Denny’s is testing a new campaign targeting the college crowd to promote its late-night menu and service.

The casual dining chain is running a new promotion in two markets, Austin, TX, and Syracuse, NY, to motivate college students to visit its restaurants between 10 p.m. and 5 a.m. The pilot program sets the stage for a larger rollout to other markets this fall.

“One of our missions for 2007 is to treat each day-part as a specific business,” said Michael Polydoroff, director of sales promotions and licensing for Denny’s. “Late-night is one. We wanted to create a marketing and promotions program that targets what we know are our predominate late-night visitors—college kids.”

Denny’s is luring 18- to 24-year-olds with a “Pick 3” appetizer promotion for $9.99 on weekdays. And on Saturday nights, visitors who show a valid student ID will receive a 20% discount off their bill.

In addition, the company is sending out 10,000 direct mail pieces to each market promoting its late-night menu fare and an exclusive online sweepstakes. Students can enter for a chance to win a $1,500 gift card for Dell and a $50 Denny’s gift card.

The company will pick one winner from each market.

Denny’s is also tapping text savvy students by printing a promotional code in the direct mail pieces and in college newspaper ads. Consumers text the word “DENNYS” to the code to receive a mobile coupon for a free Dr Pepper beverage. Customers show their cell phones with the offer at the register to redeem the coupon.

The campaign runs through May 6.

“Our approach was to take many different traditional and non-traditional marketing activities and try them all,” Polydoroff said.

Denny’s selected Austin and Syracuse as test markets because of the large college crowd that nearby universities draw. The company also operates a total of 15 restaurants in both markets.

To create more of a student-friendly environment, Denny’s servers will dress in T-shirts and jeans and restaurants will play current pop music.

Beyond direct mail, the company is promoting the offers via an FSI and print ads running in college newspapers, and banner ads on Facebook.com. The FSI in Austin will feature two coupon offers during the four-week promotion.

“We are testing different things in different markets to see what works,” Polydoroff said.

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