Denny’s shutters 15 restaurants blaming ‘inflation’ – but CEO boasts ‘unique equity’ will bring back customers

AFTER shutting 57 locations last year, Denny's closed another 15 restaurants and warned that more could be on the way.

Denny's has been closing multiple locations in several states.

The company announced that 15 restaurants closed in the last fiscal quarter and warned that as many as 15 more could shut by the end of the fiscal year.

The Ashland, Ohio, restaurant closed on July 20, with the nearby Ontario restaurant soon to follow, reported Ashland Source.

A spokesperson for Denny's told the outlet that closing a location is "never an easy decision."

Pennsylvania has also seen multiple closures as the chain shut down a Middletown Township and a Bucks County location.

A note on the door of the Middletown location alerted customers to the closures.

The letter thanked guests for their patronage and encouraged them to visit the nearby Essington locations.

Locals were heartbroken to hear about the closure, saying it was a hit spot for teens to hang out at in the 90s.

"Some good old-time memories at that place," commented one customer on a Facebook post about the closure.

THE KITCHEN IS CLOSED

These closures came after Denny's revealed it closed 25 restaurants in the first quarter of this year alone.

Robert Verostek, CFO, said the company was still struggling to recoup its financial losses from the pandemic.

Traffic also dropped by 6% in the first three months of this year, reports Restaurant Business Magazine.

Sales decreased 0.6%, and company-unit margins fell 2.2% to 13.2% since July 2023.

Thomas Pilbeam, a franchisee who had 27 Denny's restaurants, said the pandemic upended his business.

He was forced to file for Chapter 11 bankruptcy in October and was down to only eight locations.

Restaurant closures in 2024

BOSSES at major dining chains have announced a series of restaurant closures. The U.S. Sun has compiled a list of the chain's affected.

• Cracker Barrel: Stores in Medford, Oregon, Columbia, South Carolina, and Sacramento, California, have closed.
• Mod Pizza: Bosses dramatically shuttered 27 shops in April, including some in the state of California.
• Frisch's Big Boy: Restaurant chiefs confirmed the closure of a restaurant in Covington, Kentucky in April.
• Outback Steakhouse: The chain will shutter 41 'underperforming' locations this year.
• Two Bucks: Four restaurants in Ohio closed in April.
• Chili's: A restaurant in Port Arthur, Texas, has shut permanently as well as one in Irvine, California.
• Friendly's: Bosses confirmed an establishment in Ronkonkoma, Long Island will close.
• Pizza Hut: A restaurant in Glen Falls, New York, closed at the end of March, followed by four in Ohio in June and 15 in Indiana.
• Denny's: Two restaurants in Boise and Nampa, Idaho, have closed.
• Carl's Jr.: The first Boise, Idaho location has closed.
• In-N-Out: An Oakland location closed earlier in the year due to crime in the area.
• Cheesecake Factory: The chain is set to shutter a location in Memphis, Tennessee in July.
• Applebee's: Announced the closure of between 25 and 35 locations this year.
• Taco John's: Shuttered a restaurant in Minnesota and put the building up for sale in May.
• Rubio's Coastal Grill: Has announced the closure of 48 locations in California after filing for bankruptcy.
• Burger King: Shuttered a location in California in June after 30 years.

NEW TO THE MENU

Denny's CEO, Kelli Valade, told investors that things could be turning around soon.

The chain will relaunch its $2-$4-$6-$8 value menu this summer, which she said could attract customers.

"This was a value platform unique to Denny's that launched years ago with amazing results, and it's a unique entity only we have," she said on an earnings call.

"We're thrilled to bring back this consumer-friendly, traffic-driving platform based on extensive testing and reengineering," she said.

Diners were outraged recently when they saw an old $5.99 menu item now cost $17.

Plus, see the popular seafood restaurant closing a Florida location later this month.