San Francisco has lost its last remaining Denny’s restaurant, located in the bustling Union Square area, with the eatery having closed its doors at the beginning of August 2024.

The Denny's closure was influenced by several challenges, including vandalism, an increase in dine-and-dash incidents, and a decline in convention traffic brought on by the COVID-19 pandemic, marking the sad end of an era for the restaurant, as Fox Business reports.

The franchised Denny's location in Union Square had been a part of San Francisco's dining landscape for decades. However, the operators faced mounting difficulties that ultimately led to the decision to shut down.

According to reports, vandalism and the rising trend of dining and dashing -- a phenomenon in which customers eat and leave without paying -- were significant issues that strained the business.

Challenges Pile Up for Union Square Location

In addition to the direct impacts of vandalism and unpaid meals, the restaurant also struggled with reduced foot traffic in the area. Union Square, a once-thriving hub for tourists and locals alike, has seen a decline in visitors, particularly after the COVID-19 pandemic forced many companies to transition to remote work.

Another critical factor contributing to the restaurant's decline was the decrease in convention activity in San Francisco.

Before the pandemic, conventions brought a steady stream of visitors to the city, many of whom frequented local businesses, including the Denny's in Union Square. However, the number of events held at the Moscone Center, a key venue for conventions, dropped significantly during the pandemic.

Decline in Convention Traffic Worsens Financial Struggles

In 2022, the Moscone Center hosted just 33 events, a significant drop compared to pre-pandemic numbers. Although the number of events slightly increased to 34 in 2023, it was not enough to offset the financial strain on the restaurant. The lack of convention traffic was a major blow to the business, which had relied heavily on these events to drive customer flow.

Chris Haque, who was involved in operating the Denny's, emphasized the difficulties they faced. "The cost of doing business is tremendous," Haque stated, highlighting the various challenges, including vandalism and dine-and-dash incidents, that made it increasingly difficult to keep the restaurant running.

Denny’s Expresses Gratitude to the Community

The closure was confirmed by Denny’s to Fox Business, though the company declined to provide specific details regarding the decision. In a statement, Denny’s acknowledged the operator's sentiments and expressed appreciation for the support from the local community and the dedicated team members who had worked at the restaurant over the years.

"Denny’s loves San Francisco and the Bay area," the company said in its official statement. "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."

While the Union Square location is no longer in operation, Denny’s was quick to note that the chain is still present in the Bay Area. A location in south San Francisco remains open, along with approximately 40 other Denny’s restaurants in the San Francisco/Oakland/San Jose market.

Pandemic Aftershocks Continue to Impact Union Square

Union Square itself has been one of the areas hardest hit by the pandemic. The shift to remote work has resulted in fewer people visiting the downtown area, leading to a ripple effect on local businesses.

Many companies that once populated the area have downsized or moved to a remote-first model, further reducing foot traffic and impacting the viability of retail and dining establishments.

For a restaurant like Denny’s, which depends on a steady stream of both local patrons and visitors, these changes proved too much to overcome.

The closure of the Union Square Denny's is emblematic of the broader challenges facing businesses in the area as they navigate a post-pandemic landscape that looks very different from the bustling pre-2020 era.

Conclusion: A Loss for Union Square and Beyond

The closure of San Francisco's last Denny’s marks the end of a significant chapter in the city’s dining history. The Union Square restaurant had served the community for nearly 25 years, but the challenges brought on by vandalism, dining and dashing, and a decrease in convention traffic, exacerbated by the COVID-19 pandemic, led to its demise.

Denny's expressed its gratitude to the local community and confirmed that while the Union Square location is now closed, other locations in the Bay Area remain operational. As Union Square continues to recover from the aftershocks of the pandemic, the loss of this Denny's is a reminder of the ongoing difficulties facing businesses in the area.