Denny's finds recession good for business

The recession that started in December 2007 roughly coincides with a turnaround year for U.S. restaurant chain Denny's, the company said.

In October, the chain raised its earnings expectations for 2008 to $20 million, a jump of 90 percent above its 2007 earnings, the Miami Herald reported Monday.

Chief Executive Officer Nelson Marchioli said the turnaround actually began three years ago.

Marchioli, a former Burger King executive, said he closed 139 restaurants in his first 15 months with the company and "I didn't do that because they were good."

In the past three years, however, the company has revamped its menu, added specialty items and attempted to bring out a new image.

"If you haven't been to Denny's in the past three years, you haven't been to Denny's," Marchioli said.

The message falls in step with the Marchioli's efforts to increase the restaurant's repeat business.

Marchioli also said, "This economy is a perfect time for Denny's."

"If you think about it, people are pressed for money," he said. "Value is a big deal. The chains that are doing well have a value message and they talk about it," he said.