Latest news with #RobertVerostek
Miami Herald
04-04-2025
- Business
- Miami Herald
Iconic national restaurant chain closing dozens of locations
Unless you're in Las Vegas, it becomes fairly hard to eat in most American cities after 11 p.m. Things might stay open a little later in New York (the so-called "City that doesn't sleep" but once you get into the late-night hours, your choices get pretty slim. Most Domino's locations will deliver pizza until 2 a.m. That's great for college kids and people who made some bad decisions regarding alcohol, but it's not a restaurant experience. Related: After bankruptcy, another popular pizza chain closes restaurants Waffle House operates 24/7 in most markets, but that chain has generally been a southern tradition and not a national one. You can hit a McDonald's or Wendy's drive-through until 2 a.m. in many markets, but that's a lot like the Domino's option, where it fills your need to eat but does not offer the communal late-night dining experience. Don't miss the move: Subscribe to TheStreet's free daily newsletter Some cities have diners that stay open all night, but even in New York and New Jersey (the diner capitals of the world) that has become even more rare. It's expensive to keep a business open 24.7. Workers cost more at night, and, in many markets, there's just not that much demand. That demand has also been impacted by improving food quality at convenience store chains like WaWa and 7-Eleven, which are generally open late at night. For some restaurants that have built their business around the 24/7 model, this has caused significant problems. Denny's (DENN) has been making major changes to its business. That included opening limited new locations and closing nearly 100 locations in 2024. "Denny's opened four franchise restaurants during the quarter and 14 for the full year. And as part of our previously communicated strategy to accelerate the closure of lower-volume restaurants, Denny's closed 30 restaurants during the fourth quarter and 88 for the full year. These closures had an average unit volume of slightly under $1.1 million and were open on average for nearly 30 years," shared CFO Robert Verostek during the chain's fourth-quarter earnings call. The CFO tried to explain the closures as being at least partly due to shifting populations. Restaurant bankruptcies: Popular restaurant and bar chain files for Chapter 11 bankruptcyPopular athletic shoe chain files for Chapter 11 bankruptcyAward-winning cosmetics brand files for Chapter 11 bankruptcy "In any mature brand, when restaurants have been open that long, it is natural that trade areas can shift over time. Accelerating the closure of lower-volume restaurants will improve franchisee cash flow and allow them to reinvest into traffic-driving initiatives like our tested and proven remodel program," he added. The problem is that Denny's woes go beyond just closing some older locations. Denny's closures have not stopped and about 75 more are planned in 2025. The chain, however, has struggled, but it's not in a dire position. In its full 2024 fiscal year, the chain saw operating revenue drop to $452.3 million compared to $463.9 million for the prior year. It also saw same-store sales drop by 0.2% while its sister chain, the breakfast and lunch restaurant, Keke's, dropped by 1.7%. The chain still made a profit for the year. "Adjusted net income and adjusted net income per share were $28.6 million and $0.54, respectively," according to its earnings release. Denny's CEO Kelli Valade knows the company needs to keep shrinking to get healthier. The chains plans another 75 or so closings in 2025. "We believe this is absolutely the right thing to do to make our system stronger," she said during Denny's investor's day. Related: Another iconic restaurant chain files for Chapter 11 bankruptcy The chain has also allowed some locations to make a once unthinkable change. About 25% of Denny's locations have dropped being open 24/7. In some cases, that means closing during overnight hours during the week, but keeping them on weekends. In other, it has simply decided to close and not operate during late-night hours. That's a change from the company's original post-pandemic goal of returning all Denny's locations to 24/7 operation. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
25-02-2025
- Business
- Yahoo
Denny's the latest chain to add egg surcharge in face of nationwide shortage. Florida info
Thanks to the nationwide egg shortage, it may cost you a little more for that Grand Slam. Denny's announced Tuesday that some locations will be adding a temporary surcharge to every meal that includes eggs. The company did not list which of its over 1,300 locations would add the price hike, as it told USA TODAY in an email that the decision would be made "market-by-market, and restaurant-by-restaurant due to the regional impacts of the egg shortage." The price and availability of eggs have shot up in recent years due to an outbreak of bird flu causing farmers to have to destroy eggs and chickens, USA TODAY reported. Denny's, the 24-hour restaurant chain famous for its breakfast combos and comfort food, said it remains "committed to providing customers with delicious meals they love at the value they expect," and will continue to offer its $2 $4 $6 $8 value menu. The news comes just over a week