Competition among U.S. restaurant operators heated up yesterday, as Denny’s Corp. launched free Grand Slam breakfasts in an effort to reacquaint customers with its brand and showcase its meals as value-friendly options for cash-conscious consumers.
The restaurant chain was giving away the free Grand Slams, which usually sell for $5.99 and include pancakes, eggs, bacon and sausage, to any customer visiting its restaurants Tuesday between 6 a.m. and 2 p.m.
Denny’s promoted the freebie heavily, with a 30-second ad that aired during the third quarter of the Super Bowl, another 15-second ad during the post-game show and a full page ad in USA Today’s Monday editions. The company reported 40 million hits on its website between Sunday night and late afternoon Tuesday.
The Spartanburg, S.C.-based company ended the giveaway having served up two million free Grand Slams. Spokeswoman Cori Rice said each restaurant was able to churn out about 130 Grand Slams an hour. Some restaurants even gave away vouchers to people waiting in long lines or wanting to return later, she said.
Denny’s, which has more than 1,500 locations, sells more than 12.5 million Grand Slam breakfasts a year.
With consumers continuing to pull back on spending amid the recession, the U.S. breakfast market has become increasingly focused on value meals in an attempt to grab those still willing to spend but looking to get the most bang for their buck.
Starbucks Corp. plans to offer “several breakfast pairings” at “attractive” prices (Starbucks has been testing hot breakfast sandwiches in Canada for several months), according to comments made by chief executive Howard Schultz last week. Others fighting for a piece of the pie include McDonald’s Corp., which is offering new lower-priced specialty coffee drinks, and Dunkin’ Donuts, which has value-minded deals.
Rice said Denny’s recognized customers enjoy its Grand Slam breakfast, but can choose among several options when looking to spend their money.
“We need to compete and be in the consideration set,” Rice said.
To that end, the company said it is trying to change customers’ perceptions that Denny’s is only a place for a sit-down breakfast that will take a lengthy period of time. It can provide breakfasts to go, as well as have food prepared within 10 minutes if customers require fast service.
“We understand what the customer is wanting now,” said Rice.
