The closures come as sales have declined and the chain faces increased competition and shifting consumer habits. The restructuring is intended to streamline operations and position Denny’s for future growth.

By Joe Lombardi From Daily Voice

Denny’s is serving up big changes.

About 150 underperforming restaurants across the US will close by the end of 2025 as the iconic diner-style restaurant chain undergoes a major restructuring.

The closures come as sales have declined and the chain faces increased competition and shifting consumer habits. The restructuring is intended to streamline operations and position Denny’s for future growth.

The shakeup comes after the company announced Monday, Nov. 3, that it had been acquired for $620 million and taken private by a group led by TriArtisan Capital Advisors, Treville Capital Group, and Yadav Enterprises, one of Denny’s largest franchisees, according to Restaurant Business. 

This move comes as part of a strategy launched in 2023 to optimize Denny’s franchise system and return the brand to pre-pandemic growth levels.

Denny’s has already closed 88 locations in 2024 and plans to target mostly low-volume sites for these new closures, People reports. The chain will still retain over 1,300 restaurants nationwide, but has not released a list of which locations will shut down. The company says the move is meant to “optimize the franchise system” and focus on stronger markets.

Months before the buyout, CEO Kelli F. Valade addressed the ongoing closures, telling investors in August that Denny’s was following a "previously communicated strategy to close underperforming restaurants," according to People.

Founded in 1953 in Lakewood, California, Denny’s is now headquartered in Spartanburg, South Carolina, and operates around 1,500 locations, making it one of America’s most recognizable chains.

Check back to Daily Voice for updates.