For decades, Denny’s was the iconic U.S. diner destination — the go-to spot for cheap coffee, late-night meals and highway-side comfort.
But that’s all changed in the past few years. While the helpings are still generous, the once-ubiquitous chain has been shrinking as Denny’s struggles with rising menu prices, declining customer traffic and a wave of restaurant closures.
Now Denny’s is being sold to a consortium of private-equity and franchise investors in a $620-million deal that will take the brand private (1).
Can the chain survive the transition? Here’s what Denny’s is up against and why the chain believes going private is its last best hope.
Denny’s business plunged during the COVID-19 pandemic (2) as many customers turned to takeout and delivery and younger consumers opted for faster and trendier breakfast options.
The chain has yet to recover. By the third quarter of 2025, sales at Denny’s locations open at least a year were down nearly 2.9% (3).
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The company acknowledged it had shuttered dozens of underperforming stores and planned to close 150 more (4) — a significant contraction for a chain that once seemed impossible to miss along U.S. highways.
At the same time, the prices in Denny’s menu reflect higher food costs. A viral New York Post story highlighted a subreddit post on the price of a Denny’s Lumberjack Slam, which soared from $5.99 a decade ago to $17.99 (5).
“We used to have old people come in all the time for two coffees and two Grand Slams and would leave with under a $10 bill,” one former Denny’s employee wrote.
Now, guests are walking out with $70 bills — hardly the price point that defined Denny’s for generations.
So can going private save the chain? Denny’s executives insist it will provide the capital needed to accelerate remodeling efforts and improve customer experience for a turnaround.
That’s because the consortium buying the enterprise — TriArtisan Capital Advisors, Treville Capital and Yadav Enterprises, a major Denny’s franchisee — valued Denny’s at a premium.
Denny’s leaders add that the investors also bring experience in the casual dining sector. TriArtisan owns P.F. Chang’s China Bistro chain and previously held stakes in TGI Fridays chain and Hooters of America.
But some observers aren’t convinced. Reaction to the sale was swift and overwhelmingly grim on Reddit (6).
Several posters warned that private equity ownership often results in store closures, asset sales and aggressive cost-cutting that can hollow out iconic brands.
“Bye Denny’s!” one Redditor wrote.
Despite the pessimism, Denny’s isn’t standing still. The company has been testing a series of value promotions aimed at customers who feel priced out.
And there are signs the strategy is paying off. Denny’s “Four Slams Under $10” campaign drove record-high transactions earlier this year, and the chain has also experimented with buy-one-get-one-for-$1 deals to lure back lapsed diners.
It’s also investing in physical upgrades.
Thirty restaurants have been remodelled so far, with a much broader revamp planned for 2026. Early results look promising: renovated restaurants show higher guest satisfaction scores and more substantial returns, according to executives.
Denny’s also continues to expand: the company is opening new units and integrating the Keke’s Breakfast Cafe brand it acquired in 2022 (7).
Whether these efforts will be enough is unclear.
Denny’s is entering private-equity ownership at a moment when inflation, higher wages and shifting dining habits have already reshaped the entire casual dining landscape.
Still, the chain has enormous brand recognition, a loyal older customer base and decades of cultural familiarity working in its favor.
For longtime fans frustrated by sticker shock or inconsistent quality, Denny’s recent deals — especially those available through the app and loyalty program — may provide a reason to return.
Whether that’s enough to pull the chain out of its doldrums may soon depend on just how aggressive or supportive its new owners plan to be.
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AP News (1); Providence Journal (2); Global News Wire (3); Restaurant Dive (4); New York Post (5); Reddit (6); Restaurant Business (7)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
