Denny’s has closed 15 more restaurants in the United States as the chain struggles with rising costs and falling sales.
It is the latest restaurant chain to be hit by a drop in customer numbers, with customers eating out less after two years of steep price rises.
The closures of the famous chain, nicknamed America’s restaurant, add to the 57 from last year and the 60 in 2022.
One of those that closed recently, on June 19, was the last remaining Denny’s in Langthorne in Bucks County, Pennsylvania.
Another popular Denny’s store closed in Ashland, Ohio last month.
Denny’s has already closed 57 branches this year
Denny’s comparable-store sales fell 0.6 percent compared with the same period last year. Since it has raised prices, that means it has suffered a sharp drop in customer numbers.
Robert Verostek, executive vice president and chief financial officer of Denny’s, blamed inflation as a major factor in the closure when he spoke to investors in February.
He noted that the break-even point for a restaurant to remain open had risen from $1 million to $1.2 million due to rising food costs and wages.
In an attempt to attract customers, Denny’s is joining other fast-casual food stores in the value wars.
Restaurants and fast-food chains are increasingly looking to offer value options to attract inflation-weary customers who have cut back on eating out.
Denny’s will officially relaunch its menu with $2, $4, $6 and $8 prices later this summer.
Denny’s Chief Executive Kelli Valade told investors that the return of the chain’s classic meal offerings will attract loyal customers.
“This was a value platform unique to Denny’s, launched years ago with amazing results, and it’s a unique asset that only we have,” Valade said on the call.
The struggling chain is preparing to close another 15 underperforming stores
“We are thrilled to bring back this consumer-friendly traffic generation platform based on extensive testing and re-engineering,” he added.
Applebee’s has also launched value deals despite also facing massive closures.
In an attempt to appeal to Americans fed up with rising fast food prices, Applebee’s has launched the Whole Lotta Burger with fries for $9.99.
The decision to compete with fast-food chains echoes that of Chilli’s, which also launched a $10.99 burger. which is bigger and cheaper than the Big Mac
A Big Mac meal can cost nearly $15, while Shake Shake, Five Guys and Wendy’s all have burgers that cost $10 on their own.
