The man went into the restaurant at 1015 Blossom Hill Road at 4:39 a.m. and ordered everyone to leave, police spokesman Sgt. Jason Dwyer said.
Employees and customers left the Denny's, and officers responded and surrounded the restaurant, Dwyer said.
After contacting the man inside the restaurant, police were eventually able to convince him to surrender peacefully around 6 a.m., according to Dwyer.
The man, whose name is not being released, was taken into custody and will undergo a psychiatric evaluation, Dwyer said.
No one was injured during the standoff, he said.