Denny’s Plans to Close Up to 90 Restaurants in 2025

The iconic diner chain cites shifting consumer habits, inflation, and aging locations as key factors in its decision to accelerate closures.

Denny’s announced it will shut down between 70 and 90 underperforming restaurants in 2025, adding to the 88 closures completed in 2024.
The closures are part of a broader plan to streamline operations and improve franchisee cash flow by targeting older, low-volume locations with expiring leases.
Denny’s has faced financial challenges, including declining sales, rising inflation, and increased competition from fast food and fast-casual dining chains.
The company plans to offset some closures by opening 25 to 40 new restaurants, split between Denny’s and its subsidiary Keke’s Breakfast Cafe.
Despite remodeling efforts that boosted traffic at renovated locations, only 23 of Denny’s U.S. restaurants were updated in 2024, highlighting the scale of the challenges ahead.