Dive Brief:
- Keke’s Breakfast Cafe has a development pipeline of more than 140 units that will allow the Florida-based brand to continue growing nationally. The chain expects to reach 25% to 30% annual unit growth, according to a press release on Tuesday.
- This year the chain opened restaurants outside of the Sunshine State where it has over 50 units. Keke’s opened locations in Nashville, Tennessee; Sunnyvale California; and Highlands Ranch, Colorado. Additional cafes will open in Florida, Georgia, Texas and Nevada early next year.
- Keke’s has been rapidly expanding since Denny’s bought the breakfast chain in 2022 for $82.5 million.The brand has 61 units as of Sept. 25, up from 52 at the time of the purchase. Once built, the committed units will bring it to about 200 restaurants.
Dive Insight:
In addition to its national growth strategy, Keke’s is refreshing its brand with a new visual identity, redesigned logo and new marketing that looks like an orange — an homage to its Florida roots.
The restaurant brand also has a new design concept, which debuted in Hendersonville, Tennessee, with brighter decor that will be used across all of its new locations. The Hendersonville store also will serve as a framework for stores that are remodeled.
Most Keke’s units have not undergone a remodel since they opened. Its first 53 restaurants all had black ceilings, dark floors, brown walls and purple booths, David Schmidt, Keke’s president, said during Denny’s October investor day.
The new design maintains Keke’s booth-heavy layout, but includes brighter colors, white ceilings and more windows, he said.
Keke’s has five cafes with the new design as of November. It completed its first remodel in July in Orlando, Florida, where the company is based. The chain is seeing sales increase in remodeled locations and plans to complete three more by the end of the year.
Keke’s has been investing in technology and menu innovation as well. It launched a new website and is working on adding new online ordering software, according to the press release.
Schmidt said multiple locations are testing a new point-of-sale and kitchen-display system, which will make its kitchens more efficient.
For menu innovation, the chain reworked its kid offerings, added seasonal menu testing and expanded beverage choices to improve the quantity and quality of items for guests.
Previously, the chain’s kids menu included items that were essentially the same as what’s available for adults. The revised kids menu now has items such as a Kids Favorite Combo. This includes a pancake, waffle or french toast stick, a scrambled egg and slice of bacon; along with chicken fingers and fries.
Keke’s is employing an asset-light strategy for growth and is actively recruiting new franchisees.
Prior to its Denny’s ownership, the chain grew without marketing. Many of its franchisees joined the system after becoming loyal customers, Schmidt said.
The chain’s current portfolio includes nearly 20 franchisees, meaning the average franchisee has about 3 units. The company is looking for new franchisees who aren’t part of Denny’s portfolio, especially since many franchisee operators don’t necessarily have the structure, desire or ability to open new restaurants.
“We're looking into new markets. We're looking for more experienced operators,” Schmidt said. “We’re willing and able to commit five to 10 units as we're signing new development agreements.”
