Denny’s to close 150 restaurants, slash hours, menu items amid inflation woes

Denny’s is making changes to its operations.

The popular chain, known for its affordable and hearty meals, will be closing 150 underperforming locations over the next year. In addition to the closures, Denny’s will reduce its hours of operation and streamline its extensive menu as customers tighten their budgets, the company announced on Tuesday.

With approximately 1,500 locations nationwide, Denny’s plans to shut down 50 restaurants by the end of this year and the remaining 100 by 2025, according to company executives.

Steve Dunn, Denny’s executive vice president, stated that the closures are focused on “underperforming restaurants” that are either too outdated to renovate or situated in unprofitable areas.

These underperforming locations have negatively impacted the company’s financial performance, Dunn added.

A detailed list of the closing restaurants has not been disclosed yet.

On Tuesday, Denny’s stock dropped 17.6%, closing at $5.47.

The chain plans to reduce its menu from 97 items to 46 as more adults opt for items from the kids menu to save money, the company based in Spartanburg, S.C., revealed.

Earlier this year, a customer’s post on Reddit went viral, showcasing an $18 Lumber Jack Slam – a popular breakfast dish consisting of ham, bacon, sausage, eggs, hash browns, and toast – with a title that read “dumblfation.”

To adjust to changing customer behavior and market conditions, Denny’s will be easing one of its signature features – its 24/7 operating hours – acknowledging that many franchisees can no longer sustain round-the-clock operations.

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