Additional Coverage:
- Red Robin Is Likely Closing 15 Stores in 2025 (Are You Losing One?) (financebuzz.com)
Red Robin Faces Shake-Up: Dozens of Locations Slated for Closure Amidst Shifting Dining Habits
**Across the nation, American families are tightening their belts, and a significant portion of that belt-tightening is happening around the dinner table. With dining costs on the rise, many are cutting back on restaurant visits, impacting even the most beloved fast-casual chains.
Red Robin is one such establishment feeling the pinch, with dozens of its locations potentially closing their doors for good. **
The popular burger joint, known for its bottomless fries and Freckled Lemonade, is undertaking a strategic review of its operations in an effort to remain relevant in a turbulent financial landscape. This comes after the company reported a net loss of $77.5 million for 2024, a significant jump from the $21.2 million loss seen in the previous year. The fourth quarter of 2024 also saw a substantial increase in net losses, reaching $39.7 million compared to $13.7 million in the same period of 2023.
Despite these figures, a Red Robin spokesperson noted some positive trends, including a 3.4% increase in comparable sales and continued sequential traffic improvement in the fourth quarter. Furthermore, over 300 locations are reportedly performing well under the company’s “transformation efforts,” which could potentially mitigate the number of future closures. The company also reduced its debt by approximately $20 million in Q2 2025.
How Many Locations Are on the Chopping Block?
Red Robin is considering closing approximately 70 restaurant locations over the next five years. This number, however, is not set in stone and may be adjusted based on future performance.
The focus is on underperforming locations, with the plan to systematically allow leases to expire without renewal for a more organized exit. A comprehensive list of targeted locations has not yet been released.
When Will the Closures Occur?
Red Robin projects that 10-15 locations could shut down in 2025. During a May 29 earnings call, Todd Wilson, executive vice president and chief financial officer, announced that an additional eight company-owned locations are slated for closure in 2025. Three company-owned locations that closed in the first quarter upon sale are expected to generate around $5.8 million, which will be used to pay down debt.
Which Stores Have Already Closed?
The Red Robin in Easton, Ohio, located at 3977 Morse Crossing, closed its doors on March 16. The company also closed one location in the fourth quarter of 2024. In total, six company-owned restaurants and one franchise location have already ceased operations.
Red Robin’s Current Footprint
Wilson stated that there are currently 401 company-owned restaurants and 90 franchise locations. By the end of the year, this is expected to decrease to 393 company-owned restaurants. California, Washington, and Pennsylvania boast the highest concentration of Red Robin locations.
Not Alone: Other Chains Facing Challenges
Red Robin is not an isolated case in the challenging restaurant landscape. Many other well-known chains are also scaling back or facing bankruptcy. Denny’s, Wendy’s, and Outback Steakhouse have all reduced their footprints, while others like Buca di Beppo and TGI Fridays have filed for bankruptcy.
A Look Back: The History of Red Robin
The location that would eventually become the first Red Robin was initially advertised for rent in the Seattle Times in 1926 for a mere $30 per month. After several owners and name changes, it officially became Red Robin in 1969. Restaurant lore attributes the name to owner Samuel Caston, who reportedly sang “When the Red, Red Robin (Comes Bob, Bob, Bobbin’ Along)” while working.
What Will Customers Miss Most?
Red Robin is renowned for its bottomless sides, a beloved feature that includes its iconic steak fries, as well as kettle chips, sweet potato fries, garlic fries, broccoli, or salad. The chain also offers an array of bottomless drinks, extending beyond fountain sodas to include signature beverages like the Freckled Lemonade and root beer floats.
What’s New at Red Robin?
Despite the closures, Red Robin is implementing exciting changes to its existing locations. The chain is currently offering “The Big Yummm Burger Deal,” allowing customers to get a Red’s Double Tavern Burger, a Bottomless side, and a Bottomless drink starting at just $9.99.
Additionally, Red Robin has made a significant shift in its cooking methods. Previously known for “flame-broiled” burgers cooked on a conveyor belt, the company transitioned to a flat-top grill in 2023. This change, which has been rolled out to all locations, is believed by corporate leadership to deliver a higher-quality, more delicious flavor that will keep customers coming back for more.
The Bottom Line
Red Robin is also introducing a series of time-based promotions, including the new Triple Yummm Platter, which allows customers to choose three different appetizers. Taking advantage of these promotional offers can help customers save money while enjoying their favorite Red Robin meals, potentially aiding the chain in its efforts to avoid bankruptcy.
Read More About This Story:
- Red Robin Is Likely Closing 15 Stores in 2025 (Are You Losing One?) (financebuzz.com)