Denny's costly mistake

Their £5m disaster could save your business

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In December 1988, the management of the US restaurant chain Denny's decided to do something nice for their staff.

They knew that it would probably cost them around £5m.

What they hadn't realised was that it would also result in them having to send an army of tradesmen out to every single one of their branches at very short notice.

So what was this gesture of goodwill?

And how did it turn into the kind of debacle that required so many tradesmen to come to the rescue?

Well, Denny's USP was that they had always been open 24/7, 365 days a year.

Catering to both the midnight snackers and the early risers alike, Denny's had always prided itself on its round-the-clock pancakes and endless cups of coffee.

But in December 1988, the management had a warm and fuzzy idea: they'd forgo an estimated £5m in sales in order to shut all the restaurants on 25th and give everyone Christmas Day off.

A lovely festive gesture, right?

But here's where things got tricky.

Since Denny's had never, and I mean NEVER, shut their doors before, they realised something quite alarming.

Some of their restaurants had no locks on the doors.

And others had locks but the staff had lost, or never been given, the keys.

And no-one had noticed, because they hadn't needed the keys since... well, forever!

So, across America on the night before Christmas, there were locksmiths frantically hopping from one Denny's to another, fixing or replacing locks like elves on a last-minute toy-delivery mission.

But instead of gifts, they were delivering the ability to close!

And they certainly created a Christmas Day surprise for those regulars who arrived the next day for their breakfast and were met with locked doors and empty stomachs.

The Denny's story reminds us that it's not always easy to decide what to do with your business during holiday seasons. And that if you choose to shut up shop it can have unexpected consequences.

When I first heard this story, it immediately made me think of those business owners I speak to every year who (wrongly, in my view) think they should pause their marketing in August or at Christmas because "no-one's going to be around".

Why do I think that's a bad idea?

Well, for several reasons.

Firstly, you'd be surprised how many people are still actively looking for solutions to their problems during holiday seasons.

Back in the mid-2000s when I was running a lead generation business, I had my computer set to make a cash register sound every time a new lead came in.

(Yeah, I know that’s a bit naff, but don’t forget we’re talking about an era when people paid good money to buy custom ringtones for their phones)

And I clearly remember my PC going ker-ching to announce a new lead arriving just as I was taking the turkey out of the oven one year on Christmas Day.

The second reason is about building momentum and habits. When you stop your marketing activities – whether that's posting on social media, sending emails to your list, or creating content – it's surprisingly hard to get back into the rhythm afterwards.

And thirdly, while your competitors are taking a break, you have the perfect opportunity to stay visible and build relationships with potential clients who are still active online during quieter periods.

Think of it as keeping your shop window lit while others have switched the lights off.

It's a win-win situation, really.

Knowing when to ramp up your marketing efforts and when to maintain consistency is crucial for any business owner who wants to build sustainable growth.

Whether you're running Google Ads, posting on social media, sending emails to your list, or creating content, the principle remains the same: consistency beats perfection, and showing up when others don't is often when you'll find the best opportunities.

If you want to learn more about building automated systems that keep working for your business even when you're not (including during holidays), then you might find my book helpful.

It's called Building an Automated Lead Machine and it shows you how to create marketing systems that generate leads and attract clients without you having to be constantly "switched on".

While others are snoozing, you can be building a business that works around the clock.

All the best,
David.

PS – Remember, opportunities often lie where others fear to tread. Keep your marketing going even when others have switched off, and you might just find yourself with a competitive advantage.

It's a bit like having your pancakes and eating them too!

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