Denny's is one of the most well-known restaurant chains in the United States, famous for its 24-hour service and varied menu. With more than 2,500 locations worldwide, it is a benchmark in the fast food and family dining sector. However, the chain is going through difficult times that have led to a significant restructuring of its operations.
Recently, Denny's announced the closure of 150 of its restaurants in the United States. This move has surprised many, as the company has not revealed the exact list of affected branches. Despite the closures, Denny's has already announced that it plans new openings in the coming months.
What Reasons Are Behind Denny's Massive Closure of Locations
The closures of these restaurants are part of a strategy to reduce costs and optimize the operation of the chain. According to the company, several of the affected restaurants are over 30 years old and have lost profitability in recent years.
Additionally, many of these locations have expired leases that are not profitable for the company. Therefore, Denny's has decided to close these branches and focus on other markets with more potential.
The restructuring also responds to the current economic situation in the United States. The so-called "retail apocalypse" is affecting many large chains, and Denny's is no exception. Economic difficulties and changes in consumer habits have forced the company to make difficult decisions, such as these massive closures.
Denny's Has Remodeling Plans for This Year
Despite the closures, Denny's is not giving up on its potential growth; the company plans to open between 25 and 40 new restaurants in 2025, according to RPP. Of these, half will be new openings under the Denny's brand, while the other half will correspond to the Keke's Breakfast Cafe chain, which Denny's acquired in 2022. This expansion aims to increase its presence in key markets and take advantage of the growth potential offered by certain locations.
Denny's is also focusing on renovating several of its existing locations; during 2024, some of the renovated restaurants experienced a 6.5% increase in customer traffic. However, only 23 branches were remodeled last year, reflecting that there is much work to be done in this area. The chain trusts that the renovation of its establishments will be crucial to improving the customer experience and ultimately increasing its revenue.
Denny's has made difficult decisions, such as closing several locations, in response to the current economic situation. However, the company remains firm in its goal to grow and adapt to new market challenges. Its expansion and remodeling plans are a clear reflection of its commitment to remain competitive and continue being one of the most relevant restaurant chains in the United States.