Denny’s Will Close 150 Locations Before the End of 2025

Family-focused restaurant chain Denny’s is closing 150 locations, with 50 being shuttered by the end of this year and the remaining 100 before 2025 is over. During an investors call on Tuesday, company leaders announced the closings, citing age and cash flow issues.

The Denny’s locations set to close are either too outdated to remodel or otherwise unprofitable. The restaurant chain has yet to disclose which stores will be affected.

“Some of these restaurants can be very old. So, when you think of a 70-year-old plus brand, you have a lot of restaurants that have been out there for a very long time,” said Denny’s Chief Global Development Officer Stephen Dunn, per USA Today.

The 150 closings represent roughly 10% of all Denny’s restaurant locations. Once the stores are shuttered, the chain will have about 1,375 locations left, with the majority in the U.S.

More Changes for Denny’s

Most Denny’s restaurants, which are independently owned, are open 24/7. However, about 25% of locations gave up the always-open hours when the pandemic hit. As such, the company has stopped forcing franchisees to maintain those hours. According to Dunn, the round-the-clock hours don’t make much sense at Denny’s locations with very few customers during the night.

Denny’s executives noted that inflation has significantly affected restaurants overall, even more so than grocery stores. With rising prices, consumers are eating out less, and when they do, fast-food chains are the go-to choice. In the family dining category, customer foot traffic has dropped over the past four years.

In addition to the 150 Denny’s closings, the menu is getting trimmed. While there are 97 menu items to choose from now, 51 options will subsequently be removed.

Another major restaurant chain is also in the process of closing locations: Red Lobster. The seafood chain announced earlier this year that it would shutter about 129 stores across the U.S., ultimately leaving around 500 open.