Red Robin to shutter 15 locations by 2025

Red Robin, a well-known burger chain, has disclosed the closure of seven establishments this year and plans to shut down at least eight more by year-end, the company stated during its first-quarter earnings report. The company announced in March its intention to close numerous underperforming locations over the following years, primarily as their leases come to an end, although the specific sites to be shuttered have yet to be identified.

During the initial quarter of 2025, Red Robin ceased operations at six company-owned locations and one franchise outlet, as per its first-quarter earnings statement. As of now, there are 401 company-owned venues and 90 franchise restaurants still operating. Todd Wilson, Red Robin’s chief financial officer, suggested that the company anticipates operating 393 company-owned eateries by year-end but did not provide details on which locations are poised for closure or any additional expected shutdowns of franchise operations.

Interestingly, no new eateries were opened by the chain throughout the first quarters of 2025 and 2024, in accordance with its earnings assessment. Noteworthy is the unexpected revelation of a $1.2 million profit recorded in the first quarter, a stark contrast to the prior year’s $9.5 million net loss. Revenue exhibited a 1% year-over-year increase attributed to a 6.8% uptick in menu prices, offsetting a decline in foot traffic, as per the report.

Remarkably, Red Robin does not foresee implementing further price hikes in 2025, prioritizing value preservation for its patrons. Given the expected impact of tariffs, the company aims to manage the impact while preserving guest value per Wilson’s statement. In late April, David A. Pace assumed the roles of president and CEO at Red Robin, emphasizing that more effort lies ahead in Red Robin’s recovery journey before claiming success.

There has been no mention of the closure prospects of franchise locations, although the marked success in the first quarter marks a positive step toward the strategic closures planned to boost overall performance. Red Robin’s approach to selectively shutter underperforming sites while maintaining profitability and guest value demonstrates their commitment to strategic growth and operational viability in the competitive restaurant industry.