Red Robin is considering closing around 70 underperforming locations that led to operating losses in 2024, according to a report by Nation’s Restaurant News (NRN). Despite these losses, the company experienced positive developments in the fourth quarter, including a 3.4% growth in same-store sales and increased customer traffic throughout the year.
The closures are part of a strategic five-point plan initiated in early 2023 under the leadership of CEO G.J. Hart. The plan aims to streamline operations and reinvest in the business by eliminating loss-generating outlets. By the end of 2025, Red Robin expects to close 10 to 15 of these locations.
Hart noted that the closures would highlight the strength of the remaining portfolio and free up cash for further investment. The company reported a total loss of approximately $40 million for the year.
The chain has seen a significant increase in loyalty program members, adding 1.5 million new members since revamping the program in May. This program has been a major contributor to increased traffic, with new and returning members accounting for a substantial portion of visits.
Red Robin is also continuing its value promotions, such as “Monster Mondays” and “$10 Cheeseburger Tuesdays,” and plans to introduce new menu items, including a “Hot Honey” platform launching in March. These efforts are part of the company’s strategy to attract more customers and drive sales growth.
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