Additional Coverage:
- Red Robin Is Likely Closing 15 Stores in 2025 (Are You Losing One?) (financebuzz.com)
Red Robin Struggles to Stay Afloat in Current Economic Climate
Amid rising dining costs, many American families are cutting back on restaurant visits. This trend has hit the fast-casual dining sector particularly hard, with Red Robin the latest chain feeling the pinch. The company recently announced the closure of dozens of restaurants over the next five years.
Financial Troubles Prompt Closures
Red Robin’s decision to close restaurants follows a dismal financial performance. The company reported a net loss of $77.5 million for 2024, a significant jump from the $21.2 million loss in 2023. The fourth quarter of 2024 also saw a steep decline, with losses reaching $39.7 million compared to $13.7 million the previous year.
Closure Timeline and Locations
Red Robin plans to close approximately 70 underperforming locations over the next five years, primarily by allowing leases to expire. Fifteen closures are projected for 2025, with three company-owned locations slated for sale in the first quarter.
These sales are expected to generate approximately $5.8 million, which the company will use to pay down debt. One location in Easton, Ohio, has already closed, and four other central Ohio locations may be at risk.
The company also closed one location in the fourth quarter of 2024.
Red Robin Joins Growing List of Struggling Restaurants
Red Robin joins a growing list of restaurant chains facing financial difficulties. Several well-known brands, including Denny’s, Wendy’s, and Outback Steakhouse, are also closing locations. Others, like Tijuana Flats, Buca di Beppo, and TGI Fridays, have filed for bankruptcy.
From Humble Beginnings to Uncertain Future
The original Red Robin location opened in Seattle in 1926. After changing hands and names several times, it adopted the Red Robin moniker in 1969, reportedly inspired by a song frequently sung by then-owner Samuel Caston. Today, there are just under 500 Red Robin restaurants across 39 US states and one Canadian province.
Menu Innovations and Promotions Amidst Closures
Even as it closes locations, Red Robin is introducing new menu items and promotions. Basketball fans can now enjoy the Buzzer Beater Bacon Cheeseburger, available in “two-pointer” and “three-pointer” sizes.
The chain continues to offer its popular bottomless sides and drinks, including steak fries, Freckled Lemonade, and root beer floats. In 2023, Red Robin switched from flame-broiling to flat-top grilling for its burgers.
The company also offers promotional deals, such as discounted burger upgrades on Mondays and $10 cheeseburgers on Tuesdays. These efforts aim to enhance the dining experience and attract customers, ultimately helping the chain navigate its current financial challenges.
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- Red Robin Is Likely Closing 15 Stores in 2025 (Are You Losing One?) (financebuzz.com)