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 2 of 2)
3-18-2010 @ 1:10PM
Iris said...
I worked for Denny's Corp as a GM and it was the most stressful, difficult, and life-altering experience. I worked endless hours, never was allowed enough staff to run a 24/7 restaurant, and was continually baffled as to why the company felt the standards in place were good, functional, or appropriate. Upper management was clueless and I earned the right to pass such judgment for I have more than 13 years of college education and more than 25 years of restaurant and business management experience - yet not one person took advantage of my skills and knowledge. It had become clear that Denny's wanted "warm bodies" - warm bodies (ie. managers) who would put in 100 - 120 hour work weeks and be willing to pick up the slack for absent staff - meaning managers were expected to do ALL job duties in place of staff; thus, the company saved on labor costs. Customers need to understand that most Denny's employees to include managers are trying to survive under very harsh working conditions with no support from upper and corporate managment. Personally, I lost most of my hair, never saw my children, my marriage ended in divorce, was hired to work 40-50 hrs. per week - worked 100+ - was paid for a 40 hour work week for years, and for what - to be treated with disrespect and continued harsh treatments and harsh work load and hours. I ended up quitting Denny's, of course, only after losing out on so much in my life. I know Denny's is losing its customers - a no brainer there, for those employees who did care or who do care are leaving; with a high employee turnover rate, lack of staff, "warm body" managers and attitudes along with a lack of professionalism, who would want to work or eat at Denny's? If Denny's wants a change, wants a clue as to what has been the problem with its business model, then contact those GMs and Managers who were dedicated and who have walked away. It takes a very experienced, knowledgable, and strong person to manage a 24/7 front and back of house restaurant especially if it was run successfully, so why did we quit or resign? I know Denny's has lost a lot of good people - the people who used to run a good restaurant and the customers who used to say good things about Denny's. Think about it Denny's!
3-18-2010 @ 2:04PM
Lynda said...
I live in the MidWest. I think Denneys is just going down hill because they can't keep enough help to work slave wages. They want the public to pay the tips, well they should get the service. If I pay 2.99 for iced tea, I want some refills. They are a hit and miss company. You must support the local merchants or you have to live with the poor service. That is the bottom line here.
3-18-2010 @ 2:18PM
Office Manager said...
IHOP.. nuff said!
3-18-2010 @ 3:10PM
golfinkatiekat77 said...
I don't know what you expect as far as a waitstaff other than body pierced, tattoed people. When you're only paid between 3-4 dollars per hour (they have claim enough of their tips to make up the difference to minimum wages), then I think you get what you're paying for! They have pretty good food, served at best by an apethetic waitstaff who wait on mostly teenagers skipping school, drunks until the bars open, drunks after the bars close, and most of the time, don't get tipped!