4 sources·Business

Denny's Accelerates Store Closures as Inflation and Consumer Preferences Shift

Denny's plans to close up to 178 locations, facing inflation and shifting consumer preferences in the restaurant industry.

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  1. Denny's closing more restaurants: Over 150 locations impacted by wave of closures

    This, paired with the 88 he told investors already went dark in 2024, equates to as many as 38 additional store closures from the original October announcement.

    Denny's closing more restaurants: Over 150 locations impacted by wave of closures

    USA TODAYUSA TODAY·3M
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  2. Denny’s Set To Shutter Nearly 30 Locations Amid Inflation, Bird Flu

    The popular restaurant chain Denny’s is set to close nearly 30 locations amid concerns regarding inflation and the bird flu.

    Denny’s Set To Shutter Nearly 30 Locations Amid Inflation, Bird Flu

    Daily CallerDaily Caller·3M
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    Right
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  3. Denny’s to close nearly 30 more locations as inflation, bird flu slam chain

    Denny’s is planning to close nearly 30 more restaurants than previously announced as stubborn inflation threatens the 72-year-old chain’s survival.

    Denny’s to close nearly 30 more locations as inflation, bird flu slam chain

    New York PostNew York Post·3M
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    Leans Right
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  1. USA TODAY
  2. Daily Caller
  3. NBC News
  4. New York Post

Updated: Feb 15th, 2025, 3:28 PM ET

Summary

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Denny's has intensified its closure plan, announcing it will shut down up to 178 locations in 2025 due to persistent inflation and changing consumer habits favoring fast food. CFO Robert Verostek stated closures will focus on lower-performing locations and those with expiring leases. Last year, the chain closed 88 restaurants and will still open 25-40 new venues, including Keke’s Breakfast Cafes. Economic pressures, severe weather events, a bird flu outbreak affecting egg prices, and competition from other family dining chains like Applebee's and Outback Steakhouse have added to Denny's operational challenges.


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