The Committee to Enhance Denny's Corporation (DENN), which is a group created by investors Oak Street Capital Management, and Dash Acquisitions, has filed a preliminary proxy statement that marks the beginning of an effort to shake up the company's board of directors -- and increase shareholder value.
The proxy statement filed with SEC calls out the company's management, board of directors, track record, executive compensation, and overall failure as evidenced by the company's poor share price.
The statement nominates three members of the Committee to Enhance Denny's to the company's board of directors, including Jonathan Dash, who recently made headlines when he trashed the company's food in an interview with the Wall Street Journal.
The statistics and allegations set forth in the preliminary proxy make Denny's board's position look pretty indefensible. Stay tuned for the company's response.
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Reader Comments (Page 1 of 2)
3-18-2010 @ 7:09AM
JohnnyTalltrees said...
I LIKE DENNY'S!!!!!
3-18-2010 @ 7:57AM
john said...
Denny's needs to refurb the interiors and keep them clean. The food is not really bad, but the tattoos and a dozen earrings in the waitress' ears kind of ruin my appetite.
3-18-2010 @ 8:54AM
Myrna Trial said...
Dennys CEO should be on "Undercover Boss". My last two visits to Dennys were not happy ones. I will definitely be going elsewhere when I want breakfast out.
3-18-2010 @ 8:57AM
Tom B said...
Denny;s lives or dies by their brakfast and the last tine I had breakfast there was a disaster... the eggs over easy where perfectly cooked but they looked like they came out of a pidgeon, not a mature chicken...To call them small only starts to describe them...It's 11am on a Wednesday and I hear, I am sorry we are out of the sausage links, can we substitute the turkey sausage patty. The patty was tasteless cardboard that was the size of a silver dollar and I only got one to replace the two links ordered... The bacon ??? If they sliced it any thinner, they might make it through the whole week on a pound of it... The hash browns were terrible and the toast was cold... The jelly was good, but how can you screw up a package of smuckers...
As I left I noticed that the box for the customer comment forms was empty...
When I got home I left an online comment about my experience and recieved nothing more than a sorry about that. and please try again.... Hail no I won't
3-18-2010 @ 9:06AM
vidanelson said...
A friend and I went to Dennys and she ordered three pancakes. After about 20 minutes we asked where they were and we saw the waitress go back and was arguing with the cook. She came back and said the breakfast person had gone on break and the other cook didn't do pancakes. After another ten minutes we asked to speak to the manager. He came over and said he would see to it my friend got her pancakes. We watched him go back and cook them himself. It to 30 minutes and all we got was an apology. The least they could have done is give my friend a free drink or something.
3-18-2010 @ 9:29AM
sandy said...
I work for Denny's years ago for 10 years. Half there problem was they never had enough cooks on, so customers would wait over 1 hour for a Grand Slam, and it was cold by the time our customers got it. Then it would affect the waitress tips. When you a mom trying to raise small children, waitressing was a good way of making a salary, but there it was tough because of those reason.
3-18-2010 @ 9:09AM
vidanelson said...
Dennys in every town I've lived has a reputation for being slow.
3-18-2010 @ 9:16AM
John S said...
They used to be my favorite place to go. Then they changed management, and the quality of everything from the coffee to the service went down hill. I believe they were once based in CA, and switched to SC.
3-18-2010 @ 9:27AM
Laura Cutrer said...
Every Dennys, in different cities, my family has visited is not just dirty but gross! My family and I will not eat at Dennys anymore!
3-18-2010 @ 9:58AM
Evelyn Duncan said...
There's only one Denny's in Tulsa; the rest closed when the only franchisee went out of business. I really don't see a future for Denny's here, not when you have Village Inn and IHOP.
3-18-2010 @ 10:13AM
basketpam said...
I don't know about the rest of you but I would be just as happy if Denny's disappeared forever. I won't eat there ever again. I've tried eating there several times over the years and EVERY times it's been a sick, disgusting disaster. First of all is the type of people it attracts. Now don't get the wrong idea, I AM NOT a snob, I am appreciate all sorts of people in this world. And this is NOT to say this is all their patrons, but I have been seated in their waiting areas more than once and have been stuck right beside some of the DIRTIEST, SMELLIEST people I've ever seen in public. There it's no sin in being poor, but it is to be that dirty. There is NO reason on the face of this earth that people can't take a bath and at least wash their clothes. They have enough money to eat a meal out in a restaurant, they have enough money to buy some soap, shampoo and some detergent. Another trip I was seated in my booth eating with a friend watching the waitress clean off the table in front of me and watched her eating food off the plates as she took them back to the kitchen. GROSS!!! Any Denny's restaurants I've been in have usually been dirty and poorly kept. They're just disgusting places all around. I can stop at Bob Evans, the Waffle House and many other places and never experience the things I do at Denny's. I think I'll stick to the other restaurants.
