An iconic U.S. burger joint might be closing dozens of locations in the coming year.
The restaurant industry has been recovering for a couple of years, after the COVID-19 pandemic wreaked havoc on everyone in the food and beverage world, though things are still tough for many iconic U.S. chains. Unfortunately, one of them is considering closing dozens of locations, due to suffering millions in losses.
Red Robin, "where flavor meets fun," has hundreds of locations across the country. However, things have been tough for the iconic U.S. burger chain as of late. It had a pretty tough Q4 in 2024.
The burger chain's fourth-quarter deficit increased from $13.7 million to $39.7 million over the same period last year. Red Robin's revenue also reportedly dropped close to 8 percent, going down to $285.2 million.
Now, the iconic U.S. burger chain is considering shutting down dozens of locations.
Red Robin is reportedly considering shutting down up to 70 locations in the coming year.
G.J. Hart, the CEO of the company, remains optimistic.
"As we look to 2025 and beyond, our team will focus on two key priorities: bringing guests back into our restaurants for moments of connection over crave-able food that only Red Robin can provide and an accelerated effort to gain efficiency in our operations and deliver growth in restaurant and corporate-level profitability while maintaining the improved guest experience that we have developed over the past two years," he said.
The company, meanwhile, plans to offset its losses by cutting up to 70 restaurants.
"As of December 29, 2024, the company had outstanding borrowings under its credit facility of $189.5 million and liquidity of approximately $50.7 million, including cash and cash equivalents and available borrowing capacity under its credit facility," the company reported.
"During the fourth quarter of fiscal 2024, the company closed one restaurant location upon expiration of the lease and is evaluating alternatives for approximately 70 underperforming restaurant locations, including closure upon expiration of the current lease term."
Red Robin is also reportedly planning to sell some properties, which could result in millions of income for the company. They remain a popular destination for many, due to their burgers and famous bottomless fries.