Denny’s plans to close 150 restaurants over the next year and is considering a significant change to its 24/7 operating hours.
In a recent press release, Denny’s, the 71-year-old franchise, announced that it plans to close fifty locations by the end of 2024, and the remaining 100 will stop trade in 2025. This is a closure of ten percent of its restaurants, leaving 1,375 locations once the closures are completed. A specific list of the closing restaurants was not immediately announced.
Denny’s aim is to hone in on “underperforming restaurants”, according to Steve Dunn, Denny’s Executive Vice President and Chief Global Development Officer.
The affected locations are unable to be remodelled, or in areas which are now unprofitable. “Some of these restaurants can be very old,” Dunn said during an investor meeting. “You think of a 70-year-old plus brand. We have a lot of restaurants that have been out there for a very long time.”
Restaurant inflation is making it harder for customers to afford eating out, Denny’s concluded. According to Denny’s, family dining — their prime category — has seen the largest decrease in customer traffic since 2020.
On Tuesday, Denny’s reported its fifth straight quarter of decline in same-store sales. Shares in Denny’s Corp. have fallen almost 18% since the release of these figures.
By CEO NA Editorial Staff
