October 28, 2024 – Denny’s is an iconic American brand. But since the Covid epidemic, the chain has faced some financial struggles. When Covid hit the country, the chain was forced to end its famous 24-hour service in many areas, and foot traffic dropped. Even though the pandemic is behind us, that traffic hasn’t recovered for many of the chain’s locations. And that in turn is impacting the company’s revenues and forcing it to make some tough economic decisions.

In the company’s latest earnings call, Denny’s announced that its is would be closing 150 restaurants over the next 14 months. 50 of those will be closing by the end of this year. Overall, the closures amount to around 10% of the company’s locations.

The closures will take place at stores that are underperforming or which are too old to be remodeled economically.

On top the closures, the chain is going to drastically change its menu. They will be eliminating roughly 50% of the items on it. It is hoped that this change will streamline the processes used in the restaurants’ kitchens, making the business more efficient.

Denny’s is just the latest large American brand to announce it is dealing with economic issues. A number of retail and restaurant chains have announced major changes or bankruptcies this year including Big Lots, Red Lobster and Outback Steak House. As American families have felt the pinch of inflation, they have cut back on their discretionary spending. And that’s having a real impact on companies that are reliant on retail trade.

by Jim Malmberg

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