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Denny’s to close 150 restaurants

Sunrise over a vintage Denny's restaurant in Ridgecrest, California, with a neon sign and cars parked in the lot.

Denny’s, known for being open 24/7, announced it will close 150 restaurants over the next year.

The closures will affect over 10% of the company’s 1,375 U.S. locations with 50 closing by the end of 2024 and the remaining 100 closing next year, CNN reported.

Denny’s did not say which locations would close but did say that they were ones that were underperforming. They are either too old to be remodeled or are not profitable, USA Today reported.

“Some of these restaurants can be very old. So when you think of a 70-year-old plus brand, you have a lot of restaurants that have been out there for a very long time,” Denny’s Executive Vice President and Chief Global Development Officer Stephen Dunn said, according to USA Today.

Other restaurants may be acquired by “stronger operators,” Fox Business reported.

While most of the news focused on restaurant closures, there will be some new locations popping up. Between 30 and 40 restaurants will be opened with just under half being under the company’s Keke’s Breakfast Cafe brand.

Another big change: Denny’s will not require locations to be open 24/7. Many restaurants did not go back to the always-open format after the end of the COVID-19 pandemic, CNN reported.

The change can partially be attributed to customers’ habits that have hit the entire industry with people eating earlier and drinking less alcohol in the late-night hours. Higher staff and food costs are also causing many restaurants to cut hours of operation.

The menu is also being cut from 97 items to 46 items.


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