Red Robin Plans to Close Up to 70 Locations Amid Financial Struggles

Red Robin plans to close up to 70 underperforming locations as it grapples with significant financial losses, reporting a $32.4 million deficit for 2024. CEO G.J. Hart emphasized the need for these closures to redirect resources towards improving customer experience and driving traffic back to stores. The company has seen some improvement in traffic trends but acknowledges it has not yet realized the full potential of the brand. This move reflects a broader trend in the restaurant industry, where many chains, including Hooters and Red Lobster, face financial difficulties and are closing locations to stabilize operations. Rising costs of rent and ingredients, coupled with stagnant wages and shifting consumer habits, continue to challenge many eateries across the country. As part of its strategy, Red Robin is also selling properties to manage debt and improve its financial standing.