A Beloved Diner Chain Just Announced It's Closing Dozens Of Locations

One of America's most iconic, beloved, and longstanding diner chains is closing more locations nationwide. In a recent earnings release for investors, Denny's revealed that it is closing about 30 more stores in 2025. This follows Denny's previous announcement of 150 store closures, which is now underway.

Denny's previous downsizing plans have already shuttered many locations, with at least 88 restaurants ceasing operations by the end of 2024. With these new closures expected, Denny's target for 2025 is to close another 70 to 90 stores, meaning approximately 180 fewer Denny's locations when all is said and done. Currently, there are approximately 1,300 Denny's restaurants in the United States.

Denny's says it was able to rescue some underperforming restaurants with successful remodels, which generated a 6.5% year-over-year increase in customers for these restaurants. However, remodels are expensive and difficult: The restaurant chain was only able to complete a total of 24 of them last year.

The reasons Denny's cited for some restaurant closures may seem familiar to the food industry at large. In addition to mundane reasons like expiring leases or prohibitively expensive building renovations, a major motivation for these impending closures is an ever-evolving market. And some are simply not as lucrative as they used to be.

This partially echoes the plight of Domino's, which announced the coming closure of over 200 locations, mostly in Japan. However, unlike Denny's, Domino's business in the U.S. is strong, but its Japanese locations have suffered from changes in consumer habits that have rendered dozens of once-profitable stores economic dead weight.

Unfortunately, the chain restaurant business is no stranger to dire economic straits. Last year, TGI Fridays suddenly closed 49 U.S. locations amid sagging business and is now facing bankruptcy. Here's hoping Denny's can avoid the fate of America's many disappearing chain restaurants.