It’s going to be hard for Denny’s, the popular American diner company known for its classic breakfasts and 24 hours a day, seven days a week service, to stay open in 2025. Even though the company tried to change things and adapt to new customer habits, they now plan to close between 70 and 90 stores, which is more than they had planned. But why are these choices being made, and what does this mean for both customers and business owners? Let’s get into the specifics.
Denny’s Closures: How Many Locations Are Affected?
Denny’s first said in October 2024 that it would close 150 restaurants over the course of a year. Chief Financial Officer Robert Verostek gave an updated estimate during a recent earnings call: between 70 and 90 more sites are expected to close in 2025.
Why are these places closing?
There are a number of reasons why more restaurants are being closed than originally planned:
- Leases Ending: Some businesses have to close because their leases are up.
- Changing Consumer Behavior: Inflation and changes in what people like to eat affect traffic.
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Underperforming Locations: The company is speeding up the closing of stores that aren’t making enough money.
A Change in Strategy: Focusing on Locations That Work Well
Denny’s CEO Kelli Valade stressed that closing stores that aren’t doing well will free up franchise owners to put money back into remodeling and customer-focused projects. The goal is to make the brand experience better generally and get more people to visit the remaining locations.
How Will This Affect Franchisees?
These things will help franchisees:
- Less money coming in and out means better cash flow control.
- More chances to spend in remodeling and advertising projects.
- Better brand image thanks to new shop designs and better customer service.
Denny’s Plans for Expansion: Opening New Restaurants Despite Closures
Even though a lot of locations are closing, Denny’s isn’t slowing down. The company wants to open between 25 and 40 new places by 2025. These will include both Denny’s and Keke’s Breakfast Café.
What does Keke’s Breakfast Café do?
As part of its plan to grow, Denny’s bought Keke’s Breakfast Café in 2022. This brand focuses on a high-end breakfast experience that goes well with Denny’s more standard diner-style food.
What Inflation and Other Economic Factors Mean for People
The food business is still being affected by the uncertain economy, and Denny’s is no different. Several outside factors affect how people act as consumers:
Rates of inflation going up
The Bureau of Labor Statistics says that the annual inflation rate hit 3% in January 2025, which was higher than expected. This changes both the prices of doing business and the way people spend their money.
Events with very bad weather
Verostek said that bad snowstorms, wildfires in California, and other natural disasters have made it hard for businesses to run and hurt sales.
Food prices are going up
Like many other restaurants, Denny’s has been affected by rising prices of ingredients like
- Egg Prices – Costs have gone up because of bird flu outbreaks, so Waffle House and other restaurants have had to add extra fees.
- Coffee Prices – The price of coffee has gone up because of problems in the supply chain and changes caused by the weather.
Which Denny’s restaurants are going to close?
Denny’s has not publicly disclosed specific locations slated for closure. A company spokesperson stated, “Denny’s does not provide advance notice of closures. We work closely with our owners and teams when a restaurant unfortunately has to close.”
How can customers get the latest news?
If people want to know if the Denny’s near them is closed, the best ways to do so are:
- Checking the Denny’s website for new lists of locations.
- After hearing on the local news that restaurants were closing.
- Calling area franchise owners to find out what’s going on.
Conclusion
Denny’s is making tough but strategic decisions to optimize its business in 2025. While many locations will shut down, the company is also opening new restaurants and focusing on improving customer experience. Despite economic challenges, Denny’s remains committed to serving customers nationwide. For diners who love their Grand Slam Breakfasts, there’s still hope—just keep an eye on which locations remain open!
