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Denny's, the popular diner chain known for its 24/7 service and extensive menu, has announced that it will be closing even more locations than originally planned.

The company revealed that up to 178 restaurants could shut down across the United States by the end of 2025, surpassing its initial closure goal of 150 locations.

According to Stephen Dunn, Denny's Executive Vice President and Chief Global Development Officer, several factors are driving the closures.

Many of the restaurants being shut down are too old to be renovated or simply aren't profitable. The company is focusing on locations with expiring lease contracts or outdated buildings. In fact, the stores set for closure have been operating for nearly 30 years on average.

Dunn explained that accelerating the closure of these underperforming restaurants will help improve cash flow for franchisees.

According to Merca, this will allow them to reinvest in initiatives that are expected to attract more customers, such as remodeling existing stores. "Some of these restaurants can be very old. So when you think of a 70-year-old-plus brand, you have a lot of restaurants that have been out there for a very long time," Dunn said in October.

Denny's Closing 178 Locations: Here's What You Need to Know

In 2024, Denny's began closing its underperforming locations, with 88 restaurants ceasing operations that year.

However, the total number of closures will exceed the original estimate. Robert Verostek, Denny's Chief Financial Officer, clarified that between 70 to 90 locations will close in 2025. When combined with the 88 closures from 2024, this brings the total to 178 restaurants, far more than initially planned.

While Denny's has not released a specific list of the locations that will close, the company stated that it typically does not provide advance notice of closures.

The affected stores will be revealed gradually throughout the year, so customers may not know until closer to when the closures take place.

Denny's currently operates 1,323 restaurants in the United States, with the highest number of locations in California, Texas, and Florida.

While these closures may be disappointing for some, the company is offsetting them with plans to open new restaurants, including both traditional Denny's and Keke's Breakfast Cafes, which Denny's acquired in 2022, USA Today said.

The company estimates that between 25 to 40 new locations will open to help balance the closures.

Denny's has remained a staple in American dining culture, offering breakfast, lunch, dinner, and late-night options around the clock. Its accessibility, whether in-store or through delivery, makes it a go-to for many customers.

Additionally, Denny's Rewards program provides loyal customers with discounts, birthday gifts, and the chance to earn points toward future meals.