Denny's is slimming down.
The budget-friendly, belly-busting chain will close 150 underperforming restaurants, reduce hours and cut its vast menu over the next year as financially-strapped diners cut back on spending. The company announced on Tuesday that this is the plan.
Denny's, which has about 1,500 stores nationwide, plans to close 50 by the end of the year and the remaining 100 by 2025, executives said.
Steve Dunn, executive vice president of Denny's, said all of the stores being closed are “unprofitable restaurants” that are either too old to renovate or are located in unprofitable areas.
He added that these are hurting the company's financial performance.
A specific list of restaurants closing was not immediately announced.
Denny's stock plunged 17.6% to $5.47 on Tuesday.
The Spartanburg, South Carolina-based chain said it plans to cut its menu from 97 items to 46 because more adults are ordering children's menu items to save money.
This summer, the company lit up social media with a diner's post. Reddit photos The $18 Lumberjack Slam with ham, bacon, sausage, egg hash browns and toast is a popular breakfast item titled “Stunning.”
Recognizing that many of its franchisees can no longer afford to remain open for this long, Denny's announced that it will be relaxing its signature 24/7 business hours.
About a quarter of restaurants did not reopen 24/7 after the pandemic.
In August, the last remaining Denny's at 816 Mission Street in San Francisco reportedly closed its Union Square section.
“We were the only ones left and we stayed open until the last possible day,” said owner Chris Haku. told SFGATE at that time.
Mr. Haq blamed the restaurant's poor business performance on binge drinking.
He also lamented the fact that business conventions, a key source of revenue, have dried up in recent years as the tech industry has shifted to hybrid work during the pandemic.
