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Denny's will shut down between 70 and 90 restaurants in 2025, the company said in a news release and earnings call on Wednesday, Feb. 12. The chain closed 88 restaurants in 2024, bringing the total to nearly 180 closings expected by the end of 2025.
While Denny's hasn't revealed which restaurants are on the closing list, the already shuttered locations were open for an average of 30 years.
"In any mature brand, when restaurants have been opened that long, it is natural that trade areas can shift over time," Denny's CFO Robert Verostek said to investors. "Accelerating the closure of lower volume restaurants will improve franchisee cash flow and allow them to reinvest into traffic-driving initiatives like our tested and proven remodel program."
The company previously said it would close 150 restaurants but the number has increased in response to shifting customer habits. The chain did say it opened 14 new locations in 2024.
Denny's is shifting its business model as diners change their habits, especially with more opting for takeout orders rather than dining in restaurants. According to CNN, Denny's is planning to trim the number of items on its menu from 97 to 46 and will no longer require restaurants to be open 24/7.
Executives also told investors that Denny's isn't immune to the effects of inflation, which rose to about 3.0 percent in January. The chain specializing in many breakfast dishes is also facing higher costs due to skyrocketing egg prices, which surged 15 percent from December 2024 due to supply chain issues fueled by the bird flu outbreak.
Founded in 1954 as Danny’s Donuts, Denny's has about 1,300 locations nationwide.
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