Denny’s to Close 150 Locations Nationwide, Last Long Island Store’s Fate Uncertain
Denny’s has announced plans to shut down 150 of its restaurants nationwide, trimming about 10% of its total locations. On Long Island, the only remaining Denny’s is located at 255 Centereach Mall in Centereach, which, for now, remains open. The closures were discussed during the company’s earnings call on Tuesday.
When contacted, a staff member at the Centereach Denny’s said they were unaware of any potential closure and that the restaurant continues to operate as usual. Meanwhile, attempts to reach Denny’s corporate office for a comment were unsuccessful, with calls to the company’s media contact going unanswered.
Following the announcement, Denny’s stock dropped sharply, closing down nearly 18% at $5.47. The company plans to close 50 locations by the end of this year, with the remaining 100 expected to close in 2025, leaving around 1,375 restaurants in operation once the closures are complete.
The decision to shutter these locations stems from a strategic effort to revitalize the 71-year-old diner chain, which has seen a decline in same-store sales of 0.1% in the third quarter. According to executives, the underperforming locations—roughly 20% of the system—were dragging down the rest of the franchise. Many of these locations were deemed outdated or in markets that no longer fit Denny’s target demographic.
As part of its revival plan, Denny’s has launched its “Diner 2.0” initiative, a renovation program offering financial support to franchisees willing to update their restaurants. Franchisees who participate in the program will receive a $100,000 grant to help cover renovation costs, though they will also face a slightly increased royalty fee. Renovated locations, according to company data, have experienced a 6.4% boost in sales and a 6.5% increase in foot traffic.
In addition to modernizing its brick-and-mortar locations, Denny’s is also adapting to shifting consumer habits. The company reported that families are increasingly opting for smaller checks by ordering more kids’ meals. Moreover, Denny’s virtual brands—Burger Den, the Meltdown, and Banda Burritos—have collectively generated $77 million in sales, offering another avenue for growth.
Denny’s CEO, Kelli Valade, emphasized that the closures are necessary to strengthen the remaining stores and position the brand for a successful turnaround. She also noted that the traditional 24/7 operating hours may no longer be a priority, with about 25% of Denny’s locations choosing to reduce their hours.
For now, Long Island’s lone Denny’s in Centereach remains unaffected by the closures, though the future of the location remains uncertain as Denny’s implements its nationwide restructuring.
Photo: Google Maps.
