By Daily Mail (U.S.) | Created at 2024-10-23 07:16:56 | Updated at 2024-10-23 09:38:57
2 hours ago
Denny's has abruptly announced the closure of 150 locations in an effort to counteract poor sales.
The chain announced 50 store closures are set to take place this year and the remaining 100 locations will be shut in 2025.
The news comes after 15 of the chains locations closed this summer alone and 70 in total have closed in the last two years.
Previously, inflation was blamed as a significant factor for the recent closures.
Denny's has closed more than 70 of its restaurants in the last two years
Steve Dunn, Denny’s executive vice president and chief global development officer, has now said the affected planned locations are either too old to be remodeled or in areas that have become unprofitable.
On Tuesday, Denny's reported its fifth straight quarter of declines in sales at locations that were open at least a year.
Since the pandemic, the 24-hr restaurant has also not returned to usual around-the-clock hours in around a quarter of locations.
Denny's has now officially slashed its hours after Dunn said it 'didn't make sense', as foot traffic and changing consumer behaviors continue to show the affects from the pandemic.
San Francisco has lost its last remaining Denny's location
Recently Denny's closed a location in San Francisco that had been running for 25 years due to rising crime rates, and another in Pennsylvania after 45 years service
The chain has also cut their menu options in half, from 97 to 46, after also noting that adults who were looking for cheaper options began ordering from the kids menu.
Denny’s (DENN) shares dropped 17% Tuesday after earnings missed analysts’ expectations. The stock is down 50% for the year.
Recently Denny's closed a location in San Francisco due to rising rates in crime after running for 25 years, and another location in Pennsylvania closed after a 45 year service.
Many dine-in restaurants have felt the effects of changing consumer habits as money gets tighter and habits changed post pandemic.
Stores like Denny's have begun releasing offer value options to lure in customers, such as Applebee's 'Whole Lotta Burger' with fries deal for $9.99 and Chili's $10.99 burger meal that is bigger and cheaper than the Big Mac.
