Denny's CEO Responds to Comments on Affordable Care Act

Denny's CEO Responds to Comments on Affordable Care Act

SPARTANBURG, S.C.--(BUSINESS WIRE)-- Denny's Corporation (NAS: DENN) , franchisor and operator of one of America's largest full-service restaurant chains, today issued the following statement on behalf of John Miller, Chief Executive Officer of Denny's:

Comments from an owner of multiple franchises including Denny's regarding his plans to offset the expected costs associated with the Affordable Care Act received considerable media attention in the last 24 hours. While we respect the decision of an independent business owner to speak out on this or other topics and express their personal views, his statements do not capture the respect by Denny's, the Denny's Franchisee Association or our franchise community at large for our hardworking employees or for our valued customers.


Unfortunately, the comments of this franchisee, who represents less than 1% of our system and who owns restaurants in other concepts, has been portrayed as reflective of the entire Denny's Brand. I am confident his perspective is not shared by the company or hundreds of franchisees/small business owners who make up the majority of the Denny's community. Specifically, his comments suggesting that guests might reduce the customary tip provided to their server as an offset to his proposed surcharge are inconsistent with our values and approach to business throughout our Brand. Our restaurant team members work tirelessly day in and day out to create a pleasant dining experience for our guests and we believe they should be rewarded for providing the good service we are known for rather than penalized due to legislation. He has since revised his earlier position.

Denny's franchisee-owned and company restaurants are a vital part of their communities, providing jobs for local residents and a gathering place where our guests can come together to enjoy America's Diner. Collectively we will continue to monitor the developments of the Affordable Care Act and any other legislation that may impact our team members, franchisees, employees and guests and will do the right thing as individuals, as a company and as a Brand.

Denny's prides itself on being an exemplary corporate citizen working to do right by our franchisees, our guests who support our brand and our employees who are on the frontlines in our restaurants every day. Denny's Guiding Principle, "Embrace Openness", has led to an extraordinary 63% Minority Franchised System with company restaurant management exceeding 44% minority representation. We have been named a top 10 franchisor by Entrepreneur Magazine for the past several years, finishing first in family dining in 2012, and we take that honor seriously. Denny's continuously looks for ways to support our local communities as well through many national and local programs such as hunger relief through the "Dine Out for No Kid Hungry" campaigns; the LULAC National Scholarship Fund; support for the Tom Joyner Foundation Scholarship programs and Habitat for Humanity to name a few.

About Denny's

Denny's (NAS: DENN) is the franchisor and operator of one of America's largest full-service restaurant chains, based on number of units. As of September 26, 2012, Denny's had 1,687 franchised, licensed, and company-owned restaurants across the United States, Canada, Costa Rica, Mexico, Honduras, Guam, Curaçao, Puerto Rico, Dominican Republic and New Zealand. For further information on Denny's, including news releases, please visit the Denny's website at www.dennys.com.



For Denny's Corporation
Liz Brady DiTrapano, 646-277-1226
lbrady@icrinc.com

KEYWORDS:   United States  North America  South Carolina

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ryansouth

Good article! Did anyone see the funny article on Denny's Diarrhea on Milk the Bull?
http://milkthebull.com/2012/11/17/dennys-customers-forced-to-go-elsewhere-to-get-diarrhea/

November 17 2012 at 1:36 PM Report abuse rate up rate down Reply
Sparky

Mr. Miller

Thank you for your response in setting the record straight where Denny's Corporation stands in relation to the franchisee's position on applying a surcharge to Denny's customers' bills.

I agree with you completely in that the independent business owner has a right to speak their mind and opinion. However, this independent business owner is a franchisee of your corporation. His restaurant carries the name of your corporation and this franchisee is using your brand and corporate name as a forum to bully his employees and spit in the face of his customers.

I actually read an article about this while sitting in a Denny's this morning. I've eaten at Denny's for over 35 years all over this great country, Guam, Canada, Costa Rica and Puerto Rico. And while I understand your statement that the franchisee owns only about 40 Denny's stores, I can no longer visit any Denny's location in good conscience. Whether intentional or not, the appearance indeed is that his statement is reflective of your corporation. And as long as he holds the Denny's name on his restaurants, the appearance is that your corporation supports him despite your published response. So the question remains, what action will your corporation undertake to remedy the appearance that this franchisee speaks on Denny's behalf?

When I go to a restaurant, I want to escape and enjoy a meal. I don't want a political cloud hanging over my head. I want to eat in peace without some penalty being assessed on me.

November 16 2012 at 11:10 PM Report abuse rate up rate down Reply