Oct 22, 2024
New York (CNN)  Dennys is closing 150 restaurants over the next year, and the 71-year-old diner chain is mulling a major change to its 24/7 operating hours.Fifty locations are set to close by the end of 2024, while the remaining 100 will shutter in 2025, Dennys announced in an earnings call Tuesday. That amounts to a tenth of its restaurants, leaving 1,375 locations once completed. A specific list of closing restaurants werent immediately announced.Dennys is targeting underperforming restaurants that are weighing down the companys financial performance, according to Steve Dunn, Dennys executive vice president and chief global development officer. The affected locations are either too old to be remodeled or in areas that have become unprofitable.The chain, best known for never closing its doors, is also making a major concession with its franchisees over the requirement of remaining open 24/7. Since the pandemic, about a quarter of its restaurants have not returned to those around-the-clock hours, so Dennys is easing up on the requirement for a franchise to do so.Dennys joins a broader trend of restaurants slashing hours since the pandemic. Major shifts in customer behavior, including earlier dinner times and drinking less alcohol late into the evenings, have held back a return to pre-pandemic patterns. Higher labor and food costs have also led restaurants to close earlier.For Dennys, Dunn admitted that 24/7 operating hours are a contraction that happened for everyone and that less foot traffic during those off hours mean it didnt make sense for a restaurant to remain open.Other changes at Dennys include a slimmed-down menu, with the number of options whittled down to 46 from 97. The chain also noticed that cash-strapped adults were increasingly ordering off its kids menu to save money.Dennys (DENN) shares dropped 17% Tuesday after earnings missed analysts expectations. The stock is down 50% for the year.WATCH | WRTV's latest headlines Latest Headlines | October 22, 11am
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