Many businesses are closing in the United States because they can’t cope with the current economic climate. This is the case with Denny’s, which is expected to close up to 90 of its more than 1,300 locations across the country this year. The company, often referred to as “America’s restaurant,” announced last year that it would close 150 underperforming restaurants by the end of 2025.
Executives indicated that Denny’s had closed 88 restaurants in 2024
The main reason for the closures is related to the country’s economy. The company, which originated in California, explained on its website that this represents a strategic move to adapt to changing consumer patterns and current economic pressures. The locations slated for closure are underperforming. In February, executives indicated that Denny’s had closed 88 restaurants in 2024 and aimed to close between 70 and 90 more by the end of this year.
Denny’s current strategy is not limited to simply closing locations
Restructuring has proven to be a reality for the company. Denny’s current strategy is not limited to simply closing locations. The company is also projecting a controlled expansion by opening 25 to 40 new restaurants by 2025, which offers some optimism for the future. In fact, Denny’s has also announced plans to open new restaurants as the end of its footprint reduction plan approaches, a plan it stated was necessary to improve financial efficiency and strengthen the brand.
In early November, Denny’s announced that it had signed a $620 million sale agreement with TriArtisan Capital Advisors
The fact is that the company’s strategic moves suggest that many factors are involved in the restructuring. The plan envisions dividing new openings equally between the traditional Denny’s brand and Keke’s Breakfast Café, a chain acquired by the company in 2022 that is experiencing constant growth in the United States. In early November, Denny’s announced that it had signed a $620 million sale agreement with TriArtisan Capital Advisors, owner of TGI Fridays, Treville Capital Group, and Yadav Enterprises, a company that owns and operates approximately 550 restaurants in the United States.
Denny’s current infrastructure comprises more than 1,300 restaurants across the United States
Therefore, the closures of existing locations and the “new” acquisitions and contracts have kept Denny’s in the news spotlight. As explained above, the company has been closing stores since 2023 as it attempts to regain a strong financial position, and its CEO, Kelli Valade, stated that her goal is to return to flat to positive net growth by 2026. Denny’s current infrastructure comprises more than 1,300 restaurants across the United States, meaning that the closures would represent approximately five to six percent of its total network of establishments. So far, the following locations have closed in California: 1000 W. Steele Lane, Santa Rosa; 601 Hegenberger Road, Oakland; and 816 Mission Street, San Francisco.
“As trends stabilize and our sales initiatives are rolled out”
Although the company hasn’t confirmed the list of closed locations, reports are coming in from locals confirming the closure of some stores. The restructuring is still underway. According to Robert Verostek, the company’s chief financial officer, a new loyalty program and renovations will also be implemented “as trends stabilize and our sales initiatives are rolled out,” he stated. The goal is to improve the customer experience and potentially reverse the current downward trend.
Ultimately, the company’s next steps are still up in the air. The $620 million acquisition is expected to close in the first quarter of 2026, as Denny’s recently announced. But as with everything, this is something that needs to be approved and valued, so we’ll have to wait and see what ultimately happens with Denny’s future.