Denny’s Plans To Close More Restaurants In This Year

Denny’s is set to shutter additional locations across the U.S. this year, exceeding previous expectations, as economic challenges and evolving consumer trends impact the restaurant industry.

During this week’s earnings call, the breakfast chain revealed the expanded shutdown plans.

Here’s what you should know:

In 2025, Denny’s restaurants will close.

The backstory: Denny’s declared in October that it will eliminate 150 of its underperforming restaurants by 2025. In 2024, the corporation verified 88 closures, and more are expected this year.

What we know: Robert Verostek, the chief financial officer of Denny’s, said during an earnings call on February 12 that the business anticipates closing “between 70 to 90 restaurants, which includes some closures related to lease expirations.”

What is unknown to us:

Despite FOX Television Stations’ inquiries, Denny’s has not revealed which individual locations will be closing.

Based on the figures:

Together with the 88 locations that were closed last year, the chain’s higher estimate of 90 closures in 2025 would result in an almost 30-restaurant increase over earlier estimates. The Denny’s website states that the chain has more than 1,500 locations around the country.

What they’re saying:

Verostek told investors, “These closures were open on average for nearly 30 years and had an average unit volume of slightly under $1.1 million.” “In any mature brand, when restaurants have been open that long, it is natural that trade areas can shift over time.”

He went on to say: “As trends stabilize and our second half sales initiatives are implemented, including remodels and a new loyalty program, we anticipate comps will rise throughout the year and place us more firmly within the range.”

What’s next:

In spite of the closures, Denny’s intends to open 25–40 new locations, equally distributing them between its own brand and Keke’s Breakfast Café, which it purchased in 2022.