Red Robin burger chain closing 70 restaurants, including Michigan locations
Red Robin, the popular burger chain, is planning to shutter 70 of its underperforming restaurants in the next five years. This decision comes as the company reported a substantial net loss of $77.5 million in 2024, a sharp increase from the $21.2 million loss in the previous year.
Operating over a dozen locations in Michigan, Red Robin is also reassessing its presence in the state. Amid declining revenue, which amounted to $1.25 billion in 2024, down $54.5 million from the previous year, the chain is looking to consolidate its operations. This move is part of Red Robin’s strategy to pay off its debts and streamline its business for improved financial performance.
While the company did close one Michigan location in 2024 due to lease expiration, it is now eyeing additional closures. Approximately 70 underperforming restaurants are under evaluation, with potential closures upon the expiry of current leases. The specific locations that will be affected have not been disclosed yet.
Red Robin’s President and CEO, G.J. Hart, emphasized that the closures are expected to occur gradually over the next half-decade. The chain aims to shut down 10 to 15 restaurants in 2025 as part of this consolidation effort. Despite the financial setbacks in 2024, Red Robin remains optimistic about the future, citing ongoing improvements in the guest experience.
In response to its financial challenges, Red Robin plans to implement several strategies to recover and stabilize its business. Integral to this recovery plan is a renewed focus on attracting customers with irresistible food offerings. The company also aims to enhance operational efficiency and drive profitability both in its restaurants and at corporate headquarters.
The burger chain is determined to revitalize its iconic brand and regain solid footing in the competitive restaurant industry. With a comprehensive approach that includes improving the dining experience, cost-efficiency, and overall financial performance, Red Robin is positioning itself for long-term success.
As Red Robin embarks on this journey to overcome its financial obstacles and optimize its business operations, the company remains committed to its core values and promises to provide customers with exceptional dining experiences. By strategically closing underperforming locations and realigning its resources, Red Robin is poised to emerge stronger and more resilient in the years to come.
