Red Robin Is Likely Closing 15 Stores in 2025 (Are You Losing One?)

While everybody needs to eat, rising dining costs have American families cutting restaurants from their spending, and many look for ways to stretch their restaurant budget on the occasions they do choose to eat out.

As a result, fast-casual dining is taking a hit, and Red Robin is just one of the chains to suffer consequences. With dozens of locations potentially closing, learn what the restaurant chain is doing to try and stay relevant in this turbulent financial landscape.

These closings came after a review of the company's operations. Red Robin reported a net loss of $77.5 million for 2024, compared to the previous year's $21.2 million. The fourth quarter of 2024 saw net losses of $39.7 million as well, which was also significantly more than the same time period in 2023, which only saw $13.7 million in losses.

Despite this, according to a Red Robin spokesperson, the company achieved positive comp sales up 3.4% and continued sequential traffic improvement in the fourth quarter, a positive sign for the company. Additionally, they stated that over 300 locations are performing well under their transformation efforts, which could reduce closures.

Additionally, in the company's May 29 earnings call, Red Robin posted unexpected profit. Even though a slight decline was expected, revenue rose 1% year-over-year to $392.4 million.

Red Robin is considering closing approximately 70 restaurant locations over the next five years. According to a Red Robin spokesperson, this number may be reduced based on future performance. 

Underperforming locations are targeted for the cut, although a comprehensive list has not yet been released. The plan is to systematically let the leases on those locations expire without renewal for an organized and steady exit.

Red Robin projects that 15 locations will be shut down in 2025. In the May 29 earnings call, Todd Wilson, executive vice president and chief financial officer, announced that eight more company-owned locations will close in 2025.

Three company-owned locations that closed upon sale in the first quarter were expected to generate around $5.8 million for the company to pay down debt.

The Red Robin in Easton, Ohio (3977 Morse Crossing) closed its doors on March 16. The company also closed one location in the fourth quarter of 2024.

Additionally, six company-owned restaurants and one franchise location have already closed.

According to Wilson, there are 401 company-owned restaurants and 90 franchise locations. By the end of the year, this is expected to be 393 company-owned restaurants.

California, Washington, and Pennsylvania are home to the most locations.

Red Robin is neither the first nor the last restaurant to face financial challenges. Many staple chains are closing locations or even going out of business entirely. 

Denny's, Wendy's, and Outback Steakhouse are just some of the companies retracting their footprints. Others, such as Tijuana Flats, Buca di Beppo, and TGI Fridays, have filed for bankruptcy.

In 1926, the eatery location that would become the first Red Robin was advertised for rent in the classified section of the Seattle Times newspaper for a staggering $30 per month. It went through a series of owners and names before finally finding its groove as Red Robin in 1969.

According to restaurant legend, the name came from owner Samuel Caston, who would sing the hit song "When the Red, Red Robin (Comes Bob, Bob, Bobbin' Along)" while he worked.

Red Robin is known for its bottomless sides, including everything from the iconic steak fries to bottomless kettle chips, sweet potato fries, garlic fries, broccoli, or salad. 

The chain also offers a selection of bottomless drinks — and it's not just fountain drinks, either. Signature beverages such as the Freckled Lemonade and root beer floats are also endlessly refillable.

While some locations are closing, exciting changes await current locations. Barbecue fans can enjoy the chain's limited-time summer lineup, including the Backyard BBQ Pork Burger and Nachos, a Peach-Berry Freckled Lemonade, or a Peaches and Cream Milkshake.

Previously, Red Robin was known for "flame-broiled" burgers cooked on a conveyor belt system. In 2023, the company switched to a flat-top grill to create an even more delicious flavor and has since rolled out this change to all locations. 

Red Robin's corporate leadership believes this allows them to offer higher-quality food that will keep customers returning for more.

Red Robin hopes to strategically avoid bankruptcy by closing unprofitable locations and focusing on the corporate "North Star" five-point plan to improve shareholder value. This includes a loyalty program — Red Robin Royalty. The program is free to sign up for, and you can earn one point for every $1 spent, 100 of which gets you a $10 reward.

The chain also offers a series of time-based promotions. Monster Mondays allows customers to upgrade their burgers at a reduced price of $2, and $10 cheeseburgers are available on Tuesdays. 

Taking advantage of these promotional offers can keep more cash in your wallet while also keeping your belly full, and could potentially help keep Red Robin from filing for bankruptcy.