According to The Sun, Denny’s executives have announced plans to close 150 restaurants as part of a strategy to address underperforming locations. The closures will be implemented by the end of 2025, with approximately 75 restaurants shutting down by the end of this year and the remaining closures occurring in 2025.
Reasons for Closure
The decision comes in response to the company’s ongoing financial difficulties, including a decline in sales and the impact of restaurant inflation, which has posed challenges for diners. In addition to closing locations, Denny’s is also modifying its operational hours, with some restaurants no longer open 24 hours a day. Executives explained that it was impractical to keep the restaurants open during low-traffic hours.
Menu Changes and Restaurant Aging
In an effort to streamline operations, the number of menu items will be reduced from 97 to 46. Steve Dunn, Denny’s executive vice president, mentioned that the closures will primarily involve older establishments that are too outdated to refurbish. This decision represents about 10% of Denny’s total restaurant footprint in the United States.
Customer Reactions
The news of the impending closures has left many diners disheartened. Fans of the chain reminisced about their experiences, with one saying, “Denny’s holds a special place in my heart from my college days.” Another customer noted the limited options available during late-night hours, emphasizing the Grand Slam as a popular choice.
International fans have also expressed their disappointment. “Oh, what a shame,” one lamented, stating their love for Denny’s during visits to the U.S.
Recent Trends in Denny’s Closures
Earlier this year, reports indicated that Denny’s had already closed around 15 locations, following the closure of more than 50 restaurants the previous year. While many of these closures were financially motivated, some were influenced by external factors. For instance, the last Denny’s in San Francisco closed due to crime-related challenges, as cited by its franchise owner, Chris Haque.
Future Optimism
Despite the closures, Denny’s leadership remains optimistic about the future. CEO Kelli Valade announced plans to relaunch a budget-friendly value menu, allowing diners to enjoy favorite dishes for less than $10.
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Broader Industry Trends
Denny’s isn’t the only restaurant chain facing closures. Shari’s Cafe and Pies recently exited the state of Oregon after closing over a dozen locations amid financial struggles, including unpaid tax bills and eviction notices. Additionally, a Buca di Beppo restaurant in Indianapolis closed after serving the city for over 20 years, leaving a note of thanks for customer loyalty.
The trend of closures extends beyond restaurants, with major retailers like 7-Eleven also shutting down hundreds of locations. Liquidation sales are underway at Stop and Shop and Winn-Dixie outlets as they close their doors.
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