71-year-old breakfast chain to close 150 restaurants & slim down menu due to ‘underperformance’

Part of this restaurant chain’s “comeback plan” is closing 150 restaurants throughout the end of the year and in 2025.

Denny’s, which first opened 71 years ago and is known for their affordable breakfast platters, is shuttering these locations due to “underperformance,” according to the company. Due to significant loss in traffic, they’ve experienced a 20% decrease in sales. The company believes that by reducing the number of locations, this will help reach Denny’s average annual unit volume to $2.2 million. 

CEO Kelli Valade told Restaurant Business that it’s not just Denny’s that suffered a loss of traffic. “Everyone has,” she said. She cited research that showed all “family dining” concepts are down about 20% right now, and how similar chains have had to shut down stores and restaurants. 

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Last year, Denny’s franchisee Denn-Ohio filed for bankruptcy, who operated 10 Denny’s restaurants in Ohio, Michigan, and Kentucky. They reported they were hit by economic challenges related to COVID, including labor, food, and delivery costs. 

Recently, Denny’s has cut back on its 24/7 business model, and has also downsized its menu from 97 to 46 items. But that doesn’t necessarily mean the quality has downgraded – Valade stated they recently spent $8 million to improve items such as their bacon. A couple of months ago, the Ashland, OH Denny’s abruptly closed with no explanation, and another location in Ontario, OH closed this year as well. 

As of now, Denny’s has not reported which locations are to close throughout the nation, but it will be ⅕ of their most underperforming restaurants. There are currently 1,358 Denny’s restaurants in the U.S., and 28 of them are in Ohio, with a handful in the Central Ohio area.

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