Even the most sacred of foodservice institutions are being pushed to their limits by economic chal-lenges. A number of chains say they’ll be closing dozens of locations this year. And Denny’s says it will be closing even more restos than planned…
One of Denny’s famous Breakfast Slams…
There was a time when everybody at my former inlaws’ church left the sanctuary after the regular Sunday morning service. And reunited 15 minutes later for table service at the local Denny’s…
A institution
I have no idea what they do after church these days. But I do know that – as of a few days ago when I last drive by – their ‘local’ Denny’s was still going strong. If the number of vehicles in their parking lot was any indication.
The legendary ‘national diner’ chain has been a mainstay of many middle-class neighbourhoods for many decades, across North America. It’s become synonymous with ‘Baby Boomer’ culture as later generations have moved on to their own signature socializing and dining ‘spaces’. And as such, Denny’s overall appeal has slowly swindled.
At the chain’s most recent (February 12, 2025) shareholders’ financial conference call revealed, the chain is planning to close between 70 and 90 locations this year. It’s the most common – and usually the first – option resto chains employ to cut costs and bouy up profits when times get tough. But that’s on top of the 150 stores Robert Verostek, the company’s Chief Financial Officer (CFO), told in-vestors, during the October call, that he wanted to shutter by the end of 2025.
We’ve seen brief periods where it looked as though Denny’s was on the ropes. But the brand has always bounced back – albeit with a noticeably smaller footprint.
Not all closing permanently
“In any mature brand, when restaurants have been open that long, it is natural that trade areas can shift over time,” Denny’s CEO Kelli Valade said on the investor call. “Accelerating the closure of lower-volume restaurants will improve franchisee cash flow and allow them to reinvest into traffic-driving initiatives like our tested and proven remodel program.”
The remodel plan includes converting some locations to new, contemporary Keke’s Breakfast Cafe locations. Denny’s acquired Keke’s in 2022. A total of 25 to 40 new and revamped locations are scheduled to open this year.
My take
So… A year from now, Denny’s will again be left with an even smaller footprint than the one it’s starting this year with. And economists predict the uncertainties that currently plague the food price, food supply chain and dining-out pictures will be just as precarious as they are today.
It’s hard to say where Denny’s will end up by the end of next year. But I suspect that, the sooner it transmogrifies itself to Keke’s – or something like it – the better off shareholders, diners and every-body else in its overall picture will be.
It would be a shame to see the iconic Denny’s identity gone from the ‘diner’ landscape altogether. But that’s the price folks in the resto game pay for not keeping up with the times and the evolving tastes of successive generations…
~ Maggie J.