Denny’s Is Shutting Down 150 Locations: Yes, you read that right — Denny’s is closing 150 restaurants across the United States. For many Americans, that news hits close to home. Denny’s isn’t just another restaurant chain. It’s where friends gather after high school football games, truckers grab late-night coffee, and families stop during road trips for a familiar breakfast. But as 2025 unfolds, that “America’s Diner” sign may be going dark in dozens of communities. So, what’s really going on? Why is Denny’s shutting down so many of its locations — and what does this mean for the company, its customers, and the restaurant industry as a whole? Let’s dig in.
Denny’s Is Shutting Down 150 Locations
Denny’s has been a cornerstone of American dining for decades, serving comfort food at any hour of the day. While seeing 150 locations close may feel like the end of an era, this move is really about ensuring the brand stays relevant and financially strong in a fast-changing world. The diner chain isn’t dying — it’s evolving. The next time you visit a Denny’s, it might be in a sleeker building with faster service, a fresh menu, and the same comforting smell of pancakes and coffee that made it famous in the first place.
| Topic | Details |
|---|---|
| Total Closures | About 150 U.S. locations by end of 2025 |
| Main Reasons | Low sales, lease expirations, inflation, evolving dining habits |
| Company Goal | Improve profitability and modernize operations |
| Publicly Confirmed Closures | California, Texas, Idaho, Massachusetts, Ohio, Oregon, Pennsylvania |
| Financial Impact | Q3 2024 revenue: $115.6M (down 4.2% YoY) |
| Future Growth | 25–40 new openings planned, including Keke’s Breakfast Café expansions |
| Official Website | www.dennys.com |
What’s Going On With Denny’s?
In late 2024, Denny’s Corporation (NASDAQ: DENN) announced plans to permanently close around 150 restaurants by the end of 2025.
The company emphasized that the move is strategic, not a financial collapse. It’s part of a larger plan to “optimize operations,” focus on higher-performing restaurants, and eventually grow again through new models and brands.
According to People Magazine, many of the restaurants being shuttered are older, low-traffic locations that have struggled to remain profitable amid rising costs and changing consumer habits.
To put it simply, Denny’s is trimming the slowest diners so it can reinvest in stronger, more modern ones.
Why Denny’s Is Shutting Down 150 Locations?
Denny’s decision might sound sudden, but it’s been brewing for a while.
Several major factors are driving these closures, and together they tell a story about how the dining world has changed since the pandemic.
1. Declining Sales at Certain Locations
Denny’s corporate data shows that many of the restaurants closing were “underperforming units” — meaning they made less than $1.1 million in yearly revenue, compared to stronger sites that easily top $2 million.
These stores often sat in outdated buildings or in areas with fewer customers. When a location can’t even cover rising rent and labor costs, closure becomes inevitable.
2. Rising Costs and Inflation
According to Restaurant Dive, Denny’s profit margins dropped as food prices rose by nearly 20% over the past two years, and labor costs went up by double digits.
Running a diner 24 hours a day now costs more than ever. CEO Kelli Valade said during a 2024 investor call that inflation has “challenged operations across the industry, especially for full-service brands.”
3. Changing Customer Behavior
Since 2020, fewer Americans are dining out late at night.
Once a Denny’s trademark, late-night crowds have fallen by more than 30% since before the pandemic, according to data from Technomic Research.
People are also eating more at home or ordering delivery through apps like DoorDash and Uber Eats — which hurts restaurants built around dine-in service.
4. Lease Expirations
Many Denny’s closures align with lease expirations in older buildings. Instead of renewing costly contracts for low-volume restaurants, Denny’s is choosing to exit those spaces entirely.
Which Locations Are Affected?
While Denny’s hasn’t released a complete public list, several locations have been confirmed through local news sources and city filings.
Here are a few of the notable ones:
- California: Santa Rosa (West Steele Lane), Oakland (Hegenberger Rd), San Francisco (Mission Street)
- Texas: Lubbock (Avenue Q), New Braunfels (Interstate 35 Frontage Road)
- Idaho: Boise (Airport Way), Nampa (Northside Blvd)
- Massachusetts: Worcester (Lincoln St)
- Ohio: Ashland and Ontario
- Oregon: Ontario (Goodfellow St)
- Pennsylvania: Bucks County (Lincoln Hwy)
Financial and Industry Context of Denny’s Is Shutting Down 150 Locations
In the third quarter of 2024, Denny’s reported $115.6 million in revenue, down from $120.6 million the year before.
