In another blow to the American middle class, Denny’s—the iconic budget-friendly chain known for its hearty, no-frills meals—is slimming down in more ways than one. Faced with rising costs and dwindling customer spending in Biden’s economy, Denny’s announced on Tuesday that it will close 150 underperforming locations and dramatically cut back on its 24/7 operations. The move signals a shift that many everyday Americans are feeling: dining out, even at affordable chains like Denny’s, is becoming a luxury fewer families can afford.
The Spartanburg, South Carolina-based chain plans to shutter 50 of its nearly 1,500 locations by the end of this year, with another 100 on the chopping block by 2025. According to Denny’s executive vice president, Steve Dunn, these closures will target restaurants that are “either too old to be remodeled or in areas that have become unprofitable.” Translation? Denny’s is being forced to abandon communities where economic hardship has made it impossible to keep the doors open. But where is the outrage?
What’s worse, the once-iconic 24/7 service that Denny’s was known for will also be scaled back. Franchisees can no longer afford to stay open around the clock, with some locations already having dropped those hours after the pandemic. It’s another sign of the times as small businesses—whether franchise-owned or independently operated—struggle to cope with rising wages, inflation, and the dwindling number of customers.
As Denny’s grapples with financial losses, the chain’s stock took a nosedive, plummeting 17.6% to $5.47 on Tuesday. Denny’s, like many other restaurant chains, is feeling the heat as inflation continues to bite into the wallets of regular Americans. Steve Dunn pointed out that customers are turning to even cheaper options, such as ordering from the kids’ menu just to save a few bucks. In response, Denny’s will cut its sprawling menu in half, slimming down from 97 items to 46.
If you think this is just a corporate problem, think again. Denny’s shrinking menu and closing locations reflect the grim reality for millions of American families under Biden’s administration. Inflation isn’t just about the cost of gasoline and groceries—it’s hitting every corner of our lives, including where we can afford to eat out. A recent Reddit post summed up the frustration many diners are feeling: an $18 Lumberjack Slam—once a symbol of Denny’s unbeatable value—was derided as “dumbflation,” as the price hikes make what was once a modest meal feel overpriced.
And let’s not forget, this isn’t just about Denny’s cutting corners. The last Denny’s in San Francisco, located near Union Square, shut down in August, citing a string of issues, including rampant “dine-and-dashers” and the shift to remote work in the tech sector. Owner Chris Haque lamented the loss of revenue from business conventions that once kept his doors open. These aren’t isolated problems—it’s a nationwide trend in cities crippled by crime, poor policy decisions, and lingering effects of the COVID-19 lockdowns.
As Denny’s scales back, one thing becomes clear: the American dream of affordable dining is getting harder to come by. What was once a staple for hardworking families is now another casualty of an economy that is failing the people it should be serving.
