Denny’s has abruptly announced the closure of 150 locations in an effort to combat poor sales.
The chain has announced that there will be 50 store closures this year and the remaining 100 locations will close in 2025.
The news comes after 15 of the chain’s locations closed this summer alone and a total of 70 in the past two years.
Previously, inflation was seen as a major factor in the recent closures.
Denny’s has closed more than 70 restaurants in the past two years
Steve Dunn, Denny’s Executive Vice President and Chief Global Development Officer, has now said that the affected planned sites 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 sales declines at locations open at least a year.
Since the pandemic, the 24-hour restaurant has also not returned to the usual 24-hour hours at about a quarter of locations.
Denny’s has now officially cut its hours after Dunn said it “didn’t make sense” as foot traffic and changing consumer behavior continue to show the effects of the pandemic.
San Francisco has lost its last remaining Denny location
Recently, Denny’s closed a location in San Francisco that had been in business for 25 years due to rising crime rates, and another in Pennsylvania after 45 years of service
The chain has also halved their menu options, from 97 to 46, after also noticing that adults looking for cheaper options were starting to order from the kids’ menu.
Denny’s (DENN) shares fell 17% on Tuesday after earnings beat analysts’ expectations. The stock is down 50% this year.
Recently, Denny’s closed a location in San Francisco due to rising crime rates after 25 years in business, and another location in Pennsylvania closed after 45 years in business.
Many restaurants have felt the impact of changing consumer habits as money tightens and habits change post-pandemic.
Stores like Denny’s have started rolling out enticing options to lure customers, like Applebee’s “Whole Lotta Burger” with fries for $9.99 and Chili’s $10.99 hamburger meal that’s bigger and cheaper than the Big Mac.