Denny’s, the iconic restaurant chain based in Spartanburg, South Carolina, is set to close 150 underperforming locations by the end of 2025. The closures come as part of a larger effort to address declining sales and shifting customer habits. The decision affects roughly 10% of Denny’s total restaurants.
What’s Happening: Denny’s, a brand that has been a fixture in family dining for over 70 years, is facing its fifth straight quarter of declining same-store sales. About half of the 150 closures will happen in 2024, with the rest following in 2025. The stores targeted for closure are those located in areas still struggling to recover from pandemic-era foot traffic shifts, or in outdated, less desirable real estate.
South Carolina Roots: Founded in 1953, Denny’s has been a proud part of South Carolina’s business landscape, growing from a local coffee shop to a nationwide chain. The company’s headquarters remain in Spartanburg, where it employs hundreds and plays a key role in the local economy. Despite the closures, Denny’s continues to be a cultural staple, especially in its home state, where many longtime patrons still see it as a community gathering spot.
Why It Matters: For South Carolina, the closure of Denny’s locations could mean not only job losses but also the disappearance of familiar neighborhood spots that have long been part of the local dining scene. More broadly, it highlights the challenges that family dining chains are facing as inflation pushes customers toward cheaper fast-food options and fast-casual competitors.
The Details:
• Restaurant inflation is currently outpacing grocery prices, making it harder for families to justify dining out.
• Competitors in the fast-casual sector, such as Chipotle, are pulling away Denny’s customers with quicker, more affordable offerings.
• Denny’s stock dropped by 18% recently, reflecting investor concern over the company’s ability to recover.
In Context: While Denny’s has worked to revamp its business by introducing delivery-only options and promoting its value menu, the core issue remains: how to draw back the in-person traffic that sustained its business for decades. The chain’s closures, especially in South Carolina, could leave gaps in local dining and challenge the brand’s hometown presence.
What’s Next: Denny’s will need to adapt quickly, both in South Carolina and across the country, to stay relevant in a shifting dining landscape. Its ability to innovate and compete with fast-casual chains will be key to maintaining its role as a beloved community diner.
