A beloved diner chain with 72 years of history is shutting its doors
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For decades, families have gathered at familiar booths to sip coffee and share late-night meals under neon lights.
Now, the future of one of America’s most recognizable diners looks a little less certain as changes sweep through its long-standing locations.
Behind the comforting image of pancake and bacon breakfasts lies a shifting business landscape that has forced difficult decisions.
The next few months may mark the end of an era for some communities that have counted on those round-the-clock doors always being open.
Denny’s has confirmed that 90 of its restaurants will permanently close by the end of 2025 as the chain continues to battle challenging economic conditions.
The company already shuttered dozens of locations earlier this year after a similar wave of closures in 2024.
CEO Kelli F. Valade explained that the plan, which began in 2023, was meant to “optimize and enhance the overall health of the franchise system.”
She said, “The surgical and methodical approach, which began in 2023 and will be completed by the end of this year, was specifically designed to optimize and enhance the overall health of the franchise system with the goal of returning to net flat to positive growth by 2026.”
Valade added that “rationalizing the portfolio was the right thing to do,” emphasizing that results have met company expectations.
Many of the restaurants being closed had operated for roughly three decades and were no longer profitable or faced lease expirations.
Also read: After 20 years, this iconic restaurant chain is reopening its doors and fans can’t wait
Executives noted that the closures would allow franchise owners to focus on stronger-performing sites and reinvest in upgrades.
The company has also been steadily remodeling existing restaurants to improve the customer experience and strengthen cash flow.
CFO Robert Verostek said inflation and higher food prices have weighed heavily on the chain, while “consumer uncertainty” has made it harder to predict demand.
He noted that older restaurants in changing neighborhoods often struggle to keep pace with shifting customer patterns.
“When restaurants have been open that long, it is natural that trade areas can shift over time,” Verostek said during an earnings call. Each remodel, he added, costs an estimated $250,000, but the investment is considered essential to future growth.
Denny’s has also reviewed more than 260 additional locations flagged as underperforming, though not all are slated for closure.
Also read: Heartbreaking: Iconic store closes, locals react!
Restaurants that remain open are expected to undergo renovations as part of the company’s broader modernization effort.
Despite the ongoing downsizing, the brand continues to open new locations, signaling cautious optimism for recovery.
According to Valade, Denny’s expects to debut between 20 and 40 new restaurants by the end of this year after opening 14 and remodeling 23 in 2024.
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As the iconic diner chain reshapes its future, longtime patrons may soon notice familiar signs disappearing from their neighborhoods. The company insists the closures are strategic steps toward stability, not a retreat from its roots. Still, for customers who grew up with Denny’s as a 24-hour fixture, the news feels personal. How do you feel about the closures—will you miss having a Denny’s nearby?
Now, the future of one of America’s most recognizable diners looks a little less certain as changes sweep through its long-standing locations.
Behind the comforting image of pancake and bacon breakfasts lies a shifting business landscape that has forced difficult decisions.
The next few months may mark the end of an era for some communities that have counted on those round-the-clock doors always being open.
Denny’s has confirmed that 90 of its restaurants will permanently close by the end of 2025 as the chain continues to battle challenging economic conditions.
The company already shuttered dozens of locations earlier this year after a similar wave of closures in 2024.
CEO Kelli F. Valade explained that the plan, which began in 2023, was meant to “optimize and enhance the overall health of the franchise system.”
A beloved diner chain with 72 years of history is shutting its doors. Image source: Nick Sarvari / Unsplash
She said, “The surgical and methodical approach, which began in 2023 and will be completed by the end of this year, was specifically designed to optimize and enhance the overall health of the franchise system with the goal of returning to net flat to positive growth by 2026.”
Valade added that “rationalizing the portfolio was the right thing to do,” emphasizing that results have met company expectations.
Many of the restaurants being closed had operated for roughly three decades and were no longer profitable or faced lease expirations.
Also read: After 20 years, this iconic restaurant chain is reopening its doors and fans can’t wait
Executives noted that the closures would allow franchise owners to focus on stronger-performing sites and reinvest in upgrades.
The company has also been steadily remodeling existing restaurants to improve the customer experience and strengthen cash flow.
CFO Robert Verostek said inflation and higher food prices have weighed heavily on the chain, while “consumer uncertainty” has made it harder to predict demand.
He noted that older restaurants in changing neighborhoods often struggle to keep pace with shifting customer patterns.
“When restaurants have been open that long, it is natural that trade areas can shift over time,” Verostek said during an earnings call. Each remodel, he added, costs an estimated $250,000, but the investment is considered essential to future growth.
Denny’s has also reviewed more than 260 additional locations flagged as underperforming, though not all are slated for closure.
Also read: Heartbreaking: Iconic store closes, locals react!
Restaurants that remain open are expected to undergo renovations as part of the company’s broader modernization effort.
Despite the ongoing downsizing, the brand continues to open new locations, signaling cautious optimism for recovery.
According to Valade, Denny’s expects to debut between 20 and 40 new restaurants by the end of this year after opening 14 and remodeling 23 in 2024.
Read next:
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