Denny's Accelerates Store Closures Amid Market Shifts
Denny's, known for its breakfast offerings, is expediting its planned store closures in 2025 due to evolving consumer preferences favoring fast-food and takeout options. In an earnings call, CFO Robert Verostek confirmed the closures would encompass both underperforming locations and those with expiring leases.
According to Restaurant Dive, the additional closures represent an expansion of previous plans to shutter 150 restaurants. Denny's remains a publicly traded company, but its share value has plummeted below $5, significantly lower than the $24 high reached in 2019.
The brand concluded 2022 with 745 U.S. stores, predominantly located in Arizona, California, Florida, and Texas. Denny's insights indicate a decline in foot traffic for "family dining" establishments, with similar trends observed among other brands in the category, such as Applebee's and Hooter's.
However, exceptions include Chili's and Texas Roadhouse, which have reportedly benefited from enhanced value perception and customer service investments. Despite the accelerated closures, Denny's is still planning new openings, with 14 slated for this year, along with several location refurbishments.