A Grand Slam: Denny s SoCal Succe Story

Who among us hasn't eaten at least one meal at Denny's? You'll find many types of people eating at this American favorite - hungover college students, vacation-goers, long-haul truckers, and rambunctious families. They come for the comfort food, the big portions, and the low prices. But many people don't realize that Denny's was founded right here in Southern California, by a man whose pie in the sky dreams changed the food industry forever.

Great Food, Great Service, Great People Every Time - Denny's proprietary slogan

Harold Butler was born in chilly Rochester, New York. His father was a button salesman, and from an early age Butler proved to be an enterprising salesman. As a child he sold maggots to fishermen as bait, and later resold his father's discarded sample buttons to tailors. In his teens, he started a successful building supply store.

By the time he was 21, Butler had made his first million dollars. But unwise investments in the stock market decimated his fortune. Ashamed to tell his parents about his dire financial situation, he borrowed $2,000 from an uncle and bought a donut machine. In the early 50s, he packed up his possessions, including the machine, and headed for sunny Southern California, determined to start again.

Dannys Donuts, Garden Grove. | Photo: Courtesy of Chris Nichols, Los Angeles magazine

Fun Dennys Fact: For over 30 years after opening its doors in 1953, most Dennys restaurants did not contain locks. This changed in 1988, when most Dennys closed in observance of Christmas after remaining open 24 hours a day, 365 days a year, for just over three decades.

In 1953, Butler and partner Richard Jezak opened Danny's Donuts in the small town of Lakewood, California. I put my last $50 into that first doughnut shop, Butler recalled years later. According to the Los Angeles Times, Butler's first years in SoCal were filled with ups and downs:

an industry enigma. It started out as a 900-square foot donut shop in Lakewood that sold fresh donuts stuffed with jam (not jelly) and served high quality coffee-something few competitors offered. Early success prompted Butler to build a second Danny's in Garden Grove, but customers failed to show up. Butler says, I found out I couldn't walk on water. Instead of sinking, he added a grill. Suddenly, he operated a donut shop that also sold hamburgers.

Butler continued to expand the menu, adding popular breakfast foods and lunchtime staples. I love to feed people, Butler once remarked. The no-frills chain's success buoyed Butler's simple belief that a plateful of good food is enough of a draw to attract plenty of customers. It also fit perfectly in with the growing car culture of the times. As more people became middle class, they took more vacations - usually using the state's expanding freeway system. Butler began to keep his diners open 24-hours a day to appeal to commuters and travelers. After we opened our fifth restaurant, Butler remembered, I looked at all the traveling going on in California and said to myself, My God, this is the future.

Dennys Coffee Shop Menu Cover, 1960s. | Photo: Roadsidepictures/Flickr/Creative Commons License

By 1959, Jezak had bowed out of the business, and Butler had opened 20 Danny's restaurants. This meteoric growth was facilitated by an aggressive franchising push and the fact that Californians were hungry for the kind of fast-serve, sit-down restaurant model that Danny's pioneered. That year, he also changed the name - which he had picked simply because he liked the sound of it - from Danny's to Denny's, to distinguish his restaurants from the popular Coffee Dan's chain.

By 1966, there were 101 Denny's restaurants (78 franchised, 23 company owned) in several western states. Harold in many respects was the father of franchising in this country, remembered longtime chain leader Michael Mooslin, who worked under Butler for 17 years at Dennys. Butler was consistently trying to maximize customer convenience, realizing that people were moving around faster, and that often both mother and father were too busy to cook three square meals a day. The trend is fast food and shorter menus, with emphasis more and more along the hamburger line, he told a reporter that year. Right now, we're trying out a mushroom burger.

Butler also utilized America's expanding highway system to his advantage. New restaurants were often built off major freeways, and they were designed to welcome all travelers - be they driving cross country or home from work.

Construction of new Denny's continued at breakneck speed. Even at this rate we'll never catch up to the market, Butler said at an industry conference. Just to keep up, we'd have to add a unit for every 50,000 increase in population. We haven't begun to fully tap the Western market, so for the present we have no plans to go nationwide.

But at plush company headquarters in La Mirada, trouble was brewing. By the late 60s, there were over 500 Denny's in twelve states, including Mexico. But Butler was not content to just be the patriarch of a powerful chain of restaurants. In classic American fashion, his eyes were getting too big for his stomach.

In 1968, Denny's bought another SoCal staple, Winchell's Donut House. Butler also began to push for a merger with Marie Callender's Pies Inc., another homegrown SoCal business. When the Callender family demurred, the company's lawyers alleged that Butler simply sent a mole into the family's bakery to steal the secrets of their success. According to a lawsuit filed by the company:

Woven through the Superior Court suit, filed in Orange County, are allegations of espionage involving such things as dough mixes, egg glazes, pie crusts and oven temperatures and the alleged lur

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