Denny's is closing 150 locations in the latest sign of the squeeze on family dining

[Street Knowledge]

• Denny's plans to close 150 stores to boost annual unit volume sales amid declining sales.
• Chains that traditionally attract more families, like Red Lobster and Applebee's, are feeling the squeeze.
• "Families have been hit hard by inflation and so are dining out less," one analyst told Business Insider.

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Denny's is the latest casualty of the squeeze on family dining chains, announcing this week that it plans to close about 150 locations before 2026.

A Securities and Exchange filing from the chain Tuesday showed that around 50 stores will be shut this year, with an additional 100 closing in 2025.

This represents roughly 10% of Denny's 1,586 stores overall. It has not yet been announced which locations will close.

"We believe this is absolutely the right thing to do to make our system stronger," Denny's CEO Kelli Valade told investors.

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To reach a goal of growing annual unit volume sales to $2.2 million, Valade said "underperforming" restaurants would be closed.

A difficult economic environment​

"This move should not be viewed as a negative reflection on Denny's or the broader restaurant industry, but rather as a strategic adjustment to maintain financial health in a difficult economic environment," Gregg Majewski, CEO and founder of Craveworthy Brands, told Business Insider.

Shifts are currently happening in all kinds of dining spaces, and sometimes consolidation is necessary to help the overall brand, he said.

On Tuesday, the 71-year-old firm reported a 0.1% decline in same-store sales in its third quarter, and shares subsequently plummeted 18% that day.

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It signifies the fifth consecutive quarter of year-on-year sales slumps.

Denny's is closing 150 locations in the latest sign of the squeeze on family dining

About 50 restaurants will be shut this year with the other 100 closing in 2025 in an attempt to raise annual unit volume sales to $2.2 million.

www.businessinsider.com

 

[Rekkapryde]

don't think it's just inflation...I think that going to these places are not seen as cool/nice by younger heads now. If it's not a more upscale place you can brag about on social media, it's heavily looked down upon. Even by broke mufukkaz.

 

[Canada Goose]

How come you can't get Steak from Denny's on Doordash/Uber Eats while you can in the restaurant



I like Denny's so this is sad news but the fact that you can't order steak from them on food ordering apps is some BS.

 

[Luke Cage]

don't think it's just inflation...I think that going to these places are not seen as cool/nice by younger heads now. If it's not a more upscale place you can brag about on social media, it's heavily looked down upon. Even by broke mufukkaz.

Yep, i agree. I even mentioned that these places might actually want to consider increasing their pricing, going upscale, and acting more exclusive.
That might actually bring in more business. Right now they are in a bad spot, where they are basically seen as being in the same company as a fastfood place.
People see bringing a date to dennys as no less appropriate than bringing a date to Mcdonalds. They still eat at Mcd's though because of the convenience and value. Dennys can't compete with them there though. So they need to go another direction.

 

[TEKBEATZ]

Waffle house took over

 

[Malcolmxxx_23]

don't think it's just inflation...I think that going to these places are not seen as cool/nice by younger heads now. If it's not a more upscale place you can brag about on social media, it's heavily looked down upon. Even by broke mufukkaz.

People rather go to Cheesecake Factory instead

 

[feelosofer]

The last time I went to Denny's Hoobastank had a signature burrito there.

Congratulations if you're old enough to remember Hoobastank.

 

[Samori Toure]

The only squeezing going on related to family dining at Denny's were the logs that people had to push out immediately after eating at that dump.

How many times was that shythole restaurant accused of racism anyway?

 

[Kid Dynamite]

Denny’s is like Cracker Barrel to me don’t go because they are a racist establishment

Back in the day there were stories after stories about Denny’s

 

[Koapa]

Denny's is trash. Waffle House got them in a chokehold.

Cracker Barrel curbstomping they azz.

I grew up with the Red Lobster and Denny's. I literally saw the shift from establishments like them years ago.

 

[IsThatBrothaMouzone?]

don't think it's just inflation...I think that going to these places are not seen as cool/nice by younger heads now. If it's not a more upscale place you can brag about on social media, it's heavily looked down upon. Even by broke mufukkaz.

This 100%.

Most Americans live near major metro areas. If you live near a big city....what do you have???

Options.

I can go to Denny's....but why.......when there's Cindi's Diner down the street or Bruh'Man Breakfast Cafe around the corner. Most people either go to trendy spots (for IG) or they go to mom & pop shops. Denny's is also in a weird place because most people prefer either IHOP or Waffle House. So even in their own category, they're like 3rd or 4th best...and that's just big chain breakfast spots. Then you have health-conscious chains like First Watch and chains that simply make better food (Original Pancake House).

The cheap, big-brand sit down restaurant isn't popping like that anymore. I can order better shyt on DoorDash.

With inflation, it feels like the big brands are raising prices enough to be in-line with mom & pop joints. Why go to Denny's and spend $50 when you can go to a better place for the same price?

 

[ORDER_66]

They cant afford to pay the rent...

 

[Windows 91]

Hope they go all the way under someday.

 

[WesCrook]

don't think it's just inflation...I think that going to these places are not seen as cool/nice by younger heads now. If it's not a more upscale place you can brag about on social media, it's heavily looked down upon. Even by broke mufukkaz.

The entire atmosphere at Denny's is antiquated.

 

[MicIsGod]

My friend went somewhere in Italy and told me how different it was when it came to family dining. Everything is kind of arranged around certain times designated for families to eat together.