This Iconic Burger Chain Could Be Closing Dozens Of Locations

Despite 2023 plans to reinvigorate Red Robin, the burger chain appears to be facing some mounting problems. According to a recent press release, Red Robin experienced a dour fourth financial quarter in 2024. Along with a net loss of $39.7 million, the chain shuttered one location and may close a lot more in the coming months. About 70 underperforming locations are currently under assessment, and these locations are ultimately to blame for a hefty chunk of the company's overall net loss, totaling $32.4 million due to low sales and high operating costs. 

The first Red Robin location was opened in 1969, and since that time, the chain has established a reputation for serving up juicy burgers and tasty sides. One of the things you may not realize about Red Robin, however, is that burgers weren't even on the original menu. Along with today's quality burger-and-sides fare, Red Robin also has a reputation for offering affordable food, which is attributed to cost savings on frozen fries and the use of less expensive American cheese on burgers. Despite its positive reputation, Red Robin's increased costs and decreased revenue signal trouble ahead.

While Red Robin's financial faltering is hard to ignore, G.J. Hart, the chain's president and CEO, is hoping for a brighter future. Hart emphasizes that many Red Robin locations are still going strong and that closing restaurants that aren't as successful will help fortify the company overall. In the press release announcing the company's financials, Hart also had some thoughts on how to restore Red Robin to its former glory. According to the president and CEO, "As we look to 2025 and beyond, our team will focus on two key priorities: bringing guests back into our restaurants...and an accelerated effort to gain efficiency in our operations and deliver growth."

Red Robin has implemented a so-called North Star plan to hopefully achieve these and other goals. However, the chain faces a challenging marketplace in addition to the financial issues caused by its flagging locations. Eating out has grown increasingly more expensive thanks to practices like implementing surcharges to cover increasing costs related to inflation and other expenses. As a result, Hart's goal of encouraging patrons to return to Red Robin may be easier said than done.