WASHINGTON — Red Robin will close dozens of underperforming restaurants over the next several years, including 10 to 15 locations throughout 2025.
The American restaurant chain known for its burgers made the announcement in an earnings call last week, explaining the move to be part of an effort to streamline its operations and strengthen its overall portfolio.
Red Robin, which operates more than 400 company-owned locations across 39 U.S. states and one Canadian province, reported that while more than 300 of its restaurants continue to perform well, approximately 70 locations are underperforming.
These underperforming restaurants generated a restaurant-level operating loss of about $6 million in 2024.
Red Robin’s president and CEO, G.J. Hart, said the company will close the majority of these underperforming locations over the next five years, primarily when their leases expire.
In 2025, the company expects to close 10 to 15 of the locations, with closures “pretty spread over the course of the year,” according to a company official.
As of the end of 2024, Red Robin operated 498 locations, including 407 company-owned and 91 franchise locations. The company employs over 21,000 people.
“We believe the expected closure of a majority of these restaurants will allow the strength of our remaining portfolio to become clear over time and free cash that we expect to reinvest in the business and use to repay debt,” Hart said.
Though specific locations for the closures have not been disclosed, Red Robin’s announcement follows similar moves by other restaurant chains to close underperforming stores. In October 2024, Denny’s revealed plans to close 150 of its lowest-performing restaurants.