Your favorite Red Robin location might not be around much longer. The casual dining chain, known for its gourmet burgers and family-friendly atmosphere, has announced plans to potentially shutter up to 70 restaurants over the next five years. With financial pressures mounting, Red Robin is making tough cuts in an effort to bounce back stronger. But what led to this drastic decision, and how will it impact the brand’s future? Below is everything we know about Red Robin’s strategic plan.
Financial woes push Red Robin to consider closing underperforming sites
Red Robin has announced plans to potentially shutter around 70 underperforming restaurants as part of a strategic review. According to a February earnings release, the company is assessing alternatives for these locations, including closures once their leases expire. Last year, Red Robin closed one location after its lease expired.
G.J. Hart, Red Robin’s president and CEO, stated that most of the closures are expected to take place over the next five years. In 2025 alone, the chain anticipates shutting down between 10 and 15 locations. The move aims to streamline operations, strengthen the company’s portfolio, and reallocate funds toward reinvestment or debt repayment.
The decision follows a challenging financial year for Red Robin. In 2024, the company reported total revenues of $1.25 billion, reflecting a $54.5 million decline from 2023. Additionally, net losses surged to $77.5 million, a sharp increase from the $21.2 million loss recorded the previous year.
Is this the beginning of the end for Red Robin?
Despite facing financial setbacks in 2024, Red Robin’s more than 300 company-owned locations continue to show resilience, with sales growth reported across the chain. As of the end of the 2024 fiscal year (December 29th, 2024), Red Robin operated 498 restaurants, including 407 company-owned locations and 91 franchised units.
“While financial results for 2024 fell well below our original expectations, we’ve made substantial improvements to the guest experience and believe we still have a significant opportunity ahead of us to reach the full potential of our iconic brand,” said Hart.
As the company works toward a turnaround, Hart emphasized a renewed focus on attracting guests with “craveable food,” optimizing operational efficiency, and driving profitability at both the restaurant and corporate levels. Throughout 2025, the brand plans to introduce new menu items, limited-time promotions, and expanded salad options to help boost customer engagement.
“2025 is off to a good start with the comparable restaurant revenue momentum we had exiting the fourth quarter, continuing through the first eight weeks of the first quarter,” Hart noted. “With the strategy we have in place, we believe we are well positioned to deliver significant value to our guests and shareholders alike.”
It’s worth noting that Red Robin isn’t alone in making tough decisions to shutter underperforming locations. Other major restaurant chains, including Denny’s and Wendy’s, have also closed struggling stores to strengthen their businesses.
Source: USA Today