Photo / Peter Van Allen
The same spacious parking lot that allowed for a good customer base will give way to adequate space for a roundabout.
Updated: January 25, 2024
Former Denny's site will have new life, but its days as a Portland late-night stop are over
Photo / Peter Van Allen
The former Denny's restaurant in Portland will be demolished to make way for a traffic roundabout.
For many years, the Denny's restaurant in Portland's Libbytown neighborhood was a local landmark.
Denny's closed in September 2022. Now the ground it sits on will have a new purpose — but its days as a 24/7 food spot are over for good.
The Maine Department of Transportation acquired the property, at 1091 Congress St., in October, paying $2.355 million. Joe Malone of Malone Commercial Brokers brokered the deal.
The former Denny's structure will be torn down in the next 30 days, said Paul Merrill, a spokesman for the Maine DOT.
It plans to redevelop the site to improve traffic patterns and on/off ramps, starting as early as November 2026.
The roundabout
The DOT plan calls for installing a modern roundabout on the site, easing traffic flow off of Interstate 295, just off Exit 5A.
The Denny's site is in a "V" formed where Park Avenue splits off from Congress Street. It's a high-traffic area — prime real estate for a diner, as well as for a traffic circle.
Within a mile radius of the site are the Portland Transportation Center, Maine Medical Center, Hadlock Field, where the Double-A Portland Sea Dogs play, and the Expo Center, home of the Maine Celtics.
"Libbytown is a gateway to Portland's downtown peninsula, museums, outdoor festival grounds, sports complexes and entertainment venues. Streets and sidewalks in Libbytown connect to nearby schools, parks, hospitals, restaurants and grocery stores," a Maine DOT report says. "But as Portland grows and develops, the transportation infrastructure in Libbytown remains a significant challenge."
In addition to better access, the traffic work will improve safety and alleviate some of the flooding issues the neighborhood experiences.
Photo / Peter Van Allen
Denny's in Portland's Libbytown neighborhood closed in September 2022.
A short history of Denny's
Denny's Corp. (Nasdaq: DENN) was founded in 1953 in Lakewood, Calif., as Danny's Donuts, not Denny's. Today the company has 1,631 restaurants and is based in Spartanburg, S.C.
In Maine, Denny's continues to operate locations in Auburn, Augusta and Bangor.
While demolition of the Denny's in Portland is expected to take place this spring, construction on the roundabout is not expected to start until November 2026.
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