Final Nail: Denny’s to Shut Down 150 Underperforming Restaurants and Weighs Major Changes
According to The Sun, Denny’s executives have announced plans to close 150 restaurants as part of a strategic response to financial challenges and underperforming locations.
Planned Closures and Timeline
The decision comes as the company identifies which establishments to shut down, with around 75 locations expected to close by the end of 2024, and the remaining closures scheduled for 2025. This move reflects the chain’s efforts to navigate recent financial headwinds, including a dip in sales and rising restaurant inflation.
Reduced Operating Hours and Menu Changes
In addition to the closures, Denny’s will also be altering its operating hours. Some locations will no longer operate 24 hours a day, a change that has sparked nostalgia among fans who enjoyed late-night visits after concerts. Executives stated that it no longer made sense to keep restaurants open during hours of low traffic.
Furthermore, the chain is reducing its menu offerings, cutting the number of items from 97 to 46. Steve Dunn, the executive vice president of Denny’s, mentioned that the closures mainly involve older restaurants that are not viable for refurbishment.
Impact on Fans and Customers
This decision to close approximately 10% of Denny’s total locations in the U.S. has left many diners disheartened. One fan expressed their sadness, stating, “Denny’s holds a special place in my heart from my college days. Their late-night hours made it the go-to spot for post-concert gatherings and midnight cravings.” Another customer noted the restaurant’s value as a rare dining option at 3:00 a.m., particularly enjoying the Grand Slam breakfast.
The chain has also developed a dedicated international fanbase, with comments from diners lamenting the closures while expressing their love for Denny’s.
Recent Trends in Denny’s Closures
Earlier this year, The U.S. Sun reported that Denny’s had already closed about 15 locations, following the closure of over 50 restaurants the previous year. While many of these closures were due to financial underperformance, other factors, such as crime, have also played a role. For instance, the franchise owner of Denny’s last remaining San Francisco location cited the cost of doing business, including vandalism and theft, as significant challenges.
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Looking Ahead
Despite these setbacks, Denny’s leadership remains optimistic about the future. Kelli Valade, the CEO of Denny’s, revealed plans to re-launch a budget-friendly value menu that will allow diners to enjoy their favorite meals for less than $10.
Broader Industry Challenges
Denny’s isn’t the only chain facing closures. Shari’s Cafe and Pies has exited Oregon after shutting down more than a dozen locations due to financial difficulties, including unpaid tax bills and eviction notices. Additionally, a Buca di Beppo restaurant in Indianapolis recently closed after over 20 years of operation, with a note left on the door thanking customers for their loyalty.
The trend extends beyond restaurants; major retailers like 7-Eleven are also in the process of closing hundreds of locations, while liquidation sales are ongoing at Stop and Shop and Winn-Dixie stores that are shutting down.
