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SEATTLE - Red Robin Gourmet Burgers, a longtime staple in Washington's casual dining industry, is considering the closure of up to 70 underperforming locations across the U.S. and Canada, according to its latest financial report.
The move comes as the company reported significant losses in its fiscal year 2024 earnings.
Keep reading to find out which locations could shutter this year.
Washington locations at risk
What we know:
Red Robin currently operates 31 locations in Washington, where the company was originally founded.
What we don't know:
While the restaurant chain has not yet announced specific locations slated for closure, the evaluation of underperforming sites raises concerns about the future of several Washington restaurants.
According to the company’s fourth-quarter report, Red Robin experienced a $77.5 million net loss in 2024, a sharp increase from the $21.2 million loss in 2023. The financial downturn is attributed to declining revenue, rising operational costs and strategic closures.
Financial challenges, cost-cutting measures
By the numbers:
In an effort to stabilize operations, Red Robin has implemented cost-saving initiatives, including evaluating real estate assets and optimizing restaurant-level efficiency. The company also announced plans to sell three owned properties, generating approximately $5.8 million to help repay debt and cover corporate expenses.
Despite a 3.4% increase in comparable restaurant revenue in Q4 2024, overall annual revenue declined by $54.5 million year over year. The company has also struggled with rising labor and food costs, impacting profitability.
Uncertain future for local restaurants
Red Robin’s leadership remains focused on improving customer experience and driving traffic back into restaurants. However, with ongoing financial pressures, restaurant closures appear to be a key part of the company’s strategy moving forward.
The company has not provided a definitive timeline for closures, but further announcements are expected in the coming months.
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The Source: Information for this story came from a Red Robin Gourmet Burgers, Inc press release.