Denny’s Enters Exclusive Test Agreement With Franklin Junction
Denny’s Corporation (DENN) announces an expansive agreement with Franklin Junction, the global leader in branded virtual restaurants. The agreement will provide at least 250 domestic Denny’s restaurants with geographic exclusivity to accelerate Denny’s market presence through Franklin Junction’s Host Kitchen® platform.
The partnership between Denny's Corporation and Franklin Junction represents a strategic move to expand Denny's market penetration through the use of Franklin Junction's Host Kitchen® platform. This collaboration is particularly noteworthy as it leverages the growing trend of virtual restaurants, which have gained prominence due to shifts in consumer dining behavior, especially amid the pandemic. By integrating with a minimum of 250 domestic restaurants, Denny's is positioning itself to capitalize on the off-premises dining segment, which could lead to increased revenue streams without the commensurate capital expenditure typically associated with physical restaurant expansion.
From a market research perspective, this agreement could enhance brand visibility and customer reach for Denny's, potentially translating into a competitive edge in the fast-casual dining industry. The focus on off-premises sales channels aligns with industry data indicating a sustained interest in delivery and takeout services. This strategy may also attract investors who are keen on companies that adapt to changing market dynamics and consumer preferences. However, the success of this venture will largely depend on the execution and the ability of Denny's to maintain quality and service standards through this new model.
From a financial standpoint, the agreement between Denny's Corporation and Franklin Junction could be seen as a capital-efficient method to drive growth. By utilizing existing kitchens in Denny's restaurants to create virtual brands, the company can potentially increase same-store sales and improve asset utilization without significant additional capital investment. This could result in improved margins and profitability, which are key metrics for investors. The geographic exclusivity granted to Denny's may also provide a buffer against competition in the virtual kitchen space within their operating regions.
It is crucial to monitor how this partnership impacts Denny's financials in subsequent quarters, particularly in terms of revenue growth and profit margins. Investors should look for evidence of incremental sales that contribute positively to the bottom line. The scalability of the Host Kitchen® model will also be under scrutiny, as it could set a precedent for how traditional dine-in restaurants can diversify revenue streams in the increasingly digital-focused food service sector.
The adoption of Franklin Junction's Host Kitchen® platform by Denny's underscores a pivotal shift in the food service industry towards hybrid models that combine traditional dining with digital strategies. The Host Kitchen® concept allows established restaurants to host other food brands virtually, thereby optimizing kitchen space and staff. This model can be particularly advantageous for Denny's as it can introduce new menu items and concepts to customers without the risk and investment of developing new brands from scratch.
Understanding the operational implications is crucial, as the success of virtual kitchens hinges on efficient logistics, quality control and maintaining brand integrity. It is also important to consider the potential impact on Denny's core business and brand perception. While the expansion into virtual kitchens can create new customer touchpoints, it is essential to ensure that this does not dilute the Denny's brand or negatively affect the dining experience for in-person customers. The long-term sustainability of this model will depend on consumer acceptance and the ability to maintain operational excellence across both physical and virtual formats.
01/08/2024 - 04:15 PM
SPARTANBURG, S.C., Jan. 08, 2024 (GLOBE NEWSWIRE) -- Denny’s Corporation (the "Company") (NASDAQ: DENN), owner and operator of Denny's Inc. ("Denny's") and Keke's Inc. ("Keke's") today announced it has entered an expansive agreement with Franklin Junction, the global leader in branded virtual restaurants. The agreement provides that Franklin Junction will partner with at least 250 domestic Denny’s restaurants providing geographic exclusivity for these restaurants to accelerate Denny’s market presence through its innovative Host Kitchen® platform.
“Our off-premises sales channels are a unique strength for Denny’s, and we are excited about the opportunity to further advance our leadership position in the market,” said Kelli Valade, Denny’s President and Chief Executive Officer. “This new partnership with Franklin Junction will allow us to deliver even more amazing guests experiences.”
The Host Kitchen® platform, pioneered by Franklin Junction, enables restaurant brands access to capital-free expansion in new markets as virtual restaurants, whereby orders are produced locally by Franklin Junction’s Host Kitchen® fulfillment partners.
“We are excited to collaborate with Denny’s to host new virtual concepts through their vast restaurant footprint,” said Rishi Nigam, CEO and Co-Founder of Franklin Junction. “With our groundbreaking Host Kitchen® platform, we are revolutionizing the way restaurants expand market share, and this relationship marks an exciting milestone in our mission to redefine restaurant economics and the future of dining.”
About Franklin Junction
Franklin Junction is the world’s leading virtual restaurant platform with operations in North America, Europe, and Asia and has been widely recognized for revolutionizing the foodservice industry by creating the concept of Host Kitchen®, which allows restaurants to maximize underutilized kitchen capacity by fulfilling delivery orders for other concepts, creating high-margin, incremental revenue for both host, and concept partners. Powered by proprietary eCommerce technology solutions and deep industry expertise, Franklin Junction enables restaurants to expand their reach, optimize resources, and meet the evolving demands of diners in a digital-first world. Franklin Junction’s technology suite includes AI-driven matchmaking, order generation, order aggregation, and operations solutions tools for supply chain, training, marketing, quality control, and accounting. For more information, visit franklinjunction.com .
About Denny's Corporation
Denny’s Corporation is one of America’s largest full-service restaurant chains based on number of restaurants. As of December 27, 2023, the Company consisted of 1,631 restaurants, 1,558 of which were franchised and licensed restaurants and 73 of which were company operated.
Denny's Corporation consists of the Denny’s brand and the Keke’s brand. As of December 27, 2023, the Denny's brand consisted of 1,573 global restaurants, 1,508 of which were franchised and licensed restaurants and 65 of which were company operated. As of December 27, 2023, the Keke's brand consisted of 58 restaurants, 50 of which were franchised restaurants and 8 of which were company operated.
For further information on Denny's Corporation, including news releases, links to SEC filings, and other financial information, please visit investor.dennys.com .
What is the name of the company mentioned in the press release?
The company mentioned in the press release is Denny’s Corporation (DENN).
What is the ticker symbol of Denny’s Corporation?
The ticker symbol of Denny’s Corporation is DENN.
What is the agreement announced by Denny’s Corporation?
Denny’s Corporation announced an expansive agreement with Franklin Junction, the global leader in branded virtual restaurants.
How many domestic Denny’s restaurants will be provided with geographic exclusivity through the agreement?
The agreement will provide at least 250 domestic Denny’s restaurants with geographic exclusivity.
What is the purpose of the agreement between Denny’s Corporation and Franklin Junction?
The purpose of the agreement is to accelerate Denny’s market presence through Franklin Junction’s Host Kitchen® platform.
