Gourmet burger chain Red Robin is considering closing about 70 underperforming locations.
Most of those stores are expected to close over the next five years as their leases expire, including 10 to 15 restaurants in 2015, said G.J. Hart, the chain’s president and CEO.
Why would Red Robin close stores?
The chain is “evaluating alternatives for approximately 70 underperforming restaurant locations, including closure upon expiration of the current lease term,” according to a company release.
Red Robin said the move is part of a plan to repay debt.
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The chain’s total revenues for 2024 are $1.25 billion, a decrease of $54.5 million when compared to 2023, according to a February earnings release. Red Robin’s net loss was $77.5 million in 2024, compared to a net loss of $21.2 million in 2023, the company said.
“While financial results for 2024 fell well below our original expectations, we’ve made substantial improvements to the guest experience and believe we still have a significant opportunity ahead of us to reach the full potential of our iconic brand,” Hart said.
Red Robin adding new menu items, promotions
As Red Robin looks to bounce back, Hart said the company will focus on bringing guests back into its locations for “craveable food,” bettering efficiency in its operations and growing profitability at the restaurant and corporate levels.
Adding new menu items and promotions throughout 2025, including limited-time offers and new salad options, will be key in helping the company lure guests back, Hart said.
“2025 is off to a good start with the comparable restaurant revenue momentum we had exiting the fourth quarter, continuing through the first eight weeks of the first quarter,” Hart said. “With the strategy we have in place, we believe we are well positioned to deliver significant value to our guests and shareholders alike.”
While Red Robin had some negative results in 2024, Hart said the burger chain’s more than 300 company-owned locations continue to perform well, including making a gain in sales. Following the 2024 fiscal year (which ended Dec. 29, 2024), there were 498 Red Robin restaurants, and of those, 407 were company-owned and 91 were operated by franchisees, according to the company.
The anticipated closures will help strengthen Red Robin’s portfolio and free up money that can be reinvested or used to repay debt, Hart said. The chain is also exploring other lanes to speed up this process, which the CEO said he and the company will provide updates on soon.
Red Robin locations in Indiana
- 2846 E. 3rd St., Bloomington
- 14599 Clay Terrace Blvd, Carmel
- 6636 E. Lloyd Expressway, Evansville
- 4201 Coldwater Rd., Fort Wayne
- 8190 N. Shadeland Ave., Indianapolis
- 2465 Southlake Mall, Merrillville
- 4010 N. Main St., Mishawaka
- 13215 Harrell Parkway, Noblesville
- 365 S. Perry Rd, Plainfield
- 1410 US-41, Schererville
- 3004 John Howell Dr., Valparaiso
Denny’s and Wendy’s closing underperforming locations
Other restaurant chains, including Denny’s and Wendy’s, have decided to close underperforming locations to improve their companies.
Denny’s announced it will shutter 70 to 90 restaurants in 2025, and the chain closed 88 locations a year ago. Wendy’s closed 276 poor-performing restaurants last year, Restaurant Dive reported.
Contact IndyStar reporter Cheryl V. Jackson at [email protected] or 317-444-6264. Follow her on X:@cherylvjackson, or Bluesky: @cherylvjackson.bsky.social.
