Denny's is pushing an aggressive expansion and rebranding plan it calls "Project Grand Slam", but the effort comes only after the iconic diner chain shed roughly 155 locations in two years, including five restaurants shuttered by a bankrupt franchisee in Minnesota and Wisconsin.
The franchisee behind those five closures, M15 Inc., filed for Chapter 7 bankruptcy, the kind of filing that means liquidation, not reorganization. The company accumulated so much debt it could no longer make payroll or buy supplies, according to a report detailing the chain's recent struggles and corporate pivot. Four of the shuttered locations sat in Minnesota; the fifth was in Wisconsin. Specific cities were not disclosed.
Manny Trewn, a representative for M15 Inc., acknowledged the pain behind the decision.
"We are deeply saddened to have made the difficult decision to close five Denny's restaurants in Minnesota and Wisconsin."
Trewn added that he hoped the locations would "have the opportunity to reopen under new ownership and continue serving their communities as Denny's restaurants." Whether anyone has stepped forward to take them over remains unclear.
The closures are part of a larger contraction. Since 2024, Denny's has closed approximately 155 stores across its system as part of an effort to shed underperforming units. The chain currently operates 1,321 locations worldwide, meaning more than one in ten restaurants on its books two years ago is now gone.
In November 2025, a trio of investors, TriArtisan Capital Advisors, Treville Capital Group, and Yadav Enterprises, Inc., took Denny's private in a deal valued at $620 million. Rohit Manocha, TriArtisan's co-founder and managing director, framed the acquisition in aspirational terms.
"Denny's is an iconic piece of the American dream, with a renowned brand, a strong franchise base and loyal customers."
That kind of language is familiar to anyone who follows private equity in the restaurant industry. Investors buy a recognizable name, talk about unlocking value, and then restructure. Sometimes it works. Sometimes it doesn't. California Pizza Kitchen's co-founder recently blamed private equity for driving that chain into bankruptcy, a cautionary tale that hangs over every deal like this one.
Fasika Melaku, Denny's chief people, enterprise communications, and social impact officer, described the move to go private as a chance to rebuild without the pressure of quarterly earnings calls.
"They saw an opportunity with this iconic brand to move forward in ways that were maybe hampered after COVID, and so going private gave us an opportunity to redesign our organizational structure to be very focused on what we believe will add value."
Denny's corporate leadership is now banking on a plan called Project Grand Slam. The initiative calls for remodeling up to 350 existing locations, opening 20 new restaurants annually through 2027, and rolling out what the company describes as its most extensive menu overhaul in more than a decade.
New items are currently being tested at 40 locations, with a systemwide launch planned for next spring. Melaku did not hold back enthusiasm for the food pipeline.
"We have more food designed that will be introduced to our system than I have seen in the last 12 years."
She rattled off specifics: new burgers, new sauces, new french fries, and, in a nod to the chain's breakfast identity, pancakes available at dinner. "And if you want to mix, we've got that," she said.
The franchise restaurant sector is littered with similar turnaround promises. Popeyes has watched franchise closures mount after bankruptcy auctions left dozens of locations without buyers. The question for Denny's is whether new french fries and remodeled dining rooms can reverse a trend that has already erased more than 150 stores.
Beyond the menu refresh, Denny's is pushing into workplace catering through a partnership with ezCater, a food technology platform. The company aims to have nearly 1,000 Denny's locations participating in the catering program by the end of the month, a rapid rollout that would cover roughly three-quarters of the chain's current footprint.
Cindy Klein Roche, ezCater's chief growth officer, pointed to the chain's breakfast strength as a natural fit.
"Breakfast is the most used search filter on ezCater, making Denny's a sure favorite for workplace orderers nationwide."
Catering revenue could provide a new income stream for franchise operators struggling with thin margins. But catering requires consistent food quality, reliable staffing, and on-time delivery, exactly the operational basics that franchisees like M15 Inc. could not maintain. A chain that lost locations because operators couldn't afford to buy supplies now needs those same operators to handle corporate lunch orders on schedule.
The broader casual dining industry continues to contract. Applebee's recently closed its Missoula, Montana, restaurant as part of a nationwide pattern of sit-down chain closures. Franchisee bankruptcies have hit chains of every size. A Moe's Southwest Grill franchisee went bankrupt and shuttered 16 locations across three states, underscoring how franchise operators, not just corporate parents, bear the heaviest burden when costs outrun revenue.
When asked about the store losses, Melaku did not dodge the question entirely. "Yes, closures did happen. It's very unfortunate," she said. But her message moved quickly to optimism about the brand's direction under private ownership and the new menu rollout.
That pivot is worth noting. A company that has closed 155 locations in roughly two years is now promising to open 20 new ones annually and remodel 350 more. The math only works if the remaining franchise operators are financially stable enough to invest in renovations, and if new franchisees can be recruited to replace the ones who went under.
Some chains facing similar pressures have chosen to rethink their entire format. Golden Corral is betting its future on smaller restaurants, travel plazas, and college campuses rather than trying to fill the same large dining rooms that no longer draw enough traffic. Denny's, by contrast, appears committed to the traditional diner model, just with better burgers and new fries.
Chapter 7 bankruptcy, the kind M15 Inc. filed, does not allow a business to restructure and try again. It means the doors close and the assets are sold to pay creditors. For the workers at those five locations in Minnesota and Wisconsin, the corporate talk about Project Grand Slam and catering partnerships means nothing unless someone actually reopens those restaurants and hires them back.
Denny's has a recognized name and a loyal customer base. Nobody disputes that. But recognized names go bankrupt every year in the restaurant business, and loyal customers cannot eat at a location that no longer exists. The new owners paid $620 million for the brand. Whether they paid for a turnaround or a slow decline dressed up in new sauces is a question the next two years will answer.
Grand Slam is a fitting name for the plan. In baseball, it clears the bases. In a diner booth, it fills the plate. At 155 closures and counting, Denny's better hope this one lands.