Denny's makes an urgent decision after announcing massive closures in America

Denny's, the renowned American-style restaurant chain, is at the center of a strong transformation. The company, known for its classic breakfasts and 24-hour service, has recently surprised its customers. Its new strategy has caused divided opinions at a delicate time for the brand.

The company has announced the imminent closure of many of its establishments in the United States. This measure is part of an urgent plan to counteract the effects of the drop in sales recorded during the first quarter of 2025. Meanwhile, they have launched a special promotion to attract consumers and strengthen their presence in the locations that will remain open.

A Strategic Promotion for Difficult Times

Denny's launched a "buy one, get one for a dollar" offer on its popular Grand Slam and All-American Slam breakfasts. The promotion, valid from March 24 to May 9, is offered to customers dining at participating restaurants. The initiative arose as a direct response to the 3% loss in sales at locations with more than one year of operation, their worst figure in four years.

The results were quick to arrive. In April, nearly 70% of diners took advantage of this offer, which significantly boosted traffic in the restaurants. Currently, still between 4% and 5% of customers continue to opt for this promotional menu, proving its effectiveness, according to The Sun.

Kelli Valade, chief executive officer of the chain, stated that this type of promotion is essential for the public in times of economic uncertainty. Additionally, she highlighted the return of the low-price menu of $2, $4, $6, and $8, which returned last summer after a four-year pause, also generating a good reception.

Closures, Remodels, and Moderate Expectations

Despite the success of the promotions, Denny's has taken a decisive measure: the closure of 178 restaurants considered unprofitable. This decision seeks to relieve pressure on franchisees and redirect resources toward improvements that boost traffic and profitability. The company has also remodeled six locations recently, five of them company-owned, as part of its update plan.

Not all customers have reacted positively. Some customers have complained about added surcharges on egg dishes, a measure taken after the increase in prices of this product due to an avian flu outbreak. This policy was adopted shortly after its competitor Waffle House implemented a similar adjustment.

Regarding overall figures, Denny's reported operating income of $111.6 million in the first quarter, a slight increase compared to the previous period. Additionally, its sister brand, Keke's Breakfast Café, showed sales growth. Although the company faces a considerable debt of $276 million, it trusts that recent decisions will mark a new direction for its future.