REPORT: Denny’s could shutter nearly 100 restaurants

The long-term effects of the Biden administration continue to take a toll on the businesses in this country. 

Not only that, but chains like Denny’s are now dealing with a last-second directive by the Biden administration that will likely result in the chain shuttering as many as 90 restaurants this year.  

Inflation by the Numbers ``

For most of the last decade leading up to the Biden administration, Americans were spoiled when it came to inflation.  

Obama's average inflation rate was 1.46%. Under Trump, it was a bit higher, at 2.46%, but it was still very low, but then COVID hit.  

Under Biden, that rate soared to as high as 9.1%, but it was not all about COVID.  

Biden made Jimmy Carter-like decisions that impacted inflation, forcing the Fed to take some drastic measures to try to get it back under control. Biden’s average was 4.95%, and it took its toll on business owners.  

Kill the Chickens 

For the restaurant industry, a last-minute directive by the Biden administration has made eggs about as valuable as a brick of gold in terms of food supplies.  

Trump had promised to lower the price of groceries, but that was an unrealistic promise simply due to the fact it would take considerable time for any policies to impact these prices, with the main issue being transportation costs.  

That promise was made much harder to fulfill when more than 100 million chickens were ordered to be killed due to an outbreak of bird flu. 

That move created a massive shortage of eggs, driving prices through the roof, with Americans now seeing eggs approach $8 per dozen in some areas, even higher. Sadly, this is something that will continue for some time while the supply chain is built back up. 

Denny’s Closing Stores 

The reality for restaurants like Denny’s is the chain’s entire existence is about being able to put good meals on the table for a reasonable price, mostly due the fact they are using low-cost ingredients, like eggs.  

Denny’s sells many of its breakfast items for under $10, and with the cost of eggs now being so high, there is simply no way the chain can hit its food costs, which has resulted in the chain making a shocking announcement.  

The chain announced, “In any mature brand, when restaurants have been open that long, it is natural that trade areas can shift over time. Accelerating the closure of lower-volume restaurants will improve franchisee cash flow and allow them to reinvest into traffic-driving initiatives like our tested and proven remodel program.” 

Dems have already started to try to shift blame for this on Trump, claiming he broke a promise with the rise of egg prices. However, the reality is that this is a direct result of the bird flu that created this shortage. The question that really needs to be answered is whether the Biden administration overreacted or whether the killing of all those chickens was truly essential to limit the outbreak of the bird flu.