Denny’s closing more restaurants, but will revive its value menu
- 15 outlets closed from April to June, with more closures to come
- Denny’s CEO says a return of its value menu will help
- Firm operates 1,541 Denny’s, both company-owned and franchised
EMERYVILLE, CA – FEBRUARY 03: Denny’s waitress Tahmina Najemyar (R) delivers free Grand Slam breakfasts to customers in 2009 Emeryville, California. (Photo by Justin Sullivan/Getty Images)
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(NewsNation) — Grand slams are rare in baseball, but it’s also getting harder to find the iconic Grand Slam Breakfast, as Denny’s is closing more restaurants around the U.S.
Faced with rising costs and falling sales, Denny’s closed 15 restaurants in the second quarter of 2024. Most were franchised outlets whose leases expired. It also expects to close as many as 15 more by the end of this year.
The Spartanburg, S.C. – based chain known as ‘America’s diner” shut down 57 outlets last year, and 60 in 2022. But it’s opened three new restaurants this year.
Despite dramatic hikes in its prices, Denny’s saw same-store sales drop by 6% in the second quarter, compared to the April-June period last year.
Denny’s CEO Kelli Valade blames that on restaurant prices rising faster than grocery prices, leading more people to stay home and cook for themselves.
Hoping to regain business, Denny’s said it is relaunching its $2-$4-$6-$8 value menu and adding a $10 option.
“This was a value platform unique to Denny’s that launched years ago to amazing results, and it’s a unique equity only we have,” said Valade. “We’re thrilled to bring back this consumer-friendly traffic-driving platform based on extensive testing and reengineering.”
According to the industry website Restaurant Dive, Denny’s operated and franchised a record-high 1,735 restaurants in 2017. That number fell to 1,541 at the end of June.
