The financially ailing Denny’s Corp. (NASDAQ: DENN) announced it was closing 150 of its lowest-performing restaurants, roughly 10% of its locations.
According to an Associated Press report, the Spartanburg, South Carolina-headquartered Denny’s stated that roughly half of the closures will occur this year and the rest will be closed in 2025. The locations were not made public by the company, which raised the news during an investors’ meeting.
The closures occur after Denny’s reported its fifth straight quarter of year-over-year declines in same-store sales, which are sales at locations open at least a year.
“Some of these restaurants can be very old,” said Stephen Dunn, Denny’s executive vice president and chief global development officer. “You think of a 70-year-old plus brand. We have a lot of restaurants that have been out there for a very long time.”
Denny’s is the latest restaurant chain to announce the closure of eateries – this year has seen similar announcements from chains including Red Lobster, BurgerFi, Rubio’s Coastal Grill and Shari’s Restaurants.
Photo courtesy of Denny’s
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May be a very old brand, but a few years back they made significant changes to their menu that chased away some of their base customers, while likely attracting few new ones.