Denny's wants to rock 'n' roll all night long

May 27, 2008— -- Denny's wants to rock.

Yes, that Denny's.

The 55-year-old family dining chain known for its Grand Slam breakfast and 24/7 service, this weekend begins to revamp its late-night branding with a most unlikely image makeover aimed at twentysomethings via their taste buds and even their ear buds.

From 10 p.m. to 5 a.m., alternative rock will replace the middle-of-the-road music now piped in. Instead of black pants and collared shirts, wait staff will wear jeans and T-shirts during these hours.

The chain also is launching two late-night-only menus. One is a value menu with items such as nacho cheese fries for $3.99. The other is a "shareable" menu, with seasoned kettle chips, mini-burgers and $7 Sweet Ride Nachos — tortilla chips in cinnamon sugar, fruit, hot fudge and whipped cream. It's even hired alternative-rock bands to help create late-night items.

For Denny's it's a no-brainer: 47% of its late-night customers are under 24. Two of three aren't coming from work, but from spots like night clubs or bowling alleys. A trip to Denny's is to continue the party.

So Denny's wants to tweak the party feel. If it can bump up late-night business by 5%, it would boost sales by $26 million, CEO Nelson Marchioli says.

"There's a time when Denny's was cool, and we can get back there," Marchioli says.

But it's a risk, analysts warn. The company could alienate core late-night patrons — such as factory shift workers — by pandering to youth, says Linda Lipsky, a consultant. "These are folks who are spending real money instead of splitting one appetizer five ways."

It's gonna be tough to be a friendly breakfast spot in the morning and a rockin' hangout at night, says Bob Goldin, executive vice president at the consulting firm Technomic. But with store sales slipping and customer transactions down for eight of the last nine quarters, he says, "At least they're trying something."