The Denny’s restaurant chain has closed 150 locations across the United States as a result of a brand restructuring. On November 3, it was acquired by a group made up of Capital Advisors, Treville Capital Group, and Yadav Enterprises, for $620 million, but the closure plans had already been announced during its October 2024 Investor Day. The closures have been sudden, as neither the list of closed locations nor the establishments that will remain open has been announced.
However, these closures are part of a strategy that had already been outlined by Denny’s CEO, Kelli F. Valade, in 2024. Despite these numerous closures, the company states that they are part of the path toward internal restructuring to strengthen its operational base and that positive results have already been achieved in a two-year growth plan.
Denny’s
The Denny’s restaurant chain started as Danny’s Donuts in 1953 in California, beginning as a donut and coffee shop. It was renamed Denny’s in 1959 to avoid confusion. Today, it is a well-known American family-style diner chain, famous for serving typical American breakfasts at any time, and also offers hamburgers, sandwiches, and desserts in a casual and affordable setting, making it a dining experience very representative of American culture. Its presence has expanded to several countries, including Mexico, Canada, and the Caribbean, among others.
Denny’s branch closures
With the aim of internally restructuring its operations, the Denny’s restaurant chain has closed 150 branches across the United States. Although these closures coincided with the sale of the company on November 3 by a group consisting of Capital Advisors, Treville Capital Group, and Yadav Enterprises for a total of $620 million, this decision had already been made beforehand. Specifically, it was announced during their Investor Day in October 2024. While the list of closed branches has not been detailed, some local media outlets have reported on the sudden closures, as happened with the one located in the Bay Area.
Restructuring plans
Already in 2024, Denny’s CEO, Kelli F. Valade, explained after the second quarter, in August of this year, that the chain had launched a strategy aimed at closing those locations whose performance was not optimal. According to Valade, the company was following a very specific path: “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 improve the overall health of the franchise system with the goal of returning to flat to positive net growth by 2026. Rationalizing the portfolio was the right thing to do, and we are seeing the results we wanted and expected from this process”.
What will happen with Denny’s?
Just as the company has not provided a list of the establishments it has closed, it has also not shared the ones that will remain open. However, after 70 years of history, the chain has undergone a total restructuring aimed at achieving sustainable growth and strengthening its operational base, which is expected to bear fruit within two years.