Denny’s Is Closing About 90 Stores Nationwide This Year

Denny’s is preparing to shut down approximately 90 restaurants nationwide in 2025. Robert Verostek, the restaurant’s chief financial officer, revealed the plans during a call with investors on Wednesday, Today.com reported. Verostek said some of the closures are due to lease expirations.

“In any mature brand, when restaurants have been open that long, it is natural that trade areas can shift over time,” Denny’s CEO Kelli Valade said on the call, according to Today.com. “Accelerating the closure of lower-volume restaurants will improve franchisee cash flow and allow them to reinvest into traffic-driving initiatives like our tested and proven remodel program.”

While closing down many locations, the company also plans to open between 25 and 40 restaurants in 2025. About half of those will be Denny’s locations, while the other half will be Keke’s Breakfast Cafe locations—the restaurant chain Denny’s acquired in 2022.

Verostek said several factors are affecting consumer behavior, but Denny’s is “working closely with its suppliers to ensure minimal disruptions.” With the annual inflation rate rising to 3% in January, according to the Bureau of Labor Statistics, executives said the increase is among the factors influencing consumer spending. Verostek also noted that recent California wildfires and severe snowstorms across the country have impacted consumer behavior.

“There is just a lot of uncertainty,” Verostek said, Today.com reported.

Additionally, concerns around bird flu and tariffs are contributing to shifting consumer trends. Waffle House, Denny’s rival breakfast chain, is also feeling the effects of economic uncertainty. Due to rising egg prices, Waffle House recently announced a 50-cent surcharge on eggs.

Denny’s, which has opened more than 1,500 locations since its founding in 1953, said it’s “unable to provide specific location information” about its closures.

“Denny’s does not provide advance notice of closures,” a spokesperson told Today.com. “We work closely with our owners and teams when a restaurant unfortunately has to close.”