Popular restaurant chain Denny is set to close nearly 30 locations amid concerns about inflation and avian flu.
The company’s chief financial officer, Robert Verostec, said in a call with investors that the chain could close up as many as 90 restaurants this year: the New York Post (NYP). It has been reported Friday. Executives said inflation blames the pullback on sales. Inflation rose in January as the consumer price index reached 3%, the Bureau of Labor Statistics announcement Wednesday.
“It’s no surprise that at any mature brand, when restaurants are open for a long time, the trading area can change over time,” Denny CEO Kelly Barrede said over the phone. “Accelerating the closure of low-capacity restaurants will improve franchisee cash flow and allow us to reinvest in traffic driving initiatives, including tested proven remodeling programs.”
The exact location of the closing store was not announced as of Friday. (Related: We will be shuttering around 1,000 stores from iconic discount product brands as tough economic factors focus on sales)
“We look forward to 2025, but there’s still more to do within our brand, especially to navigate short-term consumer sentiment, which is influenced by macroeconomic factors,” Valade said. I said in a statement on Wednesday. “The actions we take are well positioned to provide shareholder value to maintain our position as a value leader, invest in our brands, reduce costs and drive traffic. ”
Denny will close nearly 30 more locations as a slum chain for inflation, bird flu https://t.co/eaomaovlrg pic.twitter.com/rnazalittw
– New York Post (@nypost) February 14, 2025
Verostek mentioned how harsh weather across the country has affected sales, including heavy rain and California wildfires, the NYP noted.
Other breakfast restaurant chains have adjusted their pricing due to the lack of eggs due to the National Bird Flu outbreak. Waffle House adds an extra 50 cents of eggs. It has been reported. According to the NYP, Verostek said Denny’s “works closely with suppliers to ensure minimal disruption.”
“There’s a lot of uncertainty,” he said.
In October 2024, Denny announced its intention to close 150 of almost 1,500 locations across the country, the post reported. The chain eventually closed 88 locations in 2024.
