Twenty-four-hour diner and breakfast restaurant Denny’s recently announced the closure of 150 branches out of its 1,700 locations worldwide. Fifty of these closures are going to take place by the end of this year and the remaining 100 locations will be shut down in 2025.
“We believe this is absolutely the right thing to do to make our system stronger,” Denny’s CEO Kelli Valade said. According to a Securities and Exchange filing from the chain on Tuesday, October 22nd, the company seeks to improve its cash flow as the chain will try to reach a goal of growing annual unit volume sales to $2.2 million.
Executive Vice President and Chief Global Development Officer Stephen Dunn told investors at the meeting: “Some of these restaurants can be very old. So, when you think of a 70-year-old plus brand, you have a lot of restaurants that have been out there for a very long time.”
Meanwhile, Denny’s reported its fifth straight quarter of declines in sales at locations that were open for at least a year. Since the Wuhan coronavirus (COVID-19) pandemic, the restaurant has not returned to its usual around-the-clock hours in around a quarter of its locations. Because of this, the chain has now officially slashed its hours. This came after Dunn said it “didn’t make sense” especially since foot traffic and changing consumer behaviors continue to show as effects from the pandemic. –Natural News
Inflation is likely taking its toll on restaurants too. Neil Saunders, the managing director of GlobalData’s United States retail and consumer division, told Business Insider that although restaurant spending is forecast to grow by almost five percent in 2024, this is predominantly driven by higher prices and inflation. “Generally, the family dining segment where Denny’s sits is more pressured as families have been hit hard by inflation and
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