Rough Earnings Call: Denny’s Decimated, Half of Menu to Be Axed
By Jared Harris October 27, 2024 at 7:30am
It’s been a rough year for Denny’s, the iconic American breakfast eatery chain, and a drastic plan to save the establishment was announced in a recent earnings call.
Perhaps, the most dramatic change: Denny’s has announced it will close 150 of its restaurants in two phases over the next year.
In a Tuesday earnings call, executives announced the first 50 restaurants would close by the end of 2024. The next 100 would close in 2025.
According to NPR, the closings amount to 10 percent of the company’s footprint.
A list of locations slated for closure has not yet been released, but it was stated that “underperforming” sites will be the focus of the purge.
The reasons for Denny’s ongoing issues are numerous.
Some of the locations are simply too old. Denny’s executives say this prevents affordable updating and remodeling.
Others have seen a sharp decrease in foot traffic — as many other businesses have similarly dealt with under the current (and strenuous) economic climate.
Some stores are simply seeing a drop in revenue from cash-strapped customers.
Is there a Denny’s near you?
In a detail more indicative of the general state of the American economy than Denny’s itself, the chain reported some adult customers are ordering off the children’s menu to save money.
Another factor is a drop in traffic due to many locations ending 24-hours-a-day/7-days-a-week service.
Pandemic-related issues in 2020 largely halted the company’s iconic round-the-clock service, and nearly a quarter of Denny’s locations have not returned to the 24-hour model.
Denny’s corporate is now reconsidering its policy on operating hours.
In the past, franchises were required to remain open 24 hours a day.
While the trend is not unique to Denny’s, the company is struggling under the conditions. Year-to-date, the restaurant’s stock has dropped by 50 percent.
According to KTRK-TV, the mass closings are not the only change coming to Denny’s.
Most of the menu will also be cut, leaving only 46 of the original 97 items.
The change isn’t just aimed at easing overwhelmed customers. The company is hopeful that the halving of the menu will streamline how the kitchen operates.
If Denny’s is able to turn the ship around with some of these drastic changes, this American establishment could be seeing better days — and sunnier breakfasts — ahead.
Jared has written more than 200 articles and assigned hundreds more since he joined The Western Journal in February 2017. He was an infantryman in the Arkansas and Georgia National Guard and is a husband, dad and aspiring farmer.
Jared has written more than 200 articles and assigned hundreds more since he joined The Western Journal in February 2017. He is a husband, dad, and aspiring farmer. He was an infantryman in the Arkansas and Georgia National Guard. If he’s not with his wife and son, then he’s either shooting guns or working on his motorcycle.
Location
Arkansas
Languages Spoken
English
Topics of Expertise
Military, firearms, history
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