Denny’s plans to shut down 150 of its restaurants within the next year, which accounts for 10% of its total locations. The company also plans to cut its menu from 97 items to 46 to streamline operations. Denny’s Corporation is an American table service diner-style restaurant chain that has restaurants located globally. In this slideshow, we will dive into the history of Denny’s and the reasoning behind recent closings.
It originally opened as a coffee shop called Danny’s Donuts in Lakewood, California, and is known for being open 24/7, serving breakfast, lunch, and dinner without closing on holidays. Denny’s began franchising in 1963, with most of its locations now being franchisee-owned. Franchise agreements typically require 24/7 operation.
The COVID-19 pandemic affected many Denny’s locations, leading to temporary closures and, in some cases, reduced hours of operation. The first 50 closures are expected by the end of 2024, with another 100 in 2025, focusing on underperforming sites.
Contributing factors to the closures include aging locations, decreased foot traffic, and a shift in customer spending habits. Many Denny’s locations have reduced their operating hours, impacting revenue.
Denny’s was founded by Harold Butler and Richard Jezak in 1953, and they opened Danny’s Donuts in Lakewood, California, in 1954. In 1959, the name was changed from Danny’s Coffee Shops to Denny’s Coffee Shops, and eventually to Denny’s in 1961.
By 1981, Denny’s had grown to over 1,000 restaurants across all 50 U.S. states.
The company utilized Googie architecture, with distinctive designs like a boomerang-shaped roof and a zigzag shingled roof, established by architects Armet & Davis.
In 1977, Denny’s introduced the Grand Slam breakfast, which has remained popular.
Denny’s parent company filed for Chapter 11 bankruptcy in 1997, leading to a dominance of Denny’s operations and a subsequent name change to Denny’s Corporation.
From 1990 to 1996, Denny’s offered a free birthday meal with restrictions on how often customers could redeem the offer.
Denny’s opened its first restaurant in Australia in December 1982, but it closed in 1989 due to changing consumer preferences.
In 2017, eight Denny’s locations in Colorado closed abruptly due to a franchise owner’s failure to pay nearly $200,000 in back taxes and over $30,000 in sales tax. Employees reported issues such as bounced checks and many were left unemployed without warning when the IRS seized the restaurants.
On January 31, 2024, a Denny’s in Oakland, California, also permanently closed after 54 years, citing concerns for the safety and well-being of customers and employees.