Denny’s to Close 150 Locations Amid Rising Costs and Changing Consumer Trends
Denny’s has announced plans to close 150 of its restaurants over the next year, with 50 set to close by the end of 2024. The decision is part of the chain’s strategy to address underperforming locations that either need costly renovations or are in less profitable areas. Rising operational costs, labor shortages, and supply chain disruptions continue to challenge the restaurant industry, adding financial strain even as customer demand rebounds. Milos Eric, co-founder of OysterLink, explains, “The pressures of rising costs and debt repayment make it difficult for many restaurants to stay open, despite ongoing efforts to meet demand.”
Shifts in Consumer Preferences and Industry Standards Force Restaurants to Adapt
Consumer preferences are also shifting, impacting how restaurants approach customer satisfaction. Today’s diners expect more than “basic” service and quality, and social media can quickly amplify both positive and negative experiences. Bob Vergidis, chief vision officer at pointofsale.cloud, notes that “mediocre food or poor service no longer go unnoticed. Restaurants with weak offerings risk rapid closures in today’s fast-moving market.” As a result, even established chains like Denny’s must reassess their operations to stay competitive.
Known for its 24/7 service, Denny’s may soon adjust its hours as well, a significant shift for a brand historically open around the clock. During the pandemic, some Denny’s locations began closing overnight, and the chain is now reconsidering its 24-hour model to adapt to post-pandemic challenges and evolving customer expectations.
