, Silverstein & Partners in Sunday's Super Bowl to entice customers into its doors today. The ads featured hens screeching at the news that they had to lay so many eggs in preparation for today's events.

"We are leveraging the power of Super Bowl once again to connect with our customers to keep Denny's in their hearts and minds by communicating our Original Grand Slam offer," said Nelson Marchioli, CEO of Denny's. "This year Denny's will even go beyond just one day of free meals by offering a number of everyday affordable programs all year."

Denny's falls under the midscale restaurant segment, which has been harder hit than the restaurant sector as a whole.  Data shows total industry compared to midscale.  Average eater check for midscale morning meal is $7.43.

The free breakfast is an attempt to lift traffic and brand appeal, creating long-term patronage for the chain, despite being in the middle of the sagging midscale restaurant segment.

It has not been a smooth ride for the restaurant chain. Denny's chief executive officer declared a leadership shakeup in December. "Our comp store sales have been a challenge," Marchioli announced as several key officers were released. "As the external operating environment remains difficult and the industry increasingly competitive, it is necessary to ensure we have the leadership that can drive sales and the brand forward as it progresses in its transition to a primarily franchise-focused business model."