SACRAMENTO, United States — Denny’s, the iconic American diner chain known for its round-the-clock service and extensive menu, announced Tuesday the closing of 150 restaurants by the end of 2025.
The closures will occur in two phases: about 50 locations will shut down by the end of 2024, with the remaining 100 closing in 2025. This move represents a reduction of approximately 10 percent of Denny’s total locations, leaving around 1,375 restaurants still in operation.
The company did not disclose which specific locations will be affected. Still, it indicated that underperforming restaurants, particularly those too old to be remodeled or in unprofitable areas, are being targeted for closure.
This decision reflected a broader trend in the U.S. restaurant industry, where shifting consumer preferences and economic pressures are reshaping the landscape.
Denny’s has been facing financial challenges, with its stock price dropping nearly 50 percent this year. The company’s latest earnings report revealed a decline in operating revenue to 111 million U.S. dollars from 114 million U.S. dollars in the previous year.
These financial strains are compounded by broader industry issues such as rising labor and food costs, making it difficult for family dining establishments like Denny’s to compete with less expensive fast-casual and fast-food options.
In response to these challenges, Denny’s also made significant changes to its operations. The chain was reported to reduce its menu from 97 items to 46 and to reconsider its once iconic 24/7 around-the-clock operating hours.
Since the pandemic, about a quarter of its restaurants have not returned to being open around the clock, prompting Denny’s to ease this requirement for franchisees.
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