Red Robin joins other casual restaurant chains closing dozens of restaurants

Red Robin will shutter 70 underperforming locations over the next five years as it tries to find its way back to profitability.

The restaurant chain reported a net loss of $77.5 million in 2024 but the company-owned units targeted for closure were calculated to have caused a cash burn of only about $9.5 million.

Red Robin closed nine restaurants in 2024, eight of which were company-owned. Ten to 15 restaurants are expected to close in 2025. The chain finished the year with 498 units systemwide; 407 corporate units in 39 states and 91 franchises in 13 states. Over the past six fiscal years, the brand has opened only five restaurants per year.

Red Robin is among other casual restaurant chains that have been closing dozens of restaurants as the popularity has shifted from casual to fast-casual restaurants.

Fast casual restaurants typically offer a balance of fast service and higher quality food than fast food or quick service restaurants, also known as QSRs. Fast casual restaurants fall between fast food and casual dining. The meal is typically more expensive than fast food but less expensive than casual and fine dining.

One element of fast food and fast-casual dining that is different from casual and fine dining is the counter service where patrons go to the counter, order food and either pick up their meals from the counter or they are delivered to the table. The fast casual format saves on wait staff, also known as servers, and the tables usually turn much faster. Casual restaurants still rely on costly wait staff responsible for providing customer service, food and drink orders.

Some casual dining chains have had to reorganize under chapter 11 over the past year in order to stay afloat, such as TGI Fridays, Red Lobster, Buca di Beppo, Rubio's Coastal Grill and the entity that previously owned BurgerFi and Anthony's Coal Fired Pizza.

Red Robin Gourmet Burgers, Inc., more commonly known as simply Red Robin, was founded in September 1969 in Seattle, Washington.

Read more: Red Robin to Close 70 Underperforming Restaurants (FSR Magazine)