Denny’s has closed another 15 restaurants in the US as the chain struggles with rising costs and declining sales.
It is the latest restaurant chain to experience a decline in the number of guests. After two years of steep price increases, customers are eating out less and less.
The closures at the famous chain, also known as America’s diner, come on top of 57 closures last year and 60 closures in 2022.
One of the locations that closed recently, on June 19, was the last remaining Denny’s in Langthorne in Bucks County, Pennsylvania.
Last month, another popular Denny’s store closed in Ashland, Ohio.
Denny’s has already closed 57 locations this year
Denny’s same-store sales were down 0.6 percent from the same period last year, which means it saw a sharp drop in customers given that it raised prices.
Robert Verostek, Denny’s executive vice president and chief financial officer, blamed inflation as a major factor in the closures when he spoke to investors in February.
He pointed out that the breakeven point for a restaurant to stay open had risen from $1 million to $1.2 million due to higher food and wage costs.
To attract customers, Denny’s, like other fast-casual stores, is competing on price.
Restaurants and fast food chains are increasingly trying to offer affordable options to attract customers who fear inflation and eat out less often.
Denny’s will officially relaunch its $2-$4-$6-$8 menu later this summer.
Denny’s CEO Kelli Valade told investors that the return of the chain’s classic meal deals will appeal to loyal customers.
“This was a value platform that was unique to Denny’s and launched years ago with amazing results. It’s a unique equity that only we have,” Valade said during the call.
The struggling chain is expected to close another 15 underperforming locations
“We are extremely excited to bring back to market this user-friendly traffic generation platform, which we have extensively tested and redesigned,” she added.
Applebee’s has also been offering some great deals, as they too have been hit with mass closures.
In an effort to lure Americans fed up with rising fast food prices, Applebee’s launched the “Whole Lotta Burger” with fries for $9.99.
The move to compete with fast food chains is similar to that of Chilli’s, which also launched a $10.99 hamburger meal that’s bigger AND cheaper than the Big Mac
A Big Mac meal can easily cost nearly $15, while Shake Shake, Five Guys and Wendy’s alone sell burgers costing $10.