Denny’s will close 150 restaurants

Denny’s is the latest restaurant chain to reduce its presence. The chain announced that it will close 150 restaurants over the next 12 months. The expectation is to close 50 by the end of 2024 and is considering changes to opening hours.

The company said it is closing locations that are below expectations. Some are old and cannot be remodeled and others are in locations that are no longer profitable.

People in the restaurant industry say there are many reasons why some restaurant chains are struggling.

“While customer demand has returned, restaurants still face rising operating costs, supply chain disruptions and labor shortages that have only worsened in the wake of the pandemic,” said Milos Eric, co-founder of OysterLink. “Financial pressures, combined with debt payments, have made it extremely difficult for some establishments to remain open, even as hiring continues to meet daily demand.”

Looking for something more than ‘basic’

Bob Vergidis, chief vision officer at pointofsale.cloud, sees other challenges in the industry as consumer preferences change. He says customers no longer look for “basic” restaurants and when they are delighted or disappointed, social media amplifies their opinions across the internet.

“Mediocre food or bad service no longer go unnoticed.” he said. “Restaurants with weak offerings are at risk of closing quickly in today’s rapidly evolving market.”

Denny’s is known for never closing its doors, so a hungry customer can grab a plate of bacon and eggs at 3 a.m., but that could change. Many Denny’s stores began closing at night during the pandemic and never returned to normal hours. The company said it is reviewing its requirement that franchises remain open 24 hours a day.