Denny’s announced it will close 150 locations by 2025.
The diner-style restaurant chain said approximately 50 locations will close this year, and the remaining 100 will shut down in 2025.
Denny’s gets burned as business slows, set to shutter 150 underperforming diners https://t.co/1v18X5ZhZj pic.twitter.com/oze144aEFU
— New York Post (@nypost) October 22, 2024
Per Daily Mail:
The news comes after 15 of the chains locations closed this summer alone and 70 in total have closed in the last two years.
Previously, inflation was blamed as a significant factor for the recent closures.
Steve Dunn, Denny’s executive vice president and chief global development officer, has now said the affected planned locations are either too old to be remodeled or in areas that have become unprofitable.
Denny’s to close 150 locations by the end of 2025 amid flagging saleshttps://t.co/GNCpjmyB8w pic.twitter.com/jJBERhEAVw
— The Washington Times (@WashTimes) October 23, 2024
WILL YOU MISS IT? Denny’s says it’s closing 150 of its lowest-performing restaurants by the end of 2025. – https://t.co/Me7OEwwE7U#news12 #dennys #restaurants #consumer pic.twitter.com/9HvHDeDcdn
— News12LI (@News12LI) October 23, 2024
From the Associated Press:
Others saw traffic shifts during the pandemic that have yet to reverse, he said.
On Tuesday, Denny’s reported its fifth straight quarter of year-over-year declines in same-store sales, which are sales at locations open at least a year.
Restaurant inflation is outpacing grocery price inflation, which makes it harder for some customers to justify eating out, Denny’s said. And when they do eat out, they often head to fast-casual brands like Chipotle or fast-food chains. Denny’s said family dining — the category in which it competes — has lost the most customer traffic since 2020.
Still, Denny’s said it has bright spots, including a value menu that lifted sales in its most recent quarter and growing sales of its delivery-only brands like Banda Burrito.
Shares in Denny’s Corp., which is based in Spartanburg, South Carolina, tumbled almost 18% on Tuesday.