Denny’s expects to close 150 locations by end of 2025
Denny’s said that it expects to close 150 of its lowest-performing restaurants in an effort to turn around the brand’s flagging sales.
According to The Associated Press, 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 the restaurants represent around 10% of Denny’s total.
"Some of these restaurants can be very old," Stephen Dunn, Denny’s executive vice president and chief global development officer, 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."
A sign is posted in front of a Denny's restaurant on February 13, 2023 in Emeryville, California. (Credit: Justin Sullivan/Getty Images)
Other restaurants saw traffic shifts during the COVID-19 pandemic that have yet to reverse, he added.
On Tuesday, Denny's reported its fifth straight quarter of year-over-year declines in same-store sales, which are sales at locations open at least a year.
Restaurant inflation is currently outpacing grocery price inflation, which makes it harder for some customers to justify eating out, Denny's said.
Cost of Denny's meal receives shocked reactions
In August, a Reddit user's post about the cost of a Lumberjack Slam at Denny's went viral and received shocked reactions from others at how quickly the prices at the breakfast chain have increased.
User "Front_Usual_2884" posted a picture of a menu on the "r/Inflation" subreddit July 3, showing the Lumberjack Slam at one Denny's location costs $17.99.
RELATED: Diners shocked at higher price for popular Denny’s platter
The Lumberjack Slam comes with buttermilk pancakes, grilled ham, bacon strips, all-pork sausage links, two fresh eggs made to order, hash browns and white toast. The menu noted that for an additional $3.09, a diner can upgrade the pancakes on the Lumberjack Slam to a choice of different premium pancake varieties.
Denny's prices vary by region and restaurant. On the Denny's website, the Lumberjack Slam is listed as having a starting price of $16.29. The Reddit user did not note the location of the Denny's where he snapped the picture of the menu.
Shares in Denny's Corp., which is based in Spartanburg, South Carolina, tumbled almost 18% on Tuesday.