A 30-unit Denny’s franchisee filed for bankruptcy, extending a series of financial troubles for restaurateur Eduardo Diaz that’s affected his operations across several major chains.
EYM Diner of DFW and EYM Diner of Florida, entities based in Texas and Florida, are the latest businesses connected to Diaz to seek bankruptcy protection. Since 2024, affiliated entities have filed for bankruptcy involving Pizza Hut, KFC, and Panera restaurants, resulting in more than 100 closures across those brands.
The breakfast chain is now working with existing franchise partners and creditors to transfer as many affected restaurants as possible to new operators. Denny’s says several locations are financially viable, and franchisees within its system have expressed interest in taking them over.
“We have spent the past two years working side by side with Mr. Diaz to support the sale of his Denny’s restaurants; that commitment continues. There are viable restaurants in this group, and franchise partners within our system are willing to step in to help secure their future,” Mark Burgess, senior vice president and chief development officer of Denny’s, said in a statement.
The company’s involvement predates the filings. According to Burgess, Denny’s has spent two years assisting Diaz with efforts to sell his restaurants, and that work will continue through the bankruptcy proceedings.
The goal is to preserve operations at locations that can succeed under different ownership, protecting jobs and maintaining service for customers. Any ownership transfers would need to proceed through the applicable bankruptcy processes and involve coordination with creditors. Denny’s has not announced any completed transactions.
“We are working with those partners and other creditors through the necessary processes to transition operations of as many impacted restaurants as possible to experienced operators in our system,” Burgess said. “For the team members whose livelihoods depend on these restaurants and the guests who count on them, continuity matters. That is where our attention and effort remain.”
The latest filings add to a difficult stretch for Diaz’s restaurant businesses, which have experienced financial disputes, lawsuits, bankruptcies, and closures across multiple brands.
One of the largest cases involved EYM Pizza, which filed for bankruptcy in July 2024 after a legal dispute with Pizza Hut. The franchisee previously operated approximately 140 Pizza Hut restaurants across several states. Pizza Hut sued the operator over alleged contractual violations, unpaid fees, and poor restaurant performance. The bankruptcy ultimately resulted in the sale of 77 Pizza Hut restaurants to six buyers, with approximately 60 other locations closing permanently.
Similar difficulties affected EYM Café, Diaz’s former Panera business in the Houston area. The operator, which once controlled 15 bakery-cafés, filed for bankruptcy after Panera terminated its franchise agreements over alleged violations involving royalty payments, food safety standards, and unpaid vendor invoices.
EYM Chicken, the group’s KFC business, filed for bankruptcy in 2025 and shuttered dozens of restaurants. In 2023, EYM King of Michigan shuttered all 26 of its Burger King restaurants in the state following a contractual dispute.
The latest bankruptcy also arrives as Denny’s works to improve restaurant profitability through its multiyear Project Grand Slam initiative. The strategy targets average unit volumes of $2.5 million, compared with approximately $2 million previously, through restaurant remodels, operational improvements, menu innovation, technology, and additional sales channels.
Project Grand Slam also calls for improving lower-performing restaurants through better staffing, repairs, maintenance, and operational standards. Additional initiatives include an updated loyalty app, value-focused menu offerings, and beverage innovation.
Denny’s is pursuing those initiatives under new ownership. In January, TriArtisan Capital Advisors, Treville Capital Group, and Yadav Enterprises completed their acquisition of Denny’s Corporation, which also owns Keke’s Breakfast Cafe.
