Mulboyne wrote:Denny's isn't my dining venue of choice in Japan but there seem to be a lot of backseat drivers here claiming that their problem lies with their failure to follow the US menu when they had decades of success by not following it. It was only in 1969 that the law changed and allowed foreign capital to invest in restaurants in Japan and no-one knew what would work and what wouldn't.
I'm with Mulboyne here. I don't think the menu is their issue. In my old neighborhood, there were two Dennys less than a mile away from each along a major road, where virtually all customers came by car. The drive time between the shops was about two minutes. Both restaurants had a steady flow of customers, but the total number of customers in both restaurants at any given time could have fit into one. For years I was baffled whey they didn't shut one down. If Denny's has many situations like this, then maybe they simply overexpanded. I get the sense that the famiresu business is about location first, prices second, and menu third. When demographics change, they need to adjust.
It is easy to look at chains like McDonalds and KFC who followed the manual/menu and survived while forgetting the likes of Berni Inn, Hardee's, Pizza Inn, Orange Julius, Tastee Freeze and Arby's who all failed. Denny's thought they were pretty smart by localizing the menu from the beginning - a strategy McDonalds later followed - and they did well enough to spawn a fair number of imitators over the years.
Crap, I missed Orange Julius and Arby's?