Denny's Closing 150 Locations by 2025

Denny's, the well-known American diner chain, has announced plans to close 150 underperforming locations by the end of 2025, with 50 of these closures occurring by the end of 2024. This decision comes as the company faces declining sales and rising operational costs. The closures represent about 10% of Denny's total U.S. locations, which currently number approximately 1,500. The company has not specified which locations will be affected, but indicated that the targeted restaurants are outdated or situated in less favorable areas. This move is part of a broader strategy to optimize the brand's portfolio and focus on more profitable locations.

In addition to the closures, Denny's is considering reducing its menu offerings and adjusting operating hours at certain locations. These changes aim to streamline operations and better align with current consumer preferences, as many locations have not returned to 24/7 service since the pandemic. The company is also exploring ways to modernize its restaurant designs to enhance customer experience.

This announcement follows a trend in the casual dining industry, where chains like TGI Friday's and Wendy's are also closing underperforming locations to adapt to changing market conditions. Denny's reported a 0.1% decrease in same-store sales for franchised restaurants and a 0.4% decrease for company-owned restaurants in its third-quarter earnings report. The company attributes these declines to inflationary pressures and shifts in consumer dining habits.

Despite these challenges, Denny's remains optimistic about its future. The company is focusing on enhancing its value menu and delivery options to attract customers. By closing underperforming locations and investing in more profitable ones, Denny's aims to strengthen its financial position and better serve its customers in the evolving dining landscape.