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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Overview

A summary of the key points of this story verified across multiple sources.

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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