Denny's is preparing to modernize roughly 500 restaurants over the next 12 to 18 months, pairing physical upgrades with artificial intelligence and new operational technology.
The push builds on more than 200 remodels completed since the pandemic, widening the chain's transformation across its domestic footprint.
Chief Executive Officer Christopher Bode, who took the top job earlier this year, described the scale of the investment in an interview with FOX Business.
"We have 500 restaurants now in the queue to have some type of asset upgrade over the next 12 to 18 months, which is huge for us," Bode said.
"So facility modernization is really important."
AI, pricing, and catering in the turnaround plan
The building upgrades form one pillar of "Project Grand Slam," a five-part, 24-month turnaround plan covering menu innovation, facility improvements, catering growth, updated technology, and operational execution.
Denny's is also adopting AI-powered tools to optimize labor scheduling, manage food forecasting, refine internal communications, and evaluate local dining market trends in real time.
"You gotta know who your consumer is, and you gotta know it fast," Bode said. "Everything is changing so fast these days.
You can't wait for data for nine months from now. You need to get it today."
The automated tools let local managers adjust dynamic menu prices to match regional demand and economic conditions.
"You can't charge $6.99 for a breakfast plate in Raleigh and charge that same price in LA," Bode said.
Alongside the software, Denny's is introducing updated point-of-sale hardware, table-side ordering tablets, and a redesigned mobile app.
It is also expanding catering reach through a national partnership with platform ezCater, with more than 1,000 locations already in the catering network.
Executives view catering as a primary channel for commercial growth as casual dining chains compete for cost-conscious consumers affected by persistent inflation and higher living expenses.
"Value used to be the end all be all in the industry," Bode said.
"You can get people in by giving them the right price, but now they want the experience to manage that price at the same time."
Attractive price points must be paired with operational execution to convince diners to eat out instead of at home, Bode said.
"If I go out of my home with my family, it better be worth it," he said.
Denny's is also marking the 50th anniversary of its signature Grand Slam menu item with a national community recognition campaign called "Hometown Heroes."
Customers can nominate local first responders, educators, military personnel, and healthcare workers, with 30 selected winners receiving a catered Denny's event for up to 50 people.
"It's just a way for us to be able to get back into the community, and thank folks for what they do," Bode said.
