Denny's to Close 150 Restaurants and Adjust Operating Hours
Closure of Restaurants
Denny's is closing 150 restaurants over the next year, impacting its financial strategy. Fifty locations are targeted to close by the end of 2024, and the remaining will shut down in 2025. These changes amount to 10% of its outlets, leaving a total of 1,375 locations.
Changes in Operations
As part of a major restructuring, Denny's is reevaluating its 24/7 operating hours. The chain's executive team has acknowledged that changing customer behaviors and heightened costs have prompted a rethink of this policy. With labor and food expenses rising significantly, Denny's will allow franchisees to determine their operating hours, a departure from prior mandates.
Menu & Stock Implications
Coupled with the closures, Denny's has streamlined its menu, reducing options from 97 to just 46. This has been driven by customer demands for more economical meals, with adults increasingly opting for items from the kids’ menu. Following these announcements, Denny's stock fell by 17%, with a significant 50% drop observed over the year.
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