Denny's, the famous American restaurant chain that is famous for its 24/7 breakfast service, has announced that it will close more locations than initially planned. In October, the company unveiled its intention to close 150 under -performance stores by the end of 2025, with 50 closures expected in 2024. During an investor calling on Wednesday, CFO Robert Verostek that will now close 70 to 90 stores in 2025.
The closures are mainly attributed to the expiry of lease contracts and the poor condition of aging buildings, which are not financially feasible for renovation. Stephen Dunn, the vice -president of Denny, stated that many of the affected locations are too old for remodeling and have not been profitable.
“In every adult brand, when restaurants have been open for so long, it is obvious that trading areas can shift over time,” said Robert Verostek van Denny, Chief Financial Cnn. “Accelerating the closure of restaurants with a lower volume will improve the cash flow of franchisees and enable them to reinvest in traffic-driving initiatives such as our tested and proven renovation program.”
Ropping restaurants have indeed seen an increase of 6.5% in traffic during the year. However, the company only renovated 23 locations in 2024, which is a small part of the 1,300 locations it has in the United States.
Denny's has struggled in recent years because of inflation and rising food costs. Sell in January and February NOSED after a strong end until 2024 because of “consumer uncertainty that we are currently seeing,” said Verostek.
