Denny's closes 150 restaurants and reduces its menu due to financial problems

Popular diner chain Denny's will close 150 locations over the next year, according to an announcement made during a recent earnings call. The plan, which will affect about 10% of its 1,375 restaurants in the country, is part of a strategy to address the company's poor financial performance.

Steve Dunn, Denny's executive vice president and global development director, explained that the closings will focus on underperforming restaurants, which have negatively affected the company overall. The locations to be closed are mostly restaurants that are too old to be remodeled or located in areas where operations have become unprofitable. Fifty of these locations are expected to close by the end of 2024.

Menu cuts: From 97 to 46 items

Denny's, which is known for operating 24 hours a day, is also reviewing its late-night policy. Since the pandemic, about a quarter of the restaurants have not returned to 24/7 schedules. In response, the company will allow its franchisees to eliminate the requirement to be open all day long.

Another significant change will be the reduction of the Denny's menu from 97 items to 46 items. The company has noted that some adults have opted to order off the kids' menu to save money, reflecting economic pressure affecting both customers and restaurants.

The closure of Denny's locations adds to a growing list of chains affected by rising operating costs. Recently, Rubio's Coastal Grill closed 48 locations in California, and Red Lobster and Hooters have also closed dozens of locations due to financial problems.