The past few years have not been especially kind to the restaurant business. The pandemic had an impact, as does the volatile economy. But some chains are doing everything they can to attract new customers and shore up their brand. Take Denny's, for example, According to The Takeout, the casual breakfast eatery shuttered more than 100 of its sites that were doing poorly.
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That did not bode well for Denny's, Also, according to CBS News, some consumers switched to places featuring "healthier" morning meal selections like First Watch or preferred the convenience of Uber Eats. Per the outlet, however, the chain just brokered a $620 million deal, wherein it will be sold to private investors." Its newly-minted owners are TriArtisan Capital Advisors, Yadav Enterprises, and Treville Capital.
Will the Sale Give Denny's the Boost It Needs?
That remains unclear. At this point, no one knows what moves the new owners will make. The outlet suggests that some options might be to close some Denny's restaurants or have fewer dining choices on the menu.
The Cautionary Tale of Red Lobster
What happened to Red Lobster eleven years ago could give Denny's new owners pause. The outlet states that Red Lobster's owners chose to "asset strip." Per The Takeout, "...[T]he investors sold the land on which some 500 restaurants sat, and any locations that couldn't afford to lease it back again were forced to close." Red Lobster never went under, but "has struggled since the sale."
Optimism About the Results of the Sale
So far, so good, it seems. Per CBS News via a statement, "Denny's is an iconic piece of the American dream, with a renowned brand, a strong franchise base and loyal customers," said Tri Artisan's Rohit Manocha.
Kelli Valade, the CEO of Denny's, expressed her opinion that "Denny's board believed the deal announced Monday was in the best interest of shareholders and the best path forward for the company," in the words of CBS News.
The first Denny's opened its doors in 1953 as Danny's Donuts in Lakewood, California. Today, "America's diner" seems to be starting a brand new chapter in its long history.
