The Keke’s Breakfast Cafe chain that started in Orlando as the Florida Waffle Shop is growing well beyond the Sunshine State with 100 restaurants on the horizon including in Tennessee, Texas, California and other states.
The massive expansion is coming after Denny’s purchased Keke’s, which originated in 2006 on Conroy Road, for $82.5 million last year.
Keke’s has 56 restaurants, but Denny’s CEO Kelli Valade revealed there are 14 agreements with franchisees to open 100 more locations of the breakfast and lunch eatery. Eleven of those deals are with Denny’s franchisees.
The first Keke’s outside Florida is being built in Nashville.
“Their aim from the get-go was, ‘We don’t want this to remain a Florida-only concept,'” said Mark Kalinowski, president and CEO of Kalinowski Equity Research, which follows Denny’s and the restaurant industry. “The Denny’s concept itself is mature, so this is a way for them to have a vehicle that, if it works, could be a growth vehicle for years to come in terms of restaurants.”
Keke’s has also unveiled a new menu with fewer items, which reduces complexity in the kitchen and allows the chain to show off its ingredients, Valade said on an earnings call Monday.
“We’re leaning into that Keke’s special sauce to ensure that as we grow, we continue to demonstrate a differentiated offering to all of our guests through the new tagline, ‘Mornings from scratch,'” said Valade, also the former CEO of Orlando-based Red Lobster.
Keke’s, open 7 a.m. to 2:30 p.m. daily, serves waffles, omelets, paninis and other breakfast and lunch fare.
Lynn Desjarlais, a Keke’s fan who visits the chain two or three times a month, said the new menu makes a lot more sense.
“While the menu may be smaller, it doesn’t appear that way because the options that they’ve provided are still the same and more customizable,” Desjarlais said.
The 40-year-old Windermere resident, who even named her cat Keke, said there are about five or six Keke’s around Central Florida where she dines. She’s had no issues yet with how Denny’s runs the chain.
“I have not noticed any negative changes in terms of service, food quality, quantity,” Desjarlais said. “Everything has remained the same as always: great.”
The company believes there are opportunities to open more than one Keke’s in Nashville, according to an unsigned statement from Denny’s in response to questions from the Orlando Sentinel.
“Nashville was selected as the first Keke’s Breakfast Café market outside of Florida because of its growing economy and relatively friendly business environment,” the statement said. “We also believe the breakfast space is underserved in Nashville.”
Keke’s will be “quickly following” the Tennessee expansion into neighboring states as well as places like Texas and California where there are strong Denny’s franchisees.
Kalinowski said 100 restaurants was a surprising figure, but it shows franchisees are looking at the opportunities for the brand outside of its home state.
“Keke’s isn’t a huge concept. It’s not McDonald’s. It’s not Taco Bell,” Kalinowski said. “It’s still unproven outside of Florida, and no one knows for certain how it’s going to do, but these franchisees are stepping up.”
afuller@orlandosentinel.com
