After over seven decades as American families’ favorite diner, this beloved breakfast chain seems to be shrinking. Economic uncertainty and inflation have forced it to make difficult cuts.
In October 2024, Denny’s revealed plans to permanently shut down around 150 locations, following more than 80 closures earlier in the year. By the end of 2025, the breakfast chain expects to close another 70 to 90 restaurants, approximately 10% of its total footprint.
The downsizing comes as domestic same-restaurant sales fell 1.3% in the second quarter of fiscal 2025, continuing the troubling downward trend.
However, Denny’s previously faced similar challenges.
In 2010, during the aftermath of the Great Recession, the breakfast chain introduced its popular Value Menu, which not only attracted budget-conscious consumers but also helped rescue Denny’s from suffering the same fate as other restaurant chains that were forced to file for bankruptcy.
Image source: Justin Sullivan/Getty Images
Denny’s brings back popular deals and launches new menu items
Denny’s (DENN) is bringing back its popular Value Menu, launching a limited-time “5 Slams Starting at $5” promotion and reviving the insanely low-priced offerings that made it a household name in the breakfast restaurant industry.
The deals are available nationwide through October 28.
Denny’s “5 Slams Starting at $5” Value Menu Offerings
- Grand Slam Burrito: Bacon, sausage crumbles, scrambled eggs, crispy hash browns, and cheese, all wrapped in a warm flour tortilla, with a side of salsa.
- BLT&E Slamwich: Bacon, egg, lettuce, tomato, and mayo, all sandwiched between two slices of toasted sourdough and served with hash browns or fries.
- 2-Egg Breakfast Slam: Two eggs, hash browns, and white toast.
- Everyday Value Slam: Choice of two buttermilk pancakes, two slices of Brioche French Toast, or a biscuit & gravy, served with two eggs and two bacon strips or sausage links.
- Super Slam: Two buttermilk pancakes, two sausage links, two bacon strips, two eggs, and hash browns.
Related: Popular breakfast restaurant chain menu adds deal amid closures
Additionally, Denny’s is rolling out limited-time fall offerings, returning the fan-favorite Pumpkin Pecan Pancakes and two new menu items, including the Bourbon Bacon Sirloin Dinner and Chocolate Cinnamon Milkshake.
“Our guests are looking for great value and great taste, especially during the busy fall season,” said Denny’s Executive VP and Chief Brand Officer Ellie Doty in a press release. “With the return of our beloved pumpkin favorites, alongside our new ‘5 Slams Starting at $5’ menu and other limited-time offerings, we’re serving up the perfect combination of seasonal flavor, smart savings, and satisfying meals.”
The restaurant industry faces a breakfast crisis
Denny’s is not alone in this struggle. Rising food costs and reduced consumer spending are reshaping how Americans eat by skipping meals to save money.
According to the Bureau of Economic Analysis, food prices increased by nearly 25% from March 2020 to June 2024, while the cost of dining out rose approximately 26%.
A study by Credit Karma found that 80% of Americans have felt a significant increase in grocery costs within the last few years, and more than 27% admit they sometimes skip meals because of rising costs.
Even fast-food giant McDonald’s (MCD) has struggled with a decline in its U.S. market over the last few years.
“Morning now is a place that you’re seeing people are choosing either to skip breakfast or they’re choosing to eat at home for breakfast,” said McDonald’s CEO Chris Kempczinski during a recent earnings call.
Related: Major breakfast restaurant announces store closures, saddens fans
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