One by one, the fast food giants of the US are falling. Now, even Red Robin is planning to shut up shop on 70 of its popular burger restaurants.
In 2024, the well-loved burger chain recorded exceptionally high losses of $32.4 million. This has forced Red Robin to make some pretty drastic changes, with plans to shut 70 underperforming locations.
This is part of a major reshuffle intended to pull funds from restaurants hemorrhaging money and redirect it into a better customer experience. At present, their resources are spread too thin. If they don’t pull their socks up, quality will drop, and their loyal customers will look elsewhere.
CEO G.J. Hart spoke about the desired outcome from shutting up so many shops. He said they are looking to make “substantial improvements to the guest experience.” By closing failing franchises, they can ensure that the Red Robin name is synonymous with quality.
So far, it seems to be working. He noted that “While our improvement has been substantial, we have not yet reached the potential of our iconic brand and expect to drive further traffic improvements in 2025.” It is clear that Red Robin is going to have to make a few more changes if they’re to pull themselves from the brink of fast food fatality.
Red Robin Is Not Alone In Their Financial Misery
Across the US, many restaurants, both fast food and high street, are facing bankruptcy. Red Robin is hardly alone in their need to close locations. Big high street chain restaurants like Hooters, TGI Fridays, and Texas Steakhouse are teetering on the edge of financial ruin.
This comes amid numerous economic challenges. Many of the companies took on huge loans during the pandemic, expecting the surge of returning customers to pay them off. However, that surge never really came, with far fewer people choosing to eat out or splurge on fast food.
With wages remaining stagnant, but the cost of living skyrocketing in the US, people have become much less likely to eat out. Rather than something like Red Robin fast food being a common meal, it is now seen as a treat. People are pinching those pennies, and locations like Red Robin are feeling it.
