Denny’s eyes UK expansion through franchise deals

American diner chain Denny’s is eyeing “significant” expansion in the UK as it considers a master franchise for the country. 

Business advisory firm FRP Corporate Finance has been appointed to assess potential partners to acquire the franchise of the brand, which operates from almost 1,500 diners globally.

As part of the sale process, FRP Corporate Finance is also marketing Denny’s proof of concept store, which opened at Parc Tawe in Swansea in 2017. 

The diner provides a full omnichannel model, supported by a loyalty app and a range of delivery services, including Deliveroo, Uber Eats and Just Eat. The diner is co-located with retailers as well as an Odeon Cinema, Ninja Warrior and Ten Pin Bowling.

According to Denny’s, the Swansea site has generated strong margins and “provides the basis for franchise investors to bring the Denny’s brand to city centres, airports, service stations and drive-thru sites across the UK”.

Established in 1953, Denny’s operates in 15 countries, including in Australasia, South East Asia, the Middle East, South America and North America, where it has more than 1,300 restaurants. More than 95% of its operations are franchised. 

Alex Patey, director at FRP Corporate Finance, said: “Denny’s is one of the most iconic names in global casual dining, with a proven model that combines strong consumer appeal, affordable family dining and scalable unit economics. 

“The Swansea diner has already demonstrated the household brand’s potential in the UK, and with clear opportunities across high streets, airports, service stations and drive-thru sites – as well as to introduce new models including self-service – we expect strong interest from ambitious operators looking to bring the Denny’s experience to more UK consumers in a segment where this type of offering has been lacking for many years.”