In a bold move to rejuvenate its operations, American diner giant Denny’s has revealed plans to shutter 150 of its less successful outlets by 2025. This strategic decision targets around one-tenth of its current restaurants, signaling a significant shift in its business approach. The specific locations facing closure have yet to be publicly revealed, although insiders suggest that many will shut down this year.
The motivation behind this decision comes on the heels of sustained revenue drops over the last five quarters, primarily due to pandemic-related challenges and inflation. As a result, Denny’s has faced a near 18% decrease in its stock price. Observers are keen to see if these closures will extend beyond the United States to international branches, as Denny’s presence spans multiple continents including Europe, Asia, and the Middle East.
Denny’s, founded as Danny’s Donuts in 1953, is iconic for American breakfast favorites like the “Moons Over My Hammy” and the “Grand Slam.” Despite its historical impact and global footprint, the company must navigate the same turbulent waters afflicting many other brick-and-mortar businesses today.
The decision to close stores follows industry-wide trends where physical retail outlets are transforming to keep pace with a rapidly shifting market landscape. As Denny’s moves forward, the company remains committed to maintaining quality dining experiences at its remaining locations, aiming to meet the evolving needs and tastes of its loyal customers.
Source: Thai: Denny’s to Close 150 Underperforming Restaurants by 2025
