Denny’s Announces Closure Of 150 Lowest-Performing Restaura...
Denny’s Announces Closure Of 150 Lowest-Performing Restaurants
Source: Justin Sullivan / Getty
Denny’s Announced Closure Of 150 Lowest-Performing Restaurants
In an effort to rejuvenate its brand and reverse a trend of declining sales, Denny’s has announced the closure of 150 of its lowest-performing restaurants.
This strategic move aims to streamline operations and focus resources on more profitable locations.
As the dining landscape continues to evolve, Denny’s is seeking ways to adapt and thrive amid changing consumer preferences and market dynamics.
About half of the closures will happen this year and the rest in 2025, the company said during a meeting with investors Tuesday.
The locations weren’t revealed, but 150 restaurants represent around 10% of Denny’s total.
In recent years, Denny’s has faced challenges similar to those plaguing the broader casual dining sector, including increased competition from fast-casual and delivery-oriented food services.
By closing these locations, Denny’s aims to cut losses and reinvest in initiatives that could drive growth, such as menu innovation and enhancing the customer dining experience.
Stephen Dunn, Denny’s executive vice president and chief global development officer, said in some cases, the restaurants are also no longer in good locations.
“Some of these restaurants can be very old,” Dunn said during the investor meeting. “You think of a 70-year-old plus brand. We have a lot of restaurants that have been out there for a very long time.”
Looking ahead, Denny’s plans to leverage its resources to explore new growth avenues, such as expanding delivery services and developing new menu offerings that cater to tastes.
The brand is also likely to invest in digital innovations, such as app-based ordering and loyalty programs, to attract a tech-savvy customer base.
RELATED | Buca Di Beppo Files For Bankruptcy
RELATED | Yelloh, Formerly Known As Schwan’s, To Cease Operations In November
For employees, the closures mean job losses, which is a significant downside to the restructuring.
However, Denny’s may offer opportunities for relocation within the company or provide support for those affected by the closures.
Denny’s leadership has emphasized that these closures are a proactive step towards securing the brand’s future.
As the company implements its strategic plan, stakeholders will be watching to see how these changes influence Denny’s trajectory in the coming years.
