TRENTON, NJ — Denny’s announced plans on Tuesday to close 150 of its lowest-performing restaurants as the company attempts to reverse declining sales. The closures will account for roughly 10% of the chain’s total locations, with half of the closures set to occur this year and the remainder in 2025.
Stephen Dunn, Denny’s executive vice president and chief global development officer, cited aging properties and shifts in consumer traffic patterns as reasons for the decision. “Some of these restaurants can be very old,” Dunn said during a meeting with investors. “You think of a 70-year-old plus brand. We have a lot of restaurants that have been out there for a very long time.”
The locations slated for closure were not disclosed, but Dunn indicated that some faced lingering effects from pandemic-era changes in customer behavior. This marks a strategic shift for the brand, which has faced five consecutive quarters of year-over-year declines in same-store sales, a key industry metric tracking sales at locations open for at least a year.
The company has 34 restaurants in New York and 6 in New Jersey, based on the most recent data available. The brand, known for its 24-hour service and extensive breakfast menu, has seen traffic declines in certain areas that have been slow to rebound post-pandemic, according to Dunn.
The company once had 53 restaurants in New York and 29 in New Jersey.
The company did not provide specific details on the timing or locations of the closures, but confirmed that the process would be gradual and continue into 2025.
