Denny’s Goes All-In on Catering as Part of Comeback Plan
This story was originally published on FSR. To receive daily news and insights, subscribe to our free daily FS Insider.
Over 400 restaurants are currently on the ezCater platform.
Catering is a big opportunity for Denny’s.
CEO Chris Bode notes that two of the company’s largest competitors generate roughly $150 million in combined annual catering sales. Denny’s earned $1.5 million last year.
“It’s a huge channel that we’ve opened up for our franchisees because we see it as an opportunity for incremental revenue pretty quickly,” Bode says.
To capture these dollars, the breakfast giant recently launched a revamped national platform via ezCater. Currently, over 400 restaurants are live on the platform. Denny’s anticipates reaching about 1,000 by the end of September. The goal right now is to reach $50,000 in catering sales per unit by the end of 2026, and $100,000 per unit in year two.
ezCater data shows about $600 billion in breakfast business available within a 15-mile radius of Denny’s locations across the U.S.
“Now, we don’t believe we’ll get all of that, but if we get a piece of that, even a small piece of that, it easily allows us to get to the targets that we set out. So that’s what success looks like, and that’s why we’re getting into the business because the opportunity is real. It’s out there,” Bode says.
Denny’s catering menu features breakfast buffets, individually packaged meals, handhelds, lunch spreads, sides, desserts, and beverages.
Given Denny’s breakfast equity, Bode says it was just as meaningful for ezCater to partner with the chain.
“Breakfast is where we believe the biggest opportunity is for our brand and quite frankly on ezCater. That’s the daypart that they had the least amount of brands engaged in because not many brands have breakfast,” he says. “We do, and it was really exciting for them to get Denny’s on their platform. So we see breakfast to be the opportunity, but we do believe over time it’ll build the other dayparts and awareness on the other dayparts, particularly around the menu. We’ve designed this menu in such a way that we got a really good breakfast offering, but then we have a really nice offering for other dayparts as well.”
So far, orders are coming in as expected, averaging roughly $350 each, and stores are already seeing repeat business and margins that are “pretty significant.” Since demand is generally spread throughout the day, the program has not required additional labor. The main exception is an unusually large order that may require a manager to adjust staffing within 24 hours. Most catering sales occur during the week.
Bode expects to capture existing guests by advertising the catering channel on Denny’s loyalty app and attract new guests by promoting on social channels and via ezCater’s website.
“The nice thing about catering as well, while it’s a new channel for us, it also engages a new Denny’s customer with the potential of ‘I didn’t know Denny’s had this product,'” the CEO says. “And then it engages them in a way that now we get a dining guest out of that catering guest. That’s how we see it unfolding.”
Also of note, Bode expects to capture existing guests by advertising the catering channel on Denny’s loyalty app and to attract new guests through social channels and ezCater’s website.
“If you think about Thanksgiving and Christmas, a big opportunity there,” he says. “I don’t know if we’ll get there by Thanksgiving, but Christmas time, we should be able to stand up home meal replacement within this arena to be a plus up from a sales perspective.”
This isn’t the first time Denny’s has attempted to roll out catering. Bode says the brand tried it years ago, including a relationship with ezCater, but without any proper menu, training, education, or packaging.
Denny’s now places strict requirements on franchisees before they are allowed to move forward with ezCater. This is to ensure that when a location does come online, it is operationally prepared, receives favorable ratings, and performs well with ezCater’s algorithm. The company passed along training programs through its e-learning platform to inform management staff and above-store leaders about how the new channel would work. Corporate teams were tasked with watching webinars and passing modules to gain knowledge around the menu, packaging, profitability, algorithms, and all metrics associated with performance.
Bode acknowledges that while some operators have done a good job thus far, others have been held back. Ultimately, he estimates that around 80 percent of the system will be on the platform.
“We said you’re not ready because you haven’t met the requirements,” Bode says. “You haven’t met the training associated with it. Maybe you don’t have the right packaging in place yet. It’s really important to make sure that execution is really high. We’ve also told certain franchise groups you can’t play because we don’t believe operationally they’re going to do a good enough job, so we’re holding them back from even engaging in the platform itself.”
The push for catering is part of Denny’s overall Project Grand Slam, a multi-year comeback plan eyeing $2.5 million in AUV, up from $2 million.
Aside from catering, the strategy calls for systemwide remodels, an investment that many franchisees are in favor of. Bode expects a ‘significant’ number of assets to be improved over the next two years. Also, Denny’s is focused on elevating its bottom quintile stores by staffing them properly, cleaning the facilities, and implementing all of the necessary repairs and maintenance.
Technology is another major component, particularly the updated loyalty app. Denny’s can now communicate more effectively with guests, and the app saves customer information instead of requiring users to re-enter it with every order. Then there is food and beverage innovation. The chain recently launched $9.99 Triple Play combo meals featuring an appetizer, entrée, and drink for $9.99—a platform that’s already mixing well. Frappes are coming to the menu as well, in addition to an improved coffee lineup.
To Bode, all of the work by Denny’s signals to employees and customers that “OK” is no longer good enough.
“I look at brands like some of these AM eateries that came along over the years. Why do they exist? I ask my team this all the time—why do they exist? Because we let them. Legacy brands did not evolve, and it’s time for Denny’s to be that legacy brand that evolves, and that’s where Project Grand Slam comes from,” Bode says.
Ferguson Enterprises Inc. (NYSE:FERG) is one of the best water infrastructure stocks to buy as AI data centers strain resources. On May 5, 2026, Ferguson […]
