Bad news for Red Robin Gourmet Burgers fans! The company has announced that it may close around 70 of its locations in the United States. Here’s why they plan to make this decision and everything we know about it.
Why will Red Robin Gourmet Burgers close its restaurants?
This decision comes from a thorough analysis of the company’s operations, which revealed that these stores are not meeting the expected performance targets. Red Robin reported a net loss of $39.7 million in the fourth quarter of fiscal year 2024, a significant drop compared to the $13.7 million loss recorded in the same period in 2023.
As for revenue, the company reached a total of $1.25 billion in 2024, which is lower than the $1.3 billion reported in 2023. The revenue for the fourth quarter was $285.2 million, which means a reduction of $23.8 million. Additionally, restaurant profits experienced a 1.2% decline in the last year.
Which locations will Red Robin?
So far, the company has not specified which locations may close; however, the approximately 70 locations it plans to close represent about 14% of its current restaurants.
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When will Red Robin close its restaurants?
The restaurant chain has already closed one of its locations and plans to close three more during the first quarter of 2025. The rest of the locations will close once their lease contracts expire, which could happen over the next five years.
Red Robin Gourmet Burgers Menu
As its name suggests, the restaurant specializes in burgers, but it also offers other items on its menu, including the following:
- Appetizers
- Salads
- Soups
- Seafood
- Pizza
- Desserts
- Milkshakes
- Domestic and craft beers
- Cocktails
- Wine
How many restaurants does Red Robin have?
Currently, the company has 498 restaurants in 39 U.S. states and one Canadian province, with the highest number of locations in California, Washington, and Colorado.
History of Red Robin Gourmet Burgers
Red Robin Gourmet Burgers, Inc. is a casual dining chain established in 1969 and operates through its wholly owned subsidiary, Red Robin International, Inc., under the trade name Red Robin Gourmet Burgers and Brews.
The origin of Red Robin dates back to the 1940s when it began as Sam’s Tavern in the college town of Seattle. Its owner, Sam, was part of a quartet and a fan of the song “When the Red, Red Robin (Comes Bob, Bob Bobbin’ Along),” which inspired him to change the name of his successful hamburger shop to Sam’s Red Robin.
In 1969, the “Sam’s” part of the name was dropped and the menu was revamped, featuring innovative and unique burgers. This attracted fans from all over the country, who traveled from different states just to taste these gourmet burgers, leading to the opening of multiple Red Robin locations nationwide.
By 1983, the company had 22 restaurants, and that year saw the introduction of Red, the iconic mascot of the chain. Just three years later, Red Robin expanded considerably in the U.S. and Canada, reaching more than 175 locations, all offering a diverse menu that quickly became a favorite among diners.
Since then, the brand has maintained its focus on offering a wide range of burgers and other popular dishes in a friendly and relaxed atmosphere. Today, customers can enjoy their treats through online orders, takeout, delivery, and catering, making it easier to access their variety of menus.
