Denny's

Denny's announces new organizational structure
13th June 2008
By Staff Writer
Denny's, a family-style restaurant chain, has redesigned its organizational structure to support its ongoing transition to a franchise-focused business model.
RELATED ARTICLES
Denny's and Pilot Travel Centers announce partnership10 Oct 2007
Denny's Q3 same-store sales rise11 Oct 2007
Denny's appoints new board members22 May 2008
Denny's $3.8 million growth in Q1 net income1 May 2008
Denny's Q1 system-wide same-store sales down16 Apr 2008
According to the company, it has completed an extensive review of its organizational structure. In April, the firm realigned its senior leadership with three executive officers reporting to the CEO. The company has restructured the organization under this leadership to effectively execute its new strategic direction with primary emphasis on sales, brand and franchise.
Additionally, the company has created four regional vice presidents of operations (RVP) positions that will have accountability for the performance of both company and franchise restaurants within a geographic region. The RVP's and their support teams will manage an integrated effort to drive guest counts, sales and profitability while ensuring operational excellence.
The new organizational structure increases brand and franchisee support, but also allows for consolidation of certain departments and job functions resulting in the near-term elimination of approximately 50 positions, the company said.
As a result of these staff reductions, the company expects to incur a restructuring charge attributable to severance and other expense of approximately $5 million in the second quarter of 2008, which will be paid out over the next 12 months.
Nelson Marchioli, president and CEO of Denny's, said: "Through the success of Denny's franchise growth initiative, the mix of franchised restaurants in the Denny's system is now up to 76%. In our quest to become a franchisor-of-choice in the restaurant industry, we must continue to evolve our corporate structure and mission to focus on driving sales, expanding the brand and providing valuable support to our franchisees."