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US:Denny’s, the Iconic American Diner, Closing Locations Nationwide

admin by admin
April 25, 2024
1 min read
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Denny’s, the iconic American diner known for its hearty breakfast and late-night meals, is facing closures across the country.

In 2023, Denny’s closed 57 locations due to challenges related to inflation. Factors such as rising food costs, rent prices, and labor wages are contributing to the financial strain.

Robert Verostek, Denny’s CFO, mentioned a steady decline in customer traffic, with a 6 percent decrease over recent months.

The closure of these 57 locations is just the beginning, as Denny’s plans additional shutdowns due to ongoing inflationary pressures.

During a recent corporate call, Verostek revealed that the annual profit needed to sustain a Denny’s location has risen from $1 million to $1.2 million, deterring potential franchisees from investing in the chain.

In their Q4 2023 earnings release, Denny’s indicated the impending closure of another 10 to 20 restaurants nationwide.

For many, Denny’s holds nostalgic memories of family outings in the ’80s and ’90s.

However, with these closures, the future of this once-iconic diner chain remains uncertain. Time will tell how many more Denny’s locations will disappear by year’s end.

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