Denny’s closing stores in 2025: 150 locations slated to shutter as the diner resets its footprint

Denny’s is trimming its U.S. restaurant count, with a plan to close about 150 locations by the end of 2025 as part of a broader shake-up of the 24/7 diner brand. The move targets underperforming units and older real estate while the company leans into newer formats and a parallel push to grow its daytime-focused sister concept, Keke’s Breakfast Café. For guests, the practical takeaway is simple: check local listings before you drive, because some long-familiar sites won’t be there by next summer.

Why Denny’s is closing stores now

Executives have spent the past year sorting restaurants into clear buckets: healthy, fixable, and exit-ready. The closure list pulls mostly from the last two—units with sustained traffic declines, high remodel costs, lease conflicts, or labor gaps that make 24-hour operations impractical. Another ingredient: some markets saw post-pandemic late-night demand fail to return, leaving graveyard shifts unprofitable. In a few urban corridors, persistent safety and theft concerns tipped otherwise marginal locations into the red.

The strategy is classic portfolio optimization: shrink to a stronger core, redirect capital to remodels that move the needle, and add restaurants in trade areas where breakfast and brunch are growing faster than overnight dining.

How many Denny’s are affected—and where

The plan calls for roughly 150 U.S. closures through the 2024–2025 window—about a tenth of the domestic footprint. Closures are dispersed rather than concentrated, with a mix of suburban highway sites and older in-town units that need full rebuilds. Franchisees control most restaurants, so timing varies by operator and lease. Expect waves of notices rather than one big list, and expect a few reversals where landlords cut deals or a remodel pencils out.

Signals your local Denny’s may be at risk

• Repeated “temporary” overnight cutbacks that never restore 24-hour service

• Months-long staffing notices and abbreviated menus

• A remodel overdue by multiple design cycles with no permits posted

• A lease expiration approaching within the next 12–18 months

None of these are definitive, but together they often precede a decision.

What this means for employees and franchisees

Most affected locations are franchised. That means owners decide whether to relocate, sell, or close and redeploy staff to nearby units. In markets with multiple Denny’s, many employees can transfer; single-site towns face tougher choices. Corporate has urged operators to prioritize transfers and offer retention bonuses where feasible to stabilize neighboring stores that will absorb displaced traffic.

For franchisees, the upside is a system with higher average unit volumes and less capital tied up in low-return remodels. The near-term challenge is absorbing one-time exit costs and maintaining guest goodwill as signs come down.

What guests can expect: hours, menus, and alternatives

As the footprint changes, hours may stay shorter at some surviving restaurants, especially on weeknights. Late-night menus could be slimmed down to ensure speed and food costs remain in check. Guests who rely on third-party delivery should bookmark virtual brands tied to the diner’s kitchens; they typically track the same hours as the host restaurant and can reveal whether a unit is active before you head out.

If your local Denny’s is leaving, nearby Keke’s Breakfast Café locations may fill the daytime gap—brunch-tilted, sit-down service, but not 24/7. In some markets, franchisees are evaluating conversions of older Denny’s boxes into refreshed breakfast concepts rather than exiting a trade area entirely.

Timeline and what to watch next

• Now–Q1 2026: Closures continue in waves as leases unwind and sale/transfer talks finish.

• Remodel cadence: Remaining restaurants prioritize kitchen updates, booth/lighting refreshes, and drive-up pickup lanes aimed at digital orders.

• Menu tests: Expect regional trials focused on value breakfasts, shareable late-night snacks, and coffee upgrades to compete with fast-casual rivals.

• Staffing pivots: More units will operate on “24/7 when staffed” schedules—full hours on weekends, shorter windows midweek.

If you’re a regular: practical tips

• Check the app or call ahead for hours; don’t assume 24/7.

• Look for “last day” signage—closing restaurants often post a farewell note and suggest the nearest alternative.

• Save receipts from closing-week visits if you have rewards; points sometimes need manual credit at a nearby unit.

• Ask about transfers—your favorite servers and cooks may be moving to another location a few miles away.

Denny’s is closing about 150 U.S. restaurants by late 2025 to concentrate investment where demand is strongest and modernize the stores that remain. The brand isn’t disappearing; it’s pruning. For late-night diners, the landscape will feel thinner in some corridors, but for most guests the reset aims to deliver fewer, better locations—cleaner dining rooms, faster tickets, and menus tuned to when people actually eat now.