Denny’s announces closure of more than 150 restaurants; this is the reason

According to Denny's executives, the stores that will close have an average of almost 30 years of operation
Denny's announces closure of more than 150 restaurants; this is the reason
Photo: Denny’s

Bad news for Denny’s food fans, as the restaurant chain announced it will be closing more locations across the United States. Here’s a breakdown of which ones and why the company’s executives are making this decision.

Why will restaurants close?

Stephen Dunn, Executive Vice President and Chief Global Development Officer of Denny’s, explained that several of these closures are related to lease contracts that are about to expire or with outdated buildings. According to him, the locations the company plans to close are often too old to renovate or simply not profitable.

The stores that will close have been in operation for an average of nearly 30 years. Dunn mentioned that accelerating the closure of underperforming restaurants will improve the cash flow for franchisees, giving them the opportunity to reinvest in initiatives that drive traffic, such as the remodeling program.

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How many restaurants will close?

At the end of last year, the restaurant chain announced plans to close 150 underperforming stores by the end of 2025. The closures began that same year, with 88 locations; however, it seems that the final number of closures will exceed the original plan.

According to Robert Verostek, Denny’s Chief Financial Officer, up to 90 locations will close in 2025, which, combined with the 88 that ceased operations in 2024, brings the total number of closures to 178 restaurants over the coming months.

Which restaurants will close?

So far, the company has not released a list of the restaurants it will close throughout the year. The chain mentioned that it doesn’t typically provide advance notice of closures, so it will be revealed gradually which locations will stop operating.

How many Denny’s restaurants are there in the United States?

According to their website, the company currently operates 1,323 restaurants in the United States, with California, Texas, and Florida being the states with the highest number of locations, with 363, 204, and 124, respectively.

Who owns Denny’s?

Advantica owns and operates the Denny’s, Carrows, Coco’s, and El Pollo Loco restaurant brands.

Why is Denny’s popular?

The chain offers an extensive menu of breakfast, lunch, dinner, and late-night options, available 24/7, making it a favorite among many Americans. Additionally, with their On Demand service, customers can enjoy their favorite dishes anywhere.

What is Denny’s Rewards?

It’s the company’s loyalty program, allowing you to earn points and redeem them for offers and discounts on various menu items. By joining, you will receive the following benefits:

  • Join the club and get 20% off your next visit.
  • Celebrate with a birthday gift.
  • Receive the latest news and exclusive offers directly to your email.

Additionally, kids eat free with the purchase of an adult entrée priced at $6 or more, and AARP members receive a 15% discount on their bill.

These offers do not include alcoholic beverages, Everyday Value Slam, Super Slam, promotional items, gift cards, or orders placed online. They are also not combinable or stackable with Original Grand Slam promotions, $2 $4 $6 $8 menu items, or other offers and promotions.

Where was the original Denny’s?

The first restaurant in the chain was founded in 1953 in Lakewood, California, under the name Danny’s Donuts.

Why did Denny’s change its name?

In 1959, the company changed its name to Denny’s to distinguish its restaurants from the popular chain Coffee Dan’s.

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