In October 2024, Denny's announced its plan to close 150 restaurants by the end of 2025. Approximately 50 locations are set to close by the end of 2024, with another 100 following in 2025. This decision targets the closure of underperforming locations within this iconic "Boomer" chain as part of a strategy to enhance overall profitability. Denny's corporate headquarters is located in Spartanburg, South Carolina.
Denny’s has revealed plans to close locations that are underperforming, whether due to outdated facilities or insufficient profitability. This decision is aimed at streamlining operations, enabling franchise owners to concentrate on enhancing other restaurants through remodeling initiatives.
Several restaurants, including some that have operated for nearly thirty years, are scheduled to close. CFO Robert Verostek explained that this decision is driven by evolving customer trends and the aging infrastructure of the buildings. He emphasized that these closures are essential to support the company’s long-term growth strategy.
Denny's is considering a change in its policy that would no longer mandate its franchise locations to remain open 24/7. This potential shift comes as many restaurants have not resumed full-time operations following the pandemic, due to changes in customer dining habits over recent years.
Denny’s has revealed its strategy to streamline its menu by reducing the number of items from 97 to 46. This move aims to enhance efficiency and focus on delivering the most beloved dishes to their customers.
By the end of 2025, a total of 150 restaurants are expected to close. Approximately 50 of these closures took place by the end of 2024, with more planned for this year. This figure exceeds earlier predictions.
Denny's is aiming to open between 20 and 40 new locations to offset recent closures. Approximately half of these new establishments will be traditional Denny's restaurants. The remaining locations will be Keke's Breakfast Cafes, a chain that Denny's acquired in 2022.
Denny’s operates a total of 1,358 restaurants throughout the United States, with the majority located in California, Texas, Florida, and Arizona. Unfortunately, these states are expected to see the highest number of closures soon.
Denny's stock has faced significant challenges over the past year, with its value dropping by half. On March 3, 2025, the shares reached their lowest point in more than four years, declining to $4.82. This downturn coincided with the company reporting a slight decrease in revenue for 2024, further contributing to its financial difficulties.
Many fans of Denny's are expressing concern over the recent closures of some restaurants, fearing that beloved menu items, such as Moons Over My Hammy, might become unavailable. Additionally, some customers have noted issues like low employee wages and poor service, suggesting these could be contributing factors to the shutdowns.
Denny’s is the latest company to announce store closures this year, joining the trend of other major businesses making similar decisions. So far, nearly 100 Red Lobster locations, several Pizza Huts, 1,200 Walgreens, and 300 CVS stores are scheduled to close as part of widespread downsizing efforts across various industries.
Denny’s has not yet disclosed which locations will be closing or which states will be most affected. This uncertainty has left many customers wondering about the future of their local diners.
Denny's is dedicated to supporting its franchisees by investing in remodeling efforts and strategies designed to attract more customers, despite the closure of some locations. The company is confident in its ability to grow and succeed over the long term.
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