Denny’s has confirmed the closure of its restaurant located in Coddingtown Mall in Santa Rosa, California, just weeks after announcing a deal for its acquisition by a group of investors. A notice on the diner’s door directed patrons to a nearby Denny’s outlet that remains operational. Following this closure, the city now hosts only one remaining Denny’s location.
Details surrounding the abrupt closing have not been disclosed to customers. Earlier this month, Denny’s revealed it is set to be acquired by private equity firm TriArtisan Capital Advisors, investment company Treville Capital, and franchisee Yadav Enterprises in a transaction valued at $620 million, including debt. Under the agreement, shareholders will receive $6.25 per share in cash, amounting to a total of approximately $322 million.
Denny’s was established in 1953 under the name Danny’s Donuts in Lakewood, California. The chain, which evolved into Denny’s Coffee Shops by the end of the decade, began trading on the New York Stock Exchange in 1969. The restaurant has faced significant challenges, notably during the COVID-19 pandemic, which severely impacted sales. As normalcy returned, Denny’s struggled with shifting customer preferences and competition from newer breakfast chains emphasizing healthier options.
In the fall of 2022, Denny’s announced plans to close up to 150 of its lowest-performing locations, reflecting ongoing challenges in the restaurant industry. As of the second quarter of 2023, the chain operated 1,558 restaurants worldwide, including both Denny’s and Keke’s locations, the latter acquired in 2022.
Denny’s CEO Kelli Valade stated that the board believes the acquisition deal aligns with shareholder interests and represents a positive direction for the company. TriArtisan’s Co-Founder, Rhohit Manocha, described Denny’s as an emblematic element of the American experience, highlighting its strong franchise network and devoted customer base. He expressed enthusiasm about collaborating with Valade and the Denny’s team to foster long-term growth.
This deal, pending acceptance from Denny’s shareholders, is expected to finalize in the first quarter of 2026. Despite the hurdles currently faced by Denny’s and other popular dining chains, there remains optimism for revitalization and strategic development in the coming years.