Red Robin, a well-known gourmet burger chain, has announced plans to shut down 70 underperforming locations across the country. The decision is part of the company’s restructuring efforts to improve profitability amid rising costs and shifting consumer dining habits.
This move comes at a time when the restaurant industry is facing financial struggles, with many chains scaling back operations due to declining in-store dining traffic and increased competition from fast-casual and delivery-based services.
Why Is Red Robin Closing 70 Locations?
The decision to close these restaurants is largely driven by financial challenges. According to recent reports, Red Robin’s revenue has declined by over $54 million in the past year, prompting company leaders to reassess their business strategy.
Some of the key reasons for the closures include:
- Declining Customer Traffic – Fewer people are dining in at Red Robin locations as more consumers opt for takeout and delivery.
- Rising Operating Costs – The cost of food, rent, and wages has increased, making it harder to maintain profitability at certain locations.
- Changing Consumer Preferences – Many diners are moving away from traditional casual dining experiences in favor of quicker, more affordable options.
With these economic pressures in mind, Red Robin has opted to close restaurants that are not generating sufficient revenue to justify continued operation.
Which Red Robin Locations Will Be Affected?
As of now, Red Robin has not released a complete list of which locations will close. However, reports suggest that the closures will happen in phases, with about 15 locations shutting down within the first year and the rest closing as leases expire.
Red Robin operates restaurants across multiple states, including:
- New Jersey
- California
- Texas
- Florida
- Illinois
Customers are encouraged to check the official Red Robin website or contact their local restaurant to see if it will be affected by the closures.
Impact on Employees and Local Communities
Shutting down 70 locations will significantly impact Red Robin employees, as hundreds of workers may lose their jobs. While the company has pledged to help employees transition to other locations or find new job opportunities, layoffs are inevitable.
In addition to job losses, the closures will affect local communities that have come to enjoy Red Robin’s gourmet burgers and unlimited fries. Many loyal customers have expressed disappointment on social media, stating that Red Robin has been a family favorite for years.
For some smaller towns where Red Robin is one of the few sit-down dining options, the loss of these restaurants may be particularly noticeable.
How Red Robin Plans to Recover
Despite the closures, Red Robin’s leadership remains confident that the company will come out stronger. CEO G.J. Hart has outlined a strategic plan to revamp the brand and improve profitability.
Some of the key initiatives include:
- Menu Enhancements – Introducing new, innovative menu items while refining existing offerings to attract more customers.
- Digital Expansion – Investing in online ordering, mobile apps, and third-party delivery services to cater to modern dining preferences.
- Restaurant Remodeling – Updating existing locations to create a more modern, inviting atmosphere for customers.
These changes are aimed at improving Red Robin’s competitive edge and ensuring long-term success in an evolving restaurant landscape.
The Broader Trend: Why Restaurant Chains Are Closing Locations
Red Robin is not the only restaurant chain facing financial struggles. Other major brands, including Applebee’s, TGI Fridays, and Denny’s, have also announced widespread closures in response to similar economic pressures.
Several factors are driving this trend:
- Inflation – The rising cost of ingredients, labor, and rent has made it difficult for casual dining restaurants to maintain profitability.
- Shifts in Consumer Behavior – More customers are choosing fast-casual options like Chipotle and Panera, or turning to food delivery services.
- High Real Estate Costs – Leasing and maintaining large dining spaces in prime locations has become increasingly expensive.
As a result, many restaurant brands are downsizing and focusing on more profitable locations while investing in digital solutions to drive sales.
What Red Robin Customers Should Know
If you’re a frequent Red Robin customer, here’s what you need to keep in mind amid the closures:
- Stay Updated on Location Closures – Check Red Robin’s website or social media pages for official announcements regarding affected locations.
- Use Any Gift Cards or Rewards – If your local Red Robin is closing, consider redeeming your gift cards or loyalty points before it shuts down.
- Expect Service Changes – The company may introduce menu updates, pricing adjustments, and new digital ordering features in the coming months.
What’s Next for Red Robin?
Despite the challenges, Red Robin remains committed to adapting to the changing restaurant industry. The company’s focus on menu innovation, digital transformation, and operational efficiency suggests that it is taking proactive steps to ensure long-term stability.
While the closure of 70 locations is a significant move, it may ultimately help Red Robin streamline its operations and remain a strong competitor in the casual dining space.
For more updates on restaurant closures and industry news, visit Red Robin’s official website.
Disclaimer – Our team has carefully fact-checked this article to make sure it’s accurate and free from any misinformation. We’re dedicated to keeping our content honest and reliable for our readers.
