Denny’s to Close 150 Locations: What We Know

Denny’s plans to shutter 150 underperforming restaurants by the end of 2025 as part of a larger strategy to counter declining sales. The move affects approximately 10% of its total locations.

🍽️ Why It Matters: Denny’s closures signal broader challenges in the family dining sector, with inflation driving consumers toward more affordable fast-casual and fast-food options. The company’s effort to stay afloat could have an impact on local economies and loyal customers who frequent these longstanding locations.

📉 What’s Happening:

• Denny’s reported its fifth consecutive quarter of declining same-store sales.

• Half of the 150 closures will occur in 2024, with the rest closing in 2025.

🏠 Between the Lines: The closures target restaurants in poor locations or those hit hard by pandemic-induced traffic shifts, as many have not recovered to pre-2020 levels. Denny’s long history means some of its restaurants have simply aged out of prime real estate, exacerbating the problem.

• Restaurant inflation is outpacing grocery costs, making it harder for families to justify dining out.

• The fast-casual sector, which includes chains like Chipotle, is pulling away Denny’s customers.

📦 Catch Up Quick: Denny’s, a 70-year-old brand based in Spartanburg, SC, has seen a sharp decline in stock, falling 18% on Tuesday.

💡 The Big Picture: This closure strategy is part of a larger shift in the restaurant industry, where inflation and evolving customer habits have hit family dining chains particularly hard.