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Denny’s is saying goodbye to 150 locations: The reason why the restaurant chain has begun closing diners
A look at why the breakfast giant, Denny’s, will close 150 locations by the end of next year.
In October, Denny’s executives announced that they would close 150 stores by the end of 2025 and are slated to close their doors by the end of this year.
The company has not released a complete list of the closing locations but has clarified the reasons behind the significant number of closures. As of September this year, Denny’s operated 1,586 locations, of which 1,358 are in the United States, despite its global presence. Currently, the US states with the highest number of Denny’s locations are California (360), Texas (196), and Florida (119).
Interest in healthier options
During the presentation, the company’s leaders discussed their expansion into various restaurant types as public preferences evolve. Denny’s is traditionally linked to the classic American breakfast, but as many potential customers seek healthier choices, they are shifting another segment of their business accordingly to meet that demand.
Denny’s also owns Keke’s Breakfast Cafe, which provides a healthier menu and helps the company reach a different customer base. The company views this separate brand as complementary to Denny’s rather than a competitor.
Moreover, Denny’s is expanding the availability of alcohol on their menus to compete with other chains that offer these beverages. Traditionally recognized for breakfast, alcohol has not been a primary focus for Denny’s; however, with Keke’s, the business sees a chance to broaden its offerings.
A focus on low-performing stores
The closures will target older, underperforming stores, as the company has discovered that new locations generate greater revenue. Alongside these closures, Denny’s is renovating multiple locations to modernize and enhance their appeal to potential customers.
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