Red Robin has announced that he is considering closing about 70 seats to achieve more results, as the gourmet burger chain is trying to pay off a debt.
The total revenue of the 2024 chain is $ 1.25 billion, a $ 54.5 million reduction compared to 2023, according to a February profit. The net loss of Red Robin was $ 77.5 million in 2024, compared to a net loss of $ 21.2 million in 2023, the company said.
Last year, Red Robin closed one place after his lease expires, but now the chain “evaluates alternatives for approximately 70 seats to reach restaurants, including closure at the expiration of the current leasing period”, according to the announcement.
GJ HART, the President and CEO of Red Robin, said most of the larger places are expected to end in the next five years with their leasing contracts. In 2025, the company expects to close 10 to 15 restaurants, he added.
“While the financial results for 2024 have fallen well below our initial expectations, we have made significant improvements to your visit and believe that we are still a significant opportunity for us to achieve the full potential of our emblematic brand,” Hart said.
As Red Robin seems to be bounced, Hart said the company would focus on returning guests to its “safer food”, improving the efficiency of its operations and increasing profitability of the restaurant and corporate level. The addition of new menu and promotions in 2025, including limited time and new salad options, will be crucial to helping the company lures the guests back, the CEO added.
“2025 started well with the comparable inertia of the revenue from a restaurant, which we left the fourth quarter, continuing in the first eight weeks of the first quarter,” Hart said. “With the strategy we have, we believe that we are well positioned to achieve considerable value for both our guests and shareholders.”
While Red Robin had some negative results in 2024, HART said over 300 seats owned by Burger Chain’s company continued to perform well, including sales. After the fiscal year in 2024 (which ended on December 29, 2024), there were 498 Red Robin restaurants, and 407 of which are owned by the company and 91 were run by franchisees, according to the company.
The expected closure will help to strengthen the Red Robin portfolio and will release money that can be reinvested in the company or used to pay off a debt, Hart said. The chain also examines other sails to speed up the process that the CEO said he and the company will soon provide updates.