Justin Sullivan/Getty Images
- Diner chain Denny's has simplified its menu to cut back on customizations and build-you-own options.
- CEO Kelli Valade said that Denny's was instead highlighting more profitable items.
- Modifications can bring in more revenues, but they often slow down service.
Denny's has simplified its menu to cut back on how much diners can customize their meals, and says it's helped make its restaurants more profitable.
The diner chain revamped its menu last year to make its kitchens easier to operate.
"Along with new product innovation, we simplified the menu layout while minimizing customizations and the build-your-own categories on the menu," CEO Kelli Valade told investors on Tuesday.
Valade said during Denny's previous earnings call, in October, that the customizations and build-your-own categories previously occupied "large areas" of the menu. She said Denny's was "downplaying" the customization options to improve operations and lessen the complexity of the menu.
"We've actually just kind of de-emphasized it, because so much of our menu had the ability to be customized, so we'll always customize when asked," Valade said.
Adding customizations means that it takes staff more time to prepare a dish. Labor is often one of the biggest expenses for restaurants.
Denny's menu revamp made its restaurants more profitable, Valade told investors on Tuesday.
"This new menu also led to margin improvements, given our strategic approach to highlighting our most profitable items and ones we know to be guest favorites," Valade said.
During the earnings call, Denny's executives spoke about the chain's Slam menu, which is made up of multi-component cooked dishes. Many come with pancakes or French toast accompanied by eggs, bacon, sausages, and hash browns or other potatoes.
Valade said that the chain's Original Grand Slam, which it sold for a promotional price of $5.99 at some restaurants, had been "incredibly successful" recently.
Business Insider has contacted Denny's for further information on how it has changed its customizations and build-your-own options.
Diners can, for example, choose how they have their steak cooked or what style of eggs and potatoes they'd like. Many of its breakfasts also come with a choice of bacon, turkey bacon, or sausage. Some of the customizations are available for free, while others incur a surcharge.
Denny's also offers a build-your-own breakfast where customers can pick from options including pancakes, meats, and eggs.
As well as having less of a focus on customization, Denny's menu update introduced more all-day breakfast offerings like new French toast dishes.
Valade told investors on Tuesday that Denny's was now selling more than 150 total French toast plates a week per restaurant.
Custom orders can be big business
Customizations generally slow down orders but can be profitable for restaurants.
For Starbucks, the plethora of possible beverage modifications, like adding syrups, cream, and alternative milks, differentiates the chain from its rivals.
It said in an earnings call in August that modifications are added to more than 60% of its drink orders and bring in $1 billion in sales a year. The coffee chain posted $36 billion in net revenues last year.
But customizations can also slow down operations by making preparation more complicated.
Starbucks baristas say that some customers deliberately order overly complex beverages that take longer to prepare and sometimes look undrinkable.
Subway, which historically prided itself on how customizable its sandwiches were, has focused on driving more diners toward standardized subs in recent years.