San Francisco’s last Denny’s restaurant has shuttered its doors, marking the end of its nearly quarter-century presence in the Union Square district, a once-bustling hub of the city’s downtown area. The closure, which occurred at the start of August, was confirmed by the franchise operator, Chris Haque, who lamented the unavoidable end of operations. “Operated until the last day that we could,” Haque stated, encapsulating the struggle faced by the business.
The challenges that led to the closure of this Denny’s location are emblematic of broader issues affecting business viability in urban centers. Haque highlighted several factors contributing to the restaurant’s downfall, including unchecked vandalism and a rampant issue with diners leaving without paying. “The cost of doing business is tremendous. There’s vandalism, and people come and eat and walk away, and there’s no one to stop them,” he explained, painting a grim picture of the operational difficulties.
The decline in convention traffic, a key source of customers for many businesses in the area, also played a significant role. The COVID-19 pandemic severely impacted the frequency and scale of conventions in San Francisco, with only a modest recovery observed in recent years. This downturn in visitor traffic has left many businesses struggling to maintain their pre-pandemic vitality.
Denny’s corporate office, while confirming the closure, refrained from delving into the specifics but expressed a general sentiment of regret over the necessity of such decisions. “We echo Chris Haque’s sentiments that Denny’s loves San Francisco and the Bay area, and closing a restaurant location is never an easy decision. Denny’s offers its heartfelt thanks to the team members and the local community for their love of the Denny’s brand; it has been a pleasure serving you,” the company stated.
Despite the closure in Union Square, Denny’s affirmed that its South San Francisco location remains operational, along with 40 other restaurants in the broader San Francisco/Oakland/San Jose area. This suggests a strategic contraction rather than a complete withdrawal from the market.
The broader implications of such closures are significant, reflecting a troubling trend for business operations in urban areas, particularly in the post-pandemic landscape. San Francisco Mayor London Breed has recognized these challenges, proposing initiatives aimed at revitalizing the downtown economy and restoring its former dynamism. However, the effectiveness of these measures remains to be seen as the city grapples with the evolving demands of urban business and commerce in a post-pandemic world.
