Denny’s to Close 150 Locations by the End of 2025
Company Seeks to Revamp Brand Image and Sales
Denny’s, the beloved diner chain, has announced that it will be closing 150 of its lowest-performing restaurants by the end of 2025. The decision aims to revitalize the brand and improve its flagging sales.
About 10% of Total Locations Impacted
The company plans to close approximately 10% of its total number of locations, with around half of the closures taking place this year. The specific locations affected have not been disclosed, but the decision is expected to have a significant impact on the company’s operations and profits.
Reasons for Closures
According to Stephen Dunn, Denny’s executive vice president and chief global development officer, some of the reasons for the closures include:
- Restaurants in old and poor locations
- Traffic shifts during the pandemic that have yet to reverse
- Restaurant inflation outpacing grocery price inflation, making it harder for customers to justify eating out
<h4parsers For Change
Denny’s is facing significant challenges in the competitive restaurant industry. The company reported its fifth straight quarter of year-over-year declines in same-store sales, which are sales at locations open at least a year.
Positive Developments
However, the company points to some positive developments, including:
- A value menu that lifted sales in its most recent quarter
- Growing sales of its delivery-only brands like Banda Burrito
Ambitious Plan to Revamp the Brand
Denny’s is implementing an ambitious plan to revamp its brand and improve its sales. The company is exploring new marketing strategies, menu options, and restaurant designs to attract a new generation of customers.
Conclusion
The decision to close 150 locations is a significant step towards Denny’s efforts to turn around its struggling sales. While it may be a challenging and complex process, the company is committed to revitalizing its brand and emerging stronger in the years to come.
FAQs
- How many locations will Denny’s be closing?
- Approximately 150, which is around 10% of its total number of locations.
- How many of the closures will take place in 2023?
- Around half of the total closures, or approximately 75 locations.
- Why is Denny’s closing these locations?
- The company is closing locations that are no longer in good locations, have suffered from traffic shifts during the pandemic, or are struggling with increasing restaurant inflation.
