Denny’s is finalizing a multiyear plan to close more than 150 underperforming locations across the United States. The closures are part of a broader strategy to stabilize finances, optimize its franchise system, and strengthen the brand’s overall footprint.
Saudi Arabia Loosens Alcohol Rules for Rich Foreign Residents, Sparks Internet Reactions↗
Why Is Denny’s Shutting Down So Many Locations?
The diner chain explained that these closures aim to:
- Remove consistently low-performing restaurants
- Focus on profitable and strategically located stores
- Return the company to flat or slightly positive growth by 2026
Denny’s will continue operations at its remaining 1,300+ U.S. restaurants and nearly 1,500 locations worldwide. Despite the closures, the chain plans to open new locations in 2026.
Impact of Private Buyout
The closures come ahead of a $620 million buyout of Denny’s by private investors, which values the chain at $322 million for shareholders. The deal is expected to be finalized in the first quarter of 2026, potentially leading to further operational and strategic changes in the coming year.
List of 2025 Denny’s Closures
The closures affect multiple states, with California being the hardest hit:
- California: Santa Rosa – 1000 W. Steele Lane, Oakland – 601 Hegenberger Road, San Francisco – 816 Mission Street
- Idaho: Boise – 2580 Airport Way, Nampa – 607 Northside Blvd
- Massachusetts: Worcester – 494 Lincoln St.
- Ohio: Ashland – U.S. Route 250, Ontario – 720 N. Lexington Springmill Road, Goodfellow St. in Ontario
- Pennsylvania: 640 E Lincoln Hwy, Bucks County
- Texas: Lubbock – 607 Ave., New Braunfels – 1348 I-35 N. Frontage Road
Executives noted that 88 restaurants were already closed in 2024, and another 70–90 locations are expected to shut by the end of 2025.
Conclusion
Denny’s restaurant closures reflect a strategic move to optimize profitability and streamline operations. While some communities lose local diners, the chain aims to focus resources on high-performing locations and ensure a stronger brand presence nationwide. The upcoming private buyout could bring additional changes to the company’s footprint in 2026.