Aging diner chain Perkins undergoes a change, unveiling a fresh identity.
The well-known chain famous for its desserts and breakfast dishes is undergoing significant renovations, which include a new title, a modification of over 250 establishments, and a revamped menu. The aim is to attract new customers who may have overlooked the chain, especially as aged equivalents like Cracker Barrel struggle to stay relevant amidst rising menu prices and altered dining habits following the Covid-19 pandemic.
Toni Ronayne, Perkins' President, describes the revamp as a new, contemporary feel that offers classic American cuisine from yesteryear in a setting that feels modern. The name change to "Perkins American Food Co." highlights the establishment's expanded offerings without sacrificing the widely cherished bakery.
The revitalized brand aims to resonate with American values and the comfort food it provides, offering a fresh, up-to-date, and relevant image to connect with new patrons while catering to loyal Perkins devotees. The new logo features a lighter shade of the traditional green, moving towards a more heritage palette while maintaining its retro essence.
In the coming years, restaurants will undergo remodeling, showcasing an updated design with modern subway tiles lining the walls, brighter flooring, new furniture, silverware, uniforms, and digital menu boards above the bakery. The iconic bakery will continue to be a significant feature near the restaurant entrance.
Perkins hasn't disclosed the costs of the renovations for franchisees. However, the company aims to expand its presence by creating more affordable versions of its restaurants. A new location featuring the recent changes recently opened in Orlando, Florida.
The menu will also experience changes, with an introduction of new hamburgers and updated ingredients in popular dishes, such as enhanced seasoning for its French fries. Perkins hopes these updates will convince customers that it's not just for breakfast and desserts.
The company has reduced the size of a newly constructed Perkins from 6,000 square feet to 3,500, with smaller kitchens and dining areas. To cater to limited spaces, Perkins is piloting a smaller prototype dubbed "Perkins Express" for locations like airports and mall food courts.
Perkins has focused on budget-conscious consumers, offering affordable meal choices, although the new menus will continue to provide value while remaining competitive in the market. According to Ronayne, value is crucial, and Perkins aims to be the industry leader in family dining, catering to both budget-friendly and premium options.
Many breakfast-centric competitors have faced economic challenges due to increased menu prices and stiff competition. For instance, IHOP and Denny's have reported decreased sales because of similar reasons, with the latter's stock value declining significantly over the past year.
However, Perkins' has faced its own struggles due to financial issues, double bankruptcies, and reduced location count over the past few years. The brand primarily appeals to Baby Boomers. To broaden its appeal, Perkins aims to reach other dayparts and occasions, as suggested by industry expert David Henkes.
Perkins is currently under the control of Ascent Hospitality Management since 2019, which also manages Huddle House. Ascent is investing in Perkins in an effort to revitalize the classic American brand and compete against rising fast food and fresher-looking upstarts.
Editor's Note: This article was updated on February 8, 2023, to clarify that R.J. Hottovy’s predictions on Perkins’ future were given in response to an interview request, and were not part of Placer.ai's official research findings.
In Summary: Perkins, a breakfast and dessert chain, is undergoing a major overhaul, including a name change, remodeling its restaurants, and revamping its menu. The aim is to attract new customers and stay competitive amid rising menu prices and changing consumer behaviors. The first location opened in Cincinnati, Ohio, as Perkins Pancake House in 1958. The brand has undergone various name changes over the years, with its current branding established in the 1970s. In recent years, Perkins has struggled with financial issues, reduced locations, and increased competition. Ascent Hospitality Management, the current owner, aims to revitalize the classic American brand and position it for success in the competitive market.
"She shared her thoughts on 'Perkins American Food Co.'s' current phase, stating it'd blend tradition with modernity, staying authentic to its roots. She acknowledged the potential for appealing to a wider customer base."