3-18-2010 @ 10:28AM
Tacapa said...
Correct me if I am wrong.....Akeem Olajuwan(sp?) bought Dennys....employed relatives to run the company.....
The Dennys quality of food, service, etc keeps me from walking into a Dennys.
Dennys was once the best place to have breakfast.
3-18-2010 @ 11:03AM
Bernadette said...
I worked for Denny's for the better part of 22 years as a server, cook and manager. The company was headquartered in La Mirada, CA for many years, but moved the HQ to Spartanburg, SC about 20 years ago. In the last few years, it went from being mostly 'company' stores with some franchisees to a nearly complete franchised system. This is when the quality really went downhill. No real consistancy in service or food quality exists, as each franchisee sets their own standards and they just don't match what the company used to require.
It's too bad, because it is probably the most recognizable of the family-style dining brands. I was proud to work with the company back then, but nowadays the local restaurants would have to really pay me well and give me free reign to turn things around! I'd likely have to start over from scratch- I would not be on anyone's favorites list!
3-18-2010 @ 11:12AM
Wish Belkin said...
You will notice that every negative comment boils down to poor people management.
If The Committee to Enhance Denny's Corporation can cut some of their fixed costs and hire properly they may save the company.
On the other hand, the brand is severly damaged. It may be too late.
3-18-2010 @ 11:58AM
J,J, said...
Some people think it's Denny's fault their patrons need a bath. Interesting logic. But then , if you're going to "type" people in the first place, then there's probably more wrong than their predjudices, and in how they think in general.
I find Denny's hard to fault when they GIVE away FREE Grand Slam breakfasts, for an advertising promotion. I suppose since their greedy little republican stockholders want more profit, that promotion will dissappear. A pity.
3-18-2010 @ 12:15PM
bholt said...
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3-18-2010 @ 12:16PM
wordman238 said...
I used to work at Dennys and our manager would make us keep the place spotless. He would do shift and random inspections. Everything and I do mean everything had to be perfect. He was a damn retired US Marine. I felt like I was back in the Navy.
3-18-2010 @ 12:36PM
z1p9q7 said...
The group written about in this article isn't working to improve Denny's. They want to, "increase shareholder value". That means sell cheaper( @ wholesale cost) food, raise prices if they think they can, pay less to workers and company executives, spend less on maintaining restaurants, have less people on the shifts, and find other ways to loot the company and pay more to shareholders (themselves). They would outsource the business to China if there was a way to do it. If they run the restaurants down so badly that they do go out of business, they won't care, all that much, because they have already taken out as much money as they could, and they'll just go on to another business and buy in (with their extra money that they squeezed out of Denny's) and do the same thing, again.
3-18-2010 @ 12:33PM
Big Manson Mamma said...
I travel full time. I have spent a pretty good amount of time at many Dennys all across the country. In the middle of the night it can be quite entertaining. The management is a real problem. The things that the wait staff are asked to do is unbelievable. These guys get $2.15 an hour. I have seen them forced to close down entire sections for hours at a time, deep clean, shampoo carpets, wash walls, clean lights, take apart grills, soda machines, and major parts of the kitchen all while getting paid $2.15 an hour. The tips suck in lower east coast (DC to fla) as most folks think it's ok to drop $2.00 on an 8 top table. If the bill is over 20 bucks the tip needs to reflect that. I like the tattoos and piercings and I understand a hungry worker eating left over food. Have you ever been hungry? I have seen a waitress leave with $35 after an 8 hour shift. It was not enough to pay her babysitter let alone a meal, rent, soap, detergent, etc. The system would work better if the management was asked to do something other than lower costs and bark orders. It sucks. The entire operation not just the food.
3-18-2010 @ 12:48PM
OU812IC? said...
Living in the Northeast, i have NEVER been in a Denny's in my life nor will i ever be..I give my busines to the local mom and pop dinners and eateries.. The ones that have been around for years and the new and upcoming ones as well. I believe in supporting my LOCAL merchants not Chains that the cooks are changed every 2-3 weeks, the help is not even average. I go to places where they know me by name and i know them. I know im getting quality food and quality service..Support YOUR local merchants. As the saying goes, "you can't make chicken salad out of chicken sh*t".. Denny's huh?? NO THANKS...