Copyright Mechanicsburg Patriot News
The rise of the breakfast spot in America has been something to behold across the past couple of years. The places are popping up everywhere with all kinds of eye-catching bacon, pancake and French toast options. Toss in the fact that breakfast is pretty versatile — bacon and eggs and for the folks down South those good old grits are good any time of the day — and it shouldn’t be a surprise that establishments seem to be popping up everywhere. But what is good for folks who love that type of food, isn’t necessarily good for the folks who have been churning it out for years now. Competition can cut into sales, and that brings us to Denny’s, which has shuttered multiple locations with “dozens” more on the chopping block, according to reports. Not all is bad for Denny’s fans, though. According to the company’s August earnings report, revenue was up ($117.7 million) versus the same quarter in 2024 ($115.9 million). However, the company’s system-wide same-restaurant sales were reportedly down 1.3% compared to the same quarter in 2024. Denny’s CEO Kelli F. Valade addressed the plan to shutter more locations in the company’s second-quarter earnings call back in August. “I also want to take a moment and provide an update on our previously communicated strategy to close underperforming restaurants and return to pre-pandemic growth of flat to slightly positive in future years,” she said. “The surgical and methodical approach, which began in 2023 and will be completed by the end of this year, was specifically designed to optimize and enhance the overall health of the franchise system with the goal of returning to net flat to positive growth by 2026. “Rationalizing the portfolio was the right thing to do, and we’re seeing the results that we wanted and expected from this process,” she added. “It has already resulted in franchise AUV (average unit volume) increase of approximately 5% or nearly $100,000 in AUVs.” Denny’s closed 88 restaurants in 2024 and announced plans to close between 70 and 90 restaurants in 2025. That means some folks will be losing their local Denny’s and that is bad news for fans of the restaurant. However, some folks might be gaining a Denny’s near them as the chain also hoped to open between 25 and 40 new locations this year.
