Red Robin Gourmet Burgers will close eight additional company‑owned restaurants this year after quietly shutting six in the first quarter, trimming a U.S. footprint that once felt untouchable. The move, confirmed by chief financial officer Todd Wilson, highlights the pressure facing mid‑tier chains as diners split their dollars between bargain menus and trendy upstarts.
First things first: the closures are expected to leave Red Robin with 393 corporate stores and 90 franchises by December—down from 401 company outlets at the start of 2025. Who will feel it most? Workers waiting for the location list and fans whose signature Towering Onion Rings may soon require a longer drive.
Why Red Robin says closing underperforming restaurants is the only viable option
Wilson was frank: guest traffic is inching forward while wage and food costs sprint. In markets already packed with roughly 84,486 burger joints nationwide, even a 0.9 percent annual rise in outlets since 2019 has sliced the pie thinner and thinner. Therefore, pruning weaker sites should free cash for kitchen upgrades and digital marketing—at least on paper.
| Metric | Early 2025 | Year‑end target |
|---|---|---|
| Company‑owned restaurants | 401 | 393 |
| Franchised restaurants | 90 | 90 (steady) |
| Shops closed so far | 6 | 14 total |
The company has not published the full list of cities on the chopping block—raising a nervous “Is my town next?” among employees.
Can a crowded burger field keep growing when diners demand value and variety?
Industry trackers note that McDonald’s and Burger King still control about one‑quarter of all domestic burger sites, yet neither tops taste rankings these days. Five Guys, Steak ’n Shake, and In‑N‑Out routinely win consumer polls, siphoning both buzz and bellies. On the other hand, the inflation‑pinched customer is price‑shopping more aggressively than ever. Consequently, mid‑priced brands like Red Robin are squeezed between dollar‑menu giants and “better burger” boutiques.
What should regulars expect next as executives promise a ‘Red Robin comeback’?
April’s arrival of turnaround veteran David A. Pace as chief executive set a new tone. Pace says the brand is “far from declaring victory,” yet Wilson has already calmed customers with a pledge: no additional menu price hikes through 2025. That pause, coupled with lower overhead, is meant to lure families back without sticker shock.
Still wondering whether your rewards points will vanish overnight? Relax—for now the loyalty program and those bottomless fries remain intact. The bigger unknown is whether a leaner Red Robin can reclaim its sales peak in a burger landscape that never stops flipping.
Strategic closures may buy breathing room, but the chain still has to win the taste‑quality‑value equation if it hopes to land back on top.