Casual burger joint and American-fare chain Red Robin announced upcoming widespread closures last week, mirroring struggles faced by numerous national restaurant and retail brands in the past year.
In its fourth-quarter and 2024 year-end results report released on Feb. 26, Colorado-headquartered Red Robin said it's "evaluating alternatives" for about 70 underperforming restaurant locations, including closure upon the expiration of their current leases. Most of the 70 restaurants are expected to close by 2030, Red Robin president and CEO G.J. Hart said in the earnings webcast. Red Robin operates about 500 restaurants throughout the U.S. and Canada.
In 2025, 10 to-15 restaurants are slated for closure, Hart said. According to the report, Red Robin plans to sell three properties in the year's first quarter. Hart said closing the underperforming locations will help pay off debts and reinvest in remaining restaurants.
He also said the restaurant chain plans to add new menu items throughout the year, including "hot honey" crispy chicken sandwiches, wings and pizzas in March. Later in the year, Hart said new salads and burgers featuring "a new flavor profile or two from around the globe" are possibilities.
Why is Red Robin closing restaurants?
In 2024, Red Robin generated a restaurant-level operating loss of about $6 million. The company also burned about $9.5 million on the restaurants in capital expenditures and G&A last year, Restaurant Business reported.
Total revenue decreased by $54.5 million and net income fell by $77.5 million, compared to a net loss of $21.2 million during 2023. Meanwhile, menu prices rose 7.3% in 2024, according to the report.
The report also shared some positive developments for the company. Same-store sales rose 3.4% in the fourth quarter. Restaurant Business reported that traffic increased 6% in 2024, and customer satisfaction scores jumped 8% compared to 2023.
Where are Red Robin's California restaurants?
It's not yet known which Red Robin locations are set to close. The brand has 55 locations in California, according to its online store locator, including in Victorville, Apple Valley, Visalia and Manteca.
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This article originally appeared on Milwaukee Journal Sentinel: Is Red Robin closing restaurants in California? Here's what we know