In not-so “yummm” sounding news, Red Robin, the fast casual restaurant chain known for serving up gourmet burgers, is struggling its way into 2025. The company recently reported its fourth quarter financial results for 2024 and in the report itself the company announced that it’s likely looking to close up to 70 of its restaurant locations. The decision comes in light of Red Robin’s 2024 financial results, which exhibit significant decreases in revenue.
Red Robin made $54.5 million less in revenue in 2024 compared to 2023 and the company ended 2024 with a net loss of $77.5 million compared to just $21.2 million in 2023. Despite these decreases, the chain’s CEO, G.J. Hart, expressed optimism about Red Robin’s future and current performance, noting that the last two years have been “transformational” for the brand. However, the CEO also acknowledged Red Robin’s financial performance for 2024 fell under expectations. Red Robin has made a number of changes over the past few years in an attempt to bring the restaurant brand back to its former glory.
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In 2023, Hart attended a conference in which the CEO presented a candid examination of Red Robin’s struggles and the plan to turn things around. Around 2016 is when Hart said Red Robin’s performance began to decline. In response to this, two changes were made that evidently backfired.
Red Robin got rid of its bussers and steered away from serving “gourmet” burgers in favor of a cooking process that resembled the conveyor belt-style of fast food chains like McDonald’s and Burger King. Hart made plans to reverse these changes. Red Robin has also made efforts to improve overall customer experience and invest more in promoting its menu, which has many bottomless options.
In 2021, Red Robin partnered with Donato’s Pizza and began offering the pies in a select number of its restaurants. The two brands made plans for a nationwide expansion of the partnership but put that on pause in 2023 in order for Red Robin to focus on its comeback.
It’s evident that Red Robin’s leadership has its eye on the prize, but the chain’s financial situation might be too heavy a load for this comeback to succeed. Saying goodbye to 70 locations certainly indicates that Red Robin is currently standing on its back foot.
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