American dinner food chain, Denny's, announced Tuesday that they plan to close 150 underperforming restaurants by the end of 2025 due to a fall in revenue and changing consumer habits.
Do we know which ones yet? Not exactly, but the executive did say they would likely shut down those too old to remodel or those in unprofitable locations.
The closures represent a 10% reduction in locations, with 50 restaurants expected to shut down in 2024 and 100 more in the next year.
During an earnings call with investors, the company's vice president said yearly shares dropped almost 50%. Thus the reason why they decided to downscale.
The company hopes this move will allow it to open more volume building elsewhere. Denny's also said in their statement that restaurant inflation is outpacing grocery price inflation, making it harder for their customers to eat out.
As of September 2024, there are 1,586 Denny's restaurants around the world, but most of them are within Texas, California, Florida, and Arizona.