By The Independent (World News) | Created at 2024-10-22 21:00:31 | Updated at 2024-10-22 23:40:38
2 hours ago
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Popular diner chain Denny’s will close 150 restaurants nationwide over the next year and consider major changes to its famous 24/7 operating hours.
Denny’s announced in an earnings call on Tuesday that 50 locations are set to close by the end of 2024, while the remaining 100 will shutter in 2025, reported CNN.
The exact locations of those restaurants were not immediately announced, though the closures amount to around a tenth of Denny’s in the US. A total of 1,375 restaurants will be left following the closures.
According to Steve Dunn, executive vice president and chief global development officer for Denny’s, the restaurants that will be closed are those that are “underperforming” – and are either too old to be remodeled or are no longer turning profits.
It comes as Denny’s shares dropped 17 percent on Tuesday after earnings missed analysts’ expectations. The stock is down 50 percent for the year.
Denny’s, which opened its first restaurant 71 years ago in 1953, is well-known for its policy of being open at all hours.
However, since the Covid-19 pandemic, about a quarter of its restaurants have not returned to those around-the-clock hours. Denny’s will now be easing up on the requirement for franchisees to do so, according to CNN.
On Tuesday, Dunn admitted that 24/7 operating hours are a “contraction that happened for everyone” and that fewer customers during those off hours mean it “didn’t make sense” for a restaurant to remain open, the outlet reported.
Further changes include a slimmed-down menu at Denny’s – with the number of items due to be slashed from 97 to 46. The chain also noticed that cash-strapped adults were increasingly ordering off its kid’s menu to save money, the chain said.
The Independent has contacted Denny’s for further comment on the closures and other changes.
Denny’s is the latest fast-casual restaurant chain to make closures, following in the footsteps of Olive Garden and Red Lobster, both of which faced financial struggles earlier this year.
The beleaguered seafood dining chain faced serious financial damage caused by a $20 “endless shrimp” promotion that proved unexpectedly popular with customers, and reportedly cost it millions last year. It filed for bankruptcy in May.
