Denny’s closing 150 locations as one in 10 of its diners are ‘underperforming’
The American casual diner chain Denny’s is shuttering 150 restaurants across the US as one-tenth of its locations are ‘underperforming’.
Denny’s will close 50 locations by the end of this year, and the other 100 in 2025, the company announced in an earnings call on Tuesday.
The closures will amount to one-tenth of its restaurants across the country and will leave 1,375 still operating.
Those that are closing were ‘underperforming restaurants’, said Steve Dunn, Denny’s executive vice president and chief global development officer, according to CNN.
Besides not turning in a profit, some of the targeted locations are too old to be renovated, he said.
The chain did not immediately disclose a list of shuttering restaurants, or which states they are located in.
For the locations that are being spared, changes may be on the way. Denny’s is considering changing one of the features that made it popular in the first place – its 24/7 operating hours.
The chain once required all of its franchises to stay remain open around-the-clock, but roughly a quarter of the locations have not done so since the coronavirus pandemic. Denny’s may not require them to do so.
For some locations, it ‘didn’t make sense’ to stay open overnight when they were serving fewer customers, Dunn said.
Another reform at Denny’s is cutting down the menu options from 97 to 46.
Denny’s shares on Tuesday dropped 17%, and its stock is down 50% for 2024.
It is not the only restaurant chain struggling as customers continue to grapple with inflation.
In late September, one of the largest Pizza Hut franchises, EYM Pizza L.P., announced that it was selling 127 of its locations across five states following its bankruptcy.
Earlier this year, fast-casual restaurant chains Red Lobster and Olive Garden both announced closures amid financial challenges.
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