Denny's will close at least 70 more restaurants in 2025
"In any mature brand, when restaurants have been open that long, it is natural that trade areas can shift over time," said Robert Verostek, the chain's chief financial officer.
Denny's restaurant
Renowned restaurant chain Denny's reported that it plans to close at least 70 establishments in 2025.
In an earnings release, obtained by CNN, the company revealed that it closed 88 locations last year and will close between 70 and 90 locations in 2025, bringing the figure closer to 180 closures.
Although the chain did not disclose the locations of the restaurants it will close, it indicated that some of the restaurants that closed were selected because they have expired leases, have been open for more than 30 years (making them too costly to remodel) or are in areas that have become unprofitable.
"In any mature brand, when restaurants have been open that long, it is natural that trade areas can shift over time," said Denny's CFO Robert Verostek.
"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," he added.
Similarly, it was learned that the restaurants that were remodeled saw a 6.5% increase in customer traffic over the year. However, the company only renovated 23 establishments in 2024, which equates to a small fraction of the 1,300 locations it owns nationwide.
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