after America's Diner announced more location closings, adding up to 178 shuttered Denny's around the country. Denny's competitor Waffle House was the first national chain to add egg surcharges, announcing the first week of February an extra 50-cent cost per egg to all menu items. "Consumers and restaurants are being forced to make difficult decisions," the company said in a statement. "Rather than increasing prices across the menu, this is a temporary targeted surcharge tied to the unprecedented rise in egg prices." Cracker Barrel, however, said in a statement earlier this month that they would not be charing extra for eggs because "there's nothing hospitable about that." Local restaurants are also facing the economic realities of the cost of one of their main ingredients increasing more than 65% since 2022, with an expected increase of about 20% this year according to the Department of Agriculture's price outlook. Some stores like Trader Joe's and Costco began limiting egg purchases this month. Some of them are just old buildings, Denny's executives said. Others have expiring leases. Denny's announced plans in October last year to close 150 lower-performing stores by the end of 2025, and chief financial officer Robert Verostek told investors in an earnings call this month the company planned to close between 70 and 90 more locations this year. Verostek also mentioned other factors, including widespread disasters in recent years such as the California wildfires and intense snowstorms, and concerns over tariffs. All together, Denny's plans to close down as many as 178 locations by the end of 2025. The company also announced it plans to open between 25 and 40 new restaurants in 2025, About half will be traditional Denny's restaurants and the rest will be Keke's Breakfast Cafes, which Denny's acquired in 2022. Denny's has not released a list of the targeted locations. In a statement to USA TODAY, Denny's said it "does not provide advance notice of closures" and instead works "closely with our owners and teams when a restaurant unfortunately has to close." As of Monday, Feb. 17, the Denny's website lists 115 Denny's locations in 78 Florida cities. That puts us third behind California (354) and Texas (195). There are 1,323 Denny's locations in the United States. As of this time last year, according to an archived copy of the page, there were 123. One new location opened in Naples and nine locations are no longer listed, showing a net loss of eight Florida locations so far. The Denny's locations no longer listed are: Fort Myers: 8031 Summerlin Center Road Key Largo: 97630 Overseas Highway Lake Wales: 4541 Macey Lane Largo: 940 Missouri Ave. Merritt Island: 75 E. Merritt Island Causeway Miami: 15235 SW 137th Ave. Palm Coast: 7 Kings Highway Port Charlotte: 1340 Tamiami Trail Winter Park: 2684 Lee Road A new Denny's opened in Florida last year in Naples at 3871 Tamiami Trail East. This article originally appeared on The Daytona Beach News-Journal: Denny's joins Waffle House in charging extra for eggs
USA Today
14-02-2025
- Business
- USA Today
Denny's closing more restaurants: Over 150 locations impacted by wave of closures
Hear this story Denny's announced this week it is closing more locations than originally planned. Back in October, the diner chain's leadership announced plans to close 150 lower-performing stores by the end of 2025, starting with 50 closures in 2024. However, in a Wednesday investors call, chief financial officer Robert Verostek said 70 to 90 would shutter in 2025. This, paired with the 88 he told investors already went dark in 2024, equates to as many as 38 additional store closures from the original October announcement. Some of these closures are related to expiring leases or aging buildings, leadership said. In a statement issued last year, Denny's executive vice president and chief global development officer Stephen Dunn said the locations the company plans to shutter are often too old to be remodeled or are not turning a profit. "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. Need a break? Play the USA TODAY Daily Crossword Puzzle. In Wednesday's meeting, Verostek said closing stores were open for an average of nearly 30 years. "In any mature brand, when restaurants have been open that long, it is natural that trade areas can shift over time," he said. "Accelerating the closure of lower-volume restaurants will improve franchisee cash flow and allow them to reinvest into traffic-driving initiatives like our tested and proven remodel program," he continued. How many Denny's locations are closing? While Denny's has yet to release a list of closing locations, it plans to shutter up to 178 restaurants nationwide in 2025, according to information given in the investor meetings. The company plans to offset the closures with about 25 to 40 openings, though roughly half of these will be traditional Denny's restaurants, while the other half will be Keke's Breakfast Cafes, which Denny's acquired in 2022. In a statement to USA TODAY Friday, Denny's said it "does not provide advance notice of closures" and instead works "closely with our owners and teams when a restaurant unfortunately has to close." The Denny's website lists 1,323 U.S. locations. California, Florida and Texas have a large concentration of stores. Contributing: Bonnie Bolden, USA TODAY Network
