Denny’s Abruptly Announces the Closing of 150 Restaurants — and a Shocking Change in Operating Hours

Denny’s abruptly announced the closure of 150 stores in an effort to counteract weak sales.

The chain announced that 50 stores will close this year and the remaining 100 stores will close in 2025.

The news comes after 15 of the chains closed this summer alone and 70 in total have closed in the last two years.

Previously, inflation was considered a significant factor in the recent closures.

Denny’s has closed more than 70 of its restaurants in the last two years

Steve Dunn, Denny’s executive vice president and chief global development officer, now said the affected planned locations are either too old to be renovated or are in areas that have become unprofitable.

On Tuesday, Denny’s reported its fifth consecutive quarter of declining sales at locations that had been open at least a year.

Since the pandemic, 24-hour dining has also not returned to normal 24-hour operating hours in about a quarter of locations.

San Francisco lost last remaining Denny’s location

Denny’s recently closed a location in San Francisco that had been in operation for 25 years due to rising crime rates, and another in Pennsylvania after 45 years of service.

Denny’s has officially reduced its hours after Dunn said it “didn’t make sense” as foot traffic and changes in consumer behavior continue to show the effects of the pandemic.

The chain also reduced menu options by half, from 97 to 46, after also finding that adults looking for cheaper options started ordering from the children’s menu.

Denny’s (DENN) shares fell 17% on Tuesday after earnings fell short of analysts’ expectations. Shares are down 50% year to date.

Recently, Denny’s closed a location in San Francisco due to rising crime rates after 25 years of operation, and another location in Pennsylvania closed after 45 years of service.

Many restaurants have felt the effects of changing spending habits as money becomes scarcer and habits change following the pandemic.

Stores like Denny’s have started rolling out value options to attract customers, like Applebee’s ‘Whole Lotta Burger’ with fries for $9.99 and Chili’s $10.99 burger, which is bigger and cheaper than Big Mac.