Denny’s revealed in October 2024 that it will shut down 150 restaurants by late 2025. (About 50 closed by the end of 2024, with another 100 or so closing in 2025.) The move is aimed at closing underperforming locations of this classic “Boomer” chain to boost overall profits. The company is headquartered in Spartanburg, South Carolina.
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Denny’s has announced plans to shut down underperforming locations that are either outdated or not making enough profit. The decision is part of an effort to simplify operations and give franchise owners the opportunity to focus on upgrading other restaurants through remodeling programs.
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Several restaurants, some of which have been in business for nearly three decades, are set to close. According to CFO Robert Verostek, the decision is due to changing customer trends and aging buildings. He stated that these closures are necessary to support the company’s long-term growth plans.
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Denny’s is thinking about no longer requiring its franchise locations to stay open 24/7. Many restaurants have not gone back to full-time service since the pandemic, as customer dining habits have shifted in recent years.
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Denny’s has announced plans to simplify its menu by cutting down the number of items from 97 to 46. The decision is part of an effort to boost efficiency and concentrate on serving the most popular dishes customers love.
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By the end of 2025, a total of 150 restaurants are set to shut down. Around 50 of these closures happened by the end of 2024, with an additional batch planned for this year. This number surpasses earlier predictions.
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Denny’s is planning to open 20 to 40 new locations to make up for recent closures. About half of these will be traditional Denny’s restaurants, while the rest will be Keke’s Breakfast Cafes, a chain the company purchased in 2022.
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Denny’s currently operates 1,358 restaurants across the United States, with most locations found in California, Texas, Florida, and Arizona. However, these states are likely to experience the highest number of closures in the near future.
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Denny’s stock has struggled over the past year, losing half its value. On March 3, 2025, shares fell to $4.82, marking their lowest point in over four years. The company also reported a small drop in revenue for 2024, adding to its financial challenges.
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Many Denny’s fans are upset about the recent restaurant closures, worried that popular menu items like Moons Over My Hammy could disappear. Some customers have also pointed to issues like low employee wages and poor service as possible reasons for the shutdowns.
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Denny’s is the latest company to announce store closures this year, joining other major businesses making similar moves. So far, nearly 100 Red Lobster locations, multiple Pizza Huts, 1,200 Walgreens, and 300 CVS stores are set to shut their doors as part of widespread downsizing across various industries.
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Denny’s has yet to announce which locations will be closing or which states will be most impacted. This has left many customers unsure about what will happen to their neighborhood diners.
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Denny’s is committed to supporting its franchisees by investing in remodeling efforts and strategies to attract more customers, even as some locations have closed. The company remains confident in its ability to grow and succeed over the long term.
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