“Major Restaurant Chain Announces Widespread Closures”
During a recent meeting on Wednesday, Verostek revealed that the restaurant locations being closed had been in operation for an average of nearly 30 years. Verostek explained, “In any mature brand, when restaurants have been open for that length of time, it is natural for trade areas to shift over time.” He further stated, “Accelerating the closure of lower-volume restaurants will enhance franchisee cash flow, enabling them to reinvest in traffic-driving initiatives such as our established and successful remodel program.”
So, how many Denny’s locations are expected to close? Although Denny’s has not yet disclosed a specific list of the closing stores, it is projected to close up to 178 restaurants across the country by 2025, as indicated in the investor meetings. To compensate for these closures, the company plans to open approximately 25 to 40 new locations. However, about half of these new establishments will be traditional Denny’s restaurants, while the remaining half will be Keke’s Breakfast Cafes, a brand acquired by Denny’s in 2022.
In a statement provided to USA TODAY on Friday, Denny’s emphasized that it “does not provide advance notice of closures” and instead collaborates “closely with our owners and teams when a restaurant unfortunately has to close.” As per the Denny’s website, there are currently 1,323 locations in the United States, with California, Florida, and Texas hosting a significant number of stores.
Contributing to this report: Bonnie Bolden from the USA TODAY Network. This article was originally featured on USA TODAY: More Denny’s restaurants closing down: Over 150 locations impacted.
