Denny’s has abruptly announced the closure of 150 locations in an effort to offset slow sales.
The chain announced that there will be 50 store closings this year and that the remaining 100 locations will close in 2025.
The news comes after 15 of the chain’s locations closed this summer alone and 70 total have closed in the past two years.
Inflation was previously blamed as a major factor in the recent closures.
Denny’s has closed more than 70 of its restaurants in the last two years
Steve Dunn, executive vice president and chief global development officer for Denny’s, has now said that the affected planned locations are either too old to be remodeled or are in areas that are no longer profitable.
On Tuesday, Denny’s reported its fifth consecutive quarter of sales declines at locations that have been open at least a year.
Since the pandemic, 24-hour dining has also not returned to 24-hour operations in about a quarter of locations.
Denny’s has now officially reduced its hours after Dunn said it “didn’t make sense” as foot traffic and changes in consumer behaviors continue to show the effects of the pandemic.
San Francisco has lost its last remaining Denny’s location
Recently, Denny’s closed a location in San Francisco that had been in business for 25 years due to rising crime rates, and another in Pennsylvania after 45 years of service.
The chain also cut its menu options in half, from 97 to 46, after noticing that adults looking for cheaper options began ordering from the children’s menu.
Denny’s (DENN) stock fell 17% on Tuesday after earnings missed analyst expectations. The stock is down 50% for the year.
Recently, Denny’s closed a location in San Francisco due to rising crime rates after operating for 25 years, and another location in Pennsylvania closed after 45 years of service.
Many dine-in restaurants have felt the effects of changing consumer habits as money becomes tighter and habits change post-pandemic.
Stores like Denny’s have begun launching value-deal options to attract customers, such as Applebee’s ‘Whole Lotta Burger’ with fries for $9.99 and Chili’s $10.99 burger, which is larger and cheaper than the Big Mac.