OAN Staff James Meyers
2:23 PM – Wednesday, October 23, 2024
In tragic news for “Grand Slam” breakfast lovers in the U.S., Denny’s will close 150 locations over the next year, cutting their hours of operation and menu options by more than half as the financially-pressed diner establishment cuts back on spending, the eatery said on Tuesday.
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Currently, Denny’s has close to 1,500 locations around the U.S. and they will close at least 50 of them by the end of 2024 and the remaining 100 next year.
The locations that are closing are all “underperforming restaurants,” adding that they are either “too old” to be remodeled or are in areas that have been unprofitable sales wise, according to Denny’s executive vice president Steve Dunn.
They are dragging down the company’s financial performance, he noted.
However, a specific list of closing restaurants wasn’t immediately announced. As a result of the major announcement Denny’s shares plummeted 17.6%, to $5.47, on Tuesday.
The chain will slash its menu items from 97 to 46 as more adults have started ordering from the kids menu in order to save money, according to a company spokesperson.
Denny’s also stated that it will be cutting back its 24/7 operating hours, recognizing that many of its franchisees can no longer afford to stay open for such an extended period.
About one quarter of its eateries never resumed keeping their location open 24/7 after the COVID-19 pandemic. However, one bright side is that the value menu lifted sales in its most recent quarter and it increased sales of its deliver-only brands like Banda Burrito.
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