Free Denny's breakfast on Tuesday
Feb 2nd 2009 5:00PM
Updated Feb 3rd 2009 12:47PM
"The Grand Slam has always been a Denny's favorite," says Nelson Marchioli, CEO of Denny's. "This free offer is our way of re-acquainting America with Denny's real breakfast and with the Denny's brand. You don't know the real Denny's unless you've been in our restaurants lately, experiencing the quality of our new menu items and our service first-hand."
Denny's estimates that it will give away two million breakfasts as part of the promotion. The company will be looking to convert the freeloaders into repeat customers by also offering coupon books with the Grand Slams.This promotion is certainly a publicity generator, but I have to wonder: What kind of impact will two million free breakfasts and two million free coupon books have on the company's profitability? Shares of Denny's are up nearly 6% the day after the Super Bowl commercial and the announcement of the promotion.
My WalletPop colleague Tom Barlow has crunched the rest of the numbers and come up with some good news for Denny's. You can see Tom's full analysis in his post, but the condensed version is this:
Tom has found out that according to the company's Annual report, there are 1,152 Denny's seating an average of 140 people per. If we assume an average of a half-an-hour per diner, then in an eight-hour window the restaurants could serve a maximum of 2,580,480.
x 140 people seated per restaurant
x 2 diners per hour
x 8 hours =
2,580,480 free Grand Slam breakfasts