Red Robin Considers Closing Underperforming Locations Amid Financial Strain

Red Robin joins a growing list of fast-food chains looking to shut down underperforming sites in light of ongoing financial struggles. On Wednesday, the chain revealed it is considering the closure of 70 locations as their leases come to an end. This move is part of a broader strategy to improve its operational performance. Already, Red Robin closed one location during the fourth quarter of fiscal 2024, reporting a $32.4 million loss primarily due to the “review of underperforming restaurants.”

Looking ahead, the company plans to sell three properties in the first quarter of fiscal 2025. This sale is projected to raise $5.8 million, which Red Robin intends to use mainly to reduce its debt burden. The strategic move reflects the company’s efforts to streamline its operations and revitalize its financial health.