Red Robin has announced a shocking plan to shutter up to 70 locations across the country as it struggles to keep up with a tumultuous market.
The wildly-popular fast food chain announced its intention to close low-performing stores as their leases expire in an attempt to revive its flailing operations.
As financial results for fiscal 2024 ‘fell well below’ the company’s original expectations, Red Robin CEO G.J. Hart said the company has made ‘substantial improvements to the guest experience’ in an effort to drive traffic back to its stores.
During an earnings call last week, the CEO – who took the helm in 2022 – told analysts that the company saw a ‘600 basis-point improvement in traffic trends’ from the first quarter of the year to the fourth, FoxBusiness reported.
‘While our improvement has been substantial, we have not yet reached the potential of our iconic brand and expect to drive further traffic improvements in 2025,’ Hart added.
In late 2024, the chain – known for its gourmet burgers and bottomless steak fries – already closed one location and recorded a hefty loss of $32.4 million at the end of the year, according to a ‘review of underperforming restaurants.’
Ahead of the closure announcement, the gourmet burger and spirits company unveiled plans to sell three properties. The sale of those locations is expected to generate $5.8 million, which will be used in part to repay the company’s debt.
Red Robin announced its shock plans to potentially shut down nearly 100 locations, as their leases expire, on Wednesday in an attempt to revive its flailing operations
Known for its gourmet burgers and bottomless steak fries, the popular American fast food chain announced a shocking plan to possibly shudder up to 70 locations across the country
Red Robin’s partial-closure plan is the latest in a growing number of fast-food eateries planning to close locations citing financial difficulties.
Another beloved American staple, Red Lobster, filed for Chapter 11 bankruptcy back in May.
Other top-ranking fast food chains are also struggling, citing rising costs of rent and ingredients.
In June, Hooters – known for its scantily-clad waitresses – announced shocking plans to shutter over 40 of its restaurants including locations in Florida, Kentucky, Rhode Island, Texas and Virginia.
‘Like many restaurants under pressure from current market conditions, Hooters has made the difficult decision to close a select number of underperforming stores,’ a spokesperson for the company told DailyMail.com.
‘We look forward to continuing to serve our guests at home, on the go and at our restaurants here in the US and around the globe.’
Hooters will have about 300 restaurants globally after the closures, down from 333 in 2018, according to Techonomic.
Bigger chains like Applebee’s, TGI Fridays and Boston Market have have all recently shuttered restaurants, as have smaller chains like BurgerFi.
Speaking to Fox Business’s Stewart Varney on Wednesday, Bar Rescue host, Jon Taffer, claimed the mass closures are due to a myriad of reasons.
‘I think that there are four elements working against us together,’ the show host said.
‘Number one is the fallout of the pandemic,’ Taffer said. ‘Many restaurants and retailers are in debt. They have fallen behind on equiptment, etcetera from the hole created by the pandemic.’
The Paramount Network star also suggested inflation has much to do with the widespread closures across the restaurant industry.
Speaking to Fox Business’s Stewart Varney (left) on Wednesday, Bar Rescue host, Jon Taffer (right), claimed the mass closures are due to a myriad of reasons
‘I think that there are four elements working against us together,’ the show host said. ‘Number one is the fallout of the pandemic,’ Taffer said. ‘Many restaurants and retailers are in debt. They have fallen behind on equiptment, etcetera from the hole created by the pandemic’
‘Add inflation to that. All of our costs now are elevated, including energy costs, real estate costs, you name it the cost is up,’ Taffer said.
Taffer suggested a third element – staffing issues – are also to blame in the industry-wide downturn.
‘The third element… staffing issues. Having a hard time finding the employee base that we need to properly serve our customers,’ he said, before adding the fourth and final element believed to be working against restaurantaurs.
‘The fourth element, surprisingly, are all the diet drugs people are taking,’ he suggested. ‘I am finding people who came in for a meal, now they are coming in for an appetizer, that is all they can eat.’
Taffer suggested those ‘four elements’ are what is ‘heavily’ affecting the restaurant business.
‘Icons like TGI Friday’s, Denny’s, Ruby Tuesday, these companies are about to file bankruptcy or have. Red Lobster, it is a shame to see iconic brands like this go through such struggles,’ he solemnly added.
However, Taffer, who admitted he used to own a few Hooters locations, believes the company’s struggles are not all related to the floundering economy.
‘One last thing I might add, Hooters is another one going bankrupt. I am not sure that is so economic. Truth be told I used to own a couple of Hooters years ago,’ Taffer began.
‘I call it the Howward Johnson syndrome. When restaurants companies changed, Howard Johnson still had orange seats and blue counters, I think Hooters became dated and these impacts happened.
‘Restaurants need to stay current , and stay current in their economic models. Restaurants that survive today have a model created for today’s environment,’ he concluded.
The sports bar-style restaurant is well known for its wings and its scantily clad waitresses (pictured), is under pressure from current market conditions
Taffer, who’s hit-show was recently renewed for a tenth season, then shared ‘the recipe for success’ as to how to rescue a struggling business.
‘First thing you do is you have to focus on the customer, not yourself. What can you do to win that customer back? To build that confidence to establish a brand.’
Taffer also claimed that ‘iconic brands don’t last’ with younger generations who he claims seek ‘newer’ attractions.
‘Iconic brands don’t last with younger generations,’ he said. ‘The newer brands tend to get more traction than iconic legacy brands. You can get customers in but you have to work hard at it.
‘No excuses, don’t blame the economy, don’t blame the pandemic. Take accountability yourself and get your business together,’ Taffer said.
