Keke’s Breakfast Cafe is about to start opening a lot more restaurants.
Three years after it was acquired by Denny’s, the family-dining chain has already opened nine locations this year, with 11 more in the hopper. If that holds, it will be the most locations Keke’s has ever opened in a year, and would bring the chain to more than 85 total units. And it’s just getting started.
“We want to achieve a much more aggressive growth strategy across the country,” said President David Schmidt in an interview. “What you'll continue to see is growth of somewhere in the 25% to 30% range annually.”
Denny’s acquired Keke’s in 2022 with just that sort of growth in mind. After making some tweaks to the concept, like updating its restaurant design and adding cocktails, it is now ready to expand Keke’s in earnest.
Founded in 2006 in Orlando by brothers Kevin and Keith Mehan, Keke’s roots actually lie in the Northeast. When the Mehans relocated to Florida from their hometown of Philadelphia, they couldn’t find a good breakfast place, so they decided to start one themselves, Schmidt said. Their mother suggested they call it Keke’s, a mashup of their first names.
Keke’s specializes in breakfast classics like pancakes and omelettes. (A popular cheesesteak omelet is a nod to its Philadelphia heritage.) It has a diner feel, with lots of booth seating and fast service. And it prides itself on food quality. It uses fresh fruits and veggies, eggs are hand-cracked and its kitchens do not have microwaves, Schmidt said.
Keke's eggs Benedict.
The brand is part of a new generation of family-dining chains like First Watch and Another Broken Egg. Sometimes referred to as daytime-dining brands, they focus on breakfast and lunch and close in the afternoon. They often have innovative menus and many serve alcohol. And they are outperforming the rest of family dining.
Sales at these chains increased by an average of 13% last year, according to data from Technomic’s ranking of the Top 500 U.S. restaurant chains, while overall family-dining sales were flat.
At Keke’s, total sales rose 9% in 2024, according to Technomic. And it is off to a strong start this year, with same-store sales up nearly 4% in the first quarter.
Schmidt said the recent success hasn’t come from any one thing. The brand has always focused on service, quality and speed, with an average table-turn time of 38 minutes. That has earned it a good reputation with customers: Its systemwide Google review score is 4.85, Schmidt said.
The chain’s menu has not changed much since it was founded, but the recent addition of things like a kids menu and cocktails have provided a boost. Keke’s now offers mimosas, sangrias and peach Bellinis, bringing it more in line with some of its counterparts in the sector. Its average check rose 6.5% in the first quarter, in part because customers ordered more beverages, executives said during an earnings call last month.
“We're not selling, you know, bottomless mimosas to our guests,” Schmidt said. “But it is a really, really nice option for those guests that want a great brunch experience on the weekend.”
A redesign included brighter restaurants and lighter colors.
Keke’s has also begun investing in digital marketing for the first time, which has helped drive traffic. And it is embracing off-premise. In terms of share of overall sales, takeout and delivery are now in the high teens, up from the high single digits a few years ago. Schmidt would like to see that get to 20%. The chain has invested in packaging and staffing to better service the to-go channel.
“We've shown that it's been very, very highly incremental to our in-restaurant dining,” he said.
Another thing playing in Keke’s favor: shorter hours. Because it is only open from 7 a.m. to 2:30 p.m., staff can be off in time to pick up their kids from school. That has allowed Keke’s to attract good workers and keep them longer, which helps its restaurants execute better.
“I think it's just a combination of a lot of little things culminating in a little bit of a tailwind that we're just continuing to focus on and ride,” Schmidt said.
Though the vast majority of Keke’s locations today are in its home state of Florida, it is now in six other states as far west as California. It has agreements to open 140 new restaurants, many of them with existing Denny’s franchisees who can help establish the brand in new markets, especially challenging markets, "predominantly the West Coast," Schmidt said. “Tapping into that great expertise is going to be a huge competitive advantage for us.”
Keke’s has been well-received everywhere it has gone, Schmidt said. And he believes it can go anywhere, as long as the company can find the right operators to run it.
“The number one criteria I'm looking for is franchisees that have operating experience in specific markets,” he said.
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