Denny’s, long known for its round-the-clock doors and endless breakfasts, plans to close 150 restaurants by year-end, cutting 12% of its locations amid a $620 million buyout and sweeping menu changes. This move signals deep changes in casual dining as economic pressures reshape familiar eateries.
The Scale of Closures
Denny’s is undertaking its biggest round of shutdowns in years. From 2023 through 2025, 150 underperforming sites will close permanently. Eighty-eight locations shuttered last year, with 70 to 90 more targeted now. CEO Kelli Valade stated that rationalizing the portfolio was the right step, yielding expected results. Two Texas sites are among the confirmed closures: Lubbock at 607 Ave. and New Braunfels at 1348 I-35 N Frontage Road. Texas has about 185 Denny’s, so these represent less than 1% of the state’s total. The company has not released the full list, leaving franchisees and residents in uncertainty.
End of the 24/7 Era
The chain’s signature always-open model is fading. Many locations dropped 24/7 hours in 2024, as it no longer suited low-traffic spots. This shift ends a core promise that defined Denny’s as a constant refuge for late-night crowds, truckers, and shift workers. Cultural habits tied to those hours are slipping away quietly.
Menu Overhaul Hits Hard
Denny’s is slashing its menu from 97 items to 46, a 53% cut based on data showing a 9% optimization gain in speed and waste reduction. Staples like the Grand Slam and chicken-fried steak stay, but specialty pancakes and some build-your-own choices vanish. The streamlined offerings aim to boost efficiency but alter the expansive diner feel that drew crowds.
Financial Pressures Mount
Same-store sales dropped 2.9% in Q3 2025, per reports from November. Food costs and labor pressures have eroded thin profit margins. Many sites were too old to remodel affordably, making closures timed to lease expirations a logical strategy to minimize penalties. Rising labor and commodity costs continue pressuring margins industry-wide, with Denny’s facing similar headwinds as competitors.
Buyout and Broader Shifts
A $620 million all-cash deal, announced in November and set to close in Q1 2026, involves TriArtisan Capital Advisors, Treville Capital Group, and Yadav Enterprises, which operates approximately 550 restaurants. Denny’s maintains closures predate the acquisition and plans new sites in 2025, including Keke’s Cafes acquired in July 2022. A February 2024 partnership with ArrowStream targets supply-chain savings for surviving units. Confirmed closures span seven states, with locations in California, Idaho, Massachusetts, Ohio, Oregon, Pennsylvania, and Texas. Denny’s is not alone; chains like IHOP, Applebee’s, Cracker Barrel, and Bob Evans face similar contractions amid fast-casual competition and shifting habits.
Human and Community Toll
Closures affect workers and communities that relied on Denny’s as social hubs. Franchisees, often with life savings invested, face mounting pressures under rising costs. Small towns feel this most acutely, as familiar meeting spaces for seniors, youth, and workers disappear.
Outlook Hangs in Balance
By year-end, the 150 closures wrap up, handing Yadav a leaner operation focused on digital ordering, delivery, and prototypes. Denny’s targets net flat to positive growth by 2026. Success pivots on executing amid rising costs and consumer caution. For workers, franchisees, and patrons, the stakes involve not just jobs and meals, but the endurance of a diner tradition in a fast-changing food landscape.
Sources:
“Denny’s Is Closing 150 Restaurants — See Which Texas 24/7 Hotspots Made the List.” Yahoo Finance, December 8 2025.
“Major Restaurant Chain Closing Locations Amid $620 Million Buyout.” Syracuse.com, December 3 2025.
“Denny’s Closes Underperforming Restaurants Amid $620 Million Acquisition.” People Magazine, December 2 2025.
“Major Diner Chain Closing 150 Restaurants Nationwide After Going Private.” NJ.com, December 4 2025.