Red Robin, a well-known burger chain with deep roots in the American dining scene, has announced plans to potentially close 70 of its restaurants as it grapples with ongoing financial difficulties. This move follows a troubling period for the chain, which recorded a loss of $32.4 million during the fourth quarter of the fiscal year 2024, primarily due to the closure of underperforming locations.
According to Fox News, Red Robin, which currently operates 498 locations across North America, has not filed for bankruptcy protection but is actively working to turn around its business by closing stores that are not meeting financial expectations. The company aims to reduce its footprint and focus on improving the overall customer experience, hoping to lure back former regulars. Despite these efforts, the chain acknowledged that some closures are necessary to ensure the brand’s survival.
Founded in 1969 near the University Bridge in Seattle, Red Robin has a long history and a strong presence, with 31 of its locations still operating in Washington state. The chain’s announcement to close locations comes after a company review revealed that certain stores are no longer sustainable due to decreased sales and growing operational costs.
While no specific timeline for the closures has been provided, industry experts suggest that the affected locations could begin shutting down by mid-2025, once their leases expire. This is in line with a broader trend seen across the restaurant industry, where several long-standing brands have been forced to close locations in response to financial strains exacerbated by the COVID-19 pandemic.
Red Robin’s efforts to streamline operations and improve customer service come at a time when many other restaurant chains, including TGI Fridays, Denny’s, and Ruby Tuesday, have also faced similar struggles, opting to close underperforming restaurants in an attempt to stay afloat. However, unlike some of these chains, Red Robin has yet to file for bankruptcy protection, choosing instead to make operational changes in an effort to regain financial stability.
As the chain continues to navigate these challenges, customers in affected regions may soon see their local Red Robin restaurant close. However, those in other areas can still expect the brand to remain a familiar fixture in the American dining scene for the time being.
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