Red Robin is the latest restaurant chain feeling the squeeze of the economy and is making big changes to stay afloat.
Here is everything you need to know:
Up to 70 Locations Could Close
The Washington-born gourmet burger chain announced Wednesday that ongoing financial troubles have led to plans to potentially close 70 underperforming locations out of its 500 restaurants across the U.S. and Canada.
Financial Troubles
The company reported a $39.7 million net loss in the fourth quarter of fiscal 2024, nearly triple the $13.7 million loss from the same period in 2023. Revenue also dropped by $23.8 million, partly due to one fewer operating week compared to the previous year.
Are the Closures Immediate?
The plan isn’t immediate—these shutdowns will likely happen over the next several years as leases expire. The first wave of closures, affecting 10 to 15 locations, could begin in 2025.
The company says the decision is part of a broader effort to stabilize operations after struggling with rising costs and shifting consumer habits. “While our improvement has been substantial, we have not yet reached the potential of our iconic brand and expect to drive further traffic improvements in 2025,” CEO G.J. Hart said in a statement.
Selling Properties to Reduce Debt
Along with closing locations, Red Robin also announced plans to sell three owned properties in early 2025, which could possibly generate $5.8 million.
What’s Next for Red Robin?
According to Hart Red Robin is focused on “bringing guests back into our restaurants for moments of connection over craveable food that only Red Robin can provide” while also “gaining efficiency in our operations and delivering growth in restaurant and corporate-level profitability.”
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