Comparable-store sales — a key performance measure — declined 2.7%.
To be clear, Denny’s isn’t bankrupt or collapsing. It still operates around 1,450 U.S. locations and hundreds more internationally. But like IHOP, Applebee’s, and Perkins, Denny’s is tightening its belt to prepare for a leaner, more digital future.
The restaurant industry as a whole is facing challenges:
- Rising rent and food costs are squeezing margins.
- Staffing shortages have driven wages up 10–15% nationwide.
- Competition from fast-casual chains like Chipotle and Panera is fierce.
So, Denny’s is adapting before things get worse.
Denny’s CEO Speaks Out
Denny’s CEO, Kelli Valade, addressed the closures directly in a November 2024 earnings call:
“We’re not shrinking out of fear; we’re refining for growth. This plan allows us to reinvest in technology, new store formats, and the guest experience. It’s about creating a stronger Denny’s for the future.”
This statement reflects the company’s broader goal: to evolve from a traditional sit-down diner into a flexible, tech-friendly dining brand.
What’s Next for Denny’s?
Despite the closures, Denny’s isn’t slowing down completely. In fact, it’s making some smart moves for the future.
1. Launching “Denny’s On Demand”
This online ordering and delivery platform is now active in more than 80% of U.S. stores. It lets customers order pickup or delivery with ease, keeping Denny’s competitive with fast-casual chains.
2. Investing in Modern Design
Denny’s is experimenting with smaller, more efficient store layouts focused on drive-thru and takeout service. These “compact footprint” restaurants reduce overhead and fit modern eating habits.
3. Expanding Keke’s Breakfast Café
The company acquired Keke’s Breakfast Café, a Florida-based brunch chain, in 2022. With strong sales and a younger customer base, Denny’s plans to open at least 40 new Keke’s locations by 2026.
4. Menu Revamps
To stay fresh, Denny’s continues to refresh its menu. Limited-time dishes like the Cinnamon Roll Pancake Breakfast and Bourbon Bacon Burger have proven especially popular, boosting seasonal traffic.
How Customers Are Reacting?
The closures have stirred plenty of emotion on social media. Many fans shared personal stories of Denny’s as their go-to stop after concerts, road trips, or college exams.
One user on Reddit wrote, “My hometown Denny’s just closed — that place was open my entire life. End of an era.”
Others see the bright side, saying newer stores and better menus are worth the transition.
As one X (formerly Twitter) user posted: “If it means cleaner diners and faster service, I’m all for it.”
How Denny’s Compares to Other Chains?
Denny’s isn’t the only major diner chain making tough calls.
Competitors are facing similar issues:
| Restaurant Brand | Stores Closed (2023–2025) | Reason |
|---|---|---|
| IHOP | ~100 | High lease costs, declining traffic |
| Perkins | 45 | Bankruptcy restructuring |
| Applebee’s | 35 | Brand consolidation |
| Friendly’s | 18 | Post-pandemic downturn |
What’s clear is that the entire family-dining segment is under pressure to adapt to digital-first, takeout-heavy consumer behavior.
How Customers Can Support Local Denny’s Locations?
If you’re worried about losing your favorite Denny’s, there are a few practical ways to help:
- Dine at Local Franchises: Many Denny’s are independently owned — your business helps them survive.
- Order Through Denny’s On Demand: Using the app or website keeps profits higher for franchisees.
- Share Feedback: Positive feedback online helps local owners build visibility.
- Try Sister Brands: If a Denny’s near you closes, you might soon see a new Keke’s or a modern Denny’s pop up nearby.
Industry Expert Opinions on Denny’s Is Shutting Down 150 Locations
According to hospitality analyst Mark Kalinowski,
“Denny’s closures are part of a necessary evolution. They’re responding to shifts in customer behavior and positioning themselves for the next decade of dining.”
That aligns with national data showing that restaurants that invest in digital ordering and smaller footprint models have 10–12% higher profitability compared to those that don’t.
So while the closures may sting for fans, they likely signal a stronger long-term business plan.
Goodbye, Denny’s? The Shocking Truth Behind the Collapse of America’s Iconic Diner Chain
