Alright, burger lovers, we’ve got some bad news: “Red Robin”—yes, the home of bottomless steak fries—is getting ready to close “up to 70 locations” across the country. If that just ruined your dinner plans, you’re not alone.
The popular gourmet burger chain is struggling to keep up with a brutal market, and CEO G.J. Hart is making some tough calls. The strategy?
Cut underperforming locations as leases expire and focus on revitalizing the rest. The company’s financials for 2024 ““fell well below”” expectations, and after reporting a hefty “$32.4 million loss”, something had to give.
Now, Red Robin isn’t the only restaurant facing trouble. It’s part of a much larger industry-wide meltdown that’s already claimed some major names. “Red Lobster” filed for bankruptcy in May.
“Hooters” recently announced it’s closing over 40 locations. Even bigger chains like “Applebee’s, TGI Fridays,” and “Boston Market” have been shutting down restaurants left and right.
So what’s going on? According to “Bar Rescue” host Jon Taffer, there are four major reasons why restaurants are getting hit so hard:
1. “Pandemic Fallout” – Many businesses are still recovering from the financial hole they fell into during COVID-19.
2. “Inflation” – The cost of everything—ingredients, rent, utilities—is “way” up.
3. “Staffing Issues” – It’s been tough to find and keep enough workers.
4. “Diet Drugs” – Yes, really. The rise of weight-loss medications like Ozempic is causing some customers to order less food, which means smaller checks and lower sales.
It’s a “perfect storm”, and even iconic brands are struggling to stay afloat. Taffer pointed out that restaurants like Hooters might also be dealing with an “image problem”. He compared it to “Howard Johnson’s”—once a huge name in dining, but ultimately left behind because it failed to evolve.
For Red Robin, the plan now is to focus on “keeping customers coming back”. They’ve already made some “substantial improvements” to the guest experience, according to Hart, and expect to see better traffic in 2025. They’re also selling off three properties to help pay down debt.
But the reality is clear: this is a “make-or-break moment” for Red Robin. If they can’t turn things around, those famous bottomless fries might not be around forever.
