Additional Coverage:
- Denny’s to close 150 ‘underperforming’ restaurants (newsbreak.com)
Denny’s, the renowned restaurant chain, has announced plans to close 150 underperforming locations, representing 10% of its restaurants, by next year. This move is part of a larger strategy to enhance profitability and streamline operations.
The decision to close certain restaurants stems from factors such as location and age, as older establishments often face challenges in renovation. Additionally, Denny’s has observed a decline in family dining, with a 20% drop since the COVID-19 pandemic.
To improve its financial performance, Denny’s will reduce its menu items from 97 to 46 and reevaluate its 24/7 operating hours. These cost-cutting measures aim to increase efficiency and appeal to diners.
Despite the closures, Denny’s remains committed to its remaining 1,375 locations. Franchisees will receive grants of $100,000 to renovate their restaurants, which typically results in a significant increase in sales.
Following the announcement, Denny’s stock experienced a sharp decline, highlighting the challenges faced by the restaurant industry in the current economic climate.
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- Denny’s to close 150 ‘underperforming’ restaurants (newsbreak.com)