The Grand Slam

Denny’s has fired a shot over the bow of the restaurant industry with its unprecedented giveaway of Grand Slam breakfasts from 6 a.m. to 2 p.m. today. The $5.99 meal was free to any customer who asked for it during the promotional time period.  And everyone in the restaurant asked for it.

Denny’s ran a 30-second ad during the Super Bowl that announced the promotion, ran another 15-second ad during the post-game show, and had a full page ad in the Monday USA Today.
                                        
Nelson Marchioli, Denny’s CEO, comments on Denny’s Free Grand Slam giveaway in a press release today:

“We had an extraordinary day. We were hoping to reconnect with millions of Americans today…and we did. Customers showed us just how much they love Denny’s Grand Slam. We have received the most heartwarming comments from our servers, our managers and above all our customers. This Free Slam Day has exceeded our expectations in every way.” 

"Fast Facts on Denny’s Free Grand Slam giveaway:

• Denny’s served approximately 2 million Grand Slams across the U.S. An average of 130 Grand Slams were served per restaurant per hour over the eight hour event
• Denny’s doesn’t disclose specific cost information, but including the cost of the food, the Super Bowl spot and other production costs, total cost is roughly $5 million.
• There were approximately 40 million hits on Denny’s website since the Super Bowl giveaway spot aired on Sunday night.
• All restaurants were at capacity during the giveaway. Average wait time for Grand Slams was approximately one hour
• Tables were turned approximately every twenty minutes"

Fortune Magazine, which probably doesn’t spend a lot of time covering the activities of Denny’s, suddenly found them newsworthy. They reported in their online edition that:

Companies like McDonald’s have done well during this economic climate as the recession pushes people toward less expensive dining options. Marchioli wants to get in on the action and says Denny’s $4 Weekday Express Slam, a streamlined version of the Grand Slam, is comparable in price to what you would pay for breakfast at a fast food restaurant.

"I want to take back share," said Marchioli, who planned to help serve in some South Carolina locations. "For too long, we have allowed others to take share, whether it was Starbucks or McDonald’s. They’re fine competitors and I don’t expect to take all their business from them, but I’d like a little bit back."

"Free is hard to turn down," says Marchioli. If people couldn’t get in because of long lines, management had planned to give them a coupon for a free Grand Slam, which normally costs $5.99.

Customers might think that Denny’s is spending a fortune on them, but the biggest expense of all will likely be the Super Bowl spot. Thirty-second ads reportedly sold for up to $3 million. Because the cost of breakfast food is relatively low, said Marchioli, he thinks this could be a break-even opportunity for the company if just some people buy a beverage like a $1.85 coffee or $1.99 juice.

But what’s more important, according to Marchioli, is that visitors are reminded that the restaurant is a place for good food and good value - and that they’ll come back and spend some money. 

As retailers found during the December sales season, 70% off is the new 50% off. To get people’s attention during this economy you have to do something extreme. And that is exactly what Denny’s did. They got people up and into their cars and into the restaurant.  Customers will talk about this for a long time. And that is exactly what the promotion was designed to do.

A gutsy move. Congratulations Denny’s!