Red Robin revealed its impending closure strategy in its fourth-quarter and 2024 year-end results report on February 26, with President and CEO G.J. Hart stating that 10 to 15 closures are slated for 2025, including the sale of three properties in the first quarter to offset debts and reinvest in the brand. While no specific locations have been confirmed, the chains 55 California outposts - including nearby sites in Westfield Plaza Bonita in National City and Mershops North County Mall in Escondido - could be in the crosshairs, leaving San Diego food enthusiasts uncertain about whether the chain's signature burgers and bottomless fries will remain a local option. The company plans to close a total of 70 branches by 2030.Ìý
The decision stems from financial struggles, with Red Robin reporting a $6 million restaurant-level operating loss in 2024 from these underperforming sites, alongside a $9.5 million cash burn on capital expenditures and general administrative costs. The company's total revenue dropped $54.5 million, and net income plummeted to a $77.5 million loss, a stark contrast to the $21.2 million loss in 2023, despite a 7.3% menu price increase.Ìý
This mirrors a broader trend among national chains like Denny's and Wendy's, which have also shuttered underperforming locations, but the establishment narrative of a turnaround - highlighted by a 3.4% same-store sales rise in Q4 2024, 6% traffic growth, and an 8% boost in customer satisfaction - suggests Red Robin is betting on efficiency over expansion. Critics might question whether rising costs and shifting consumer preferences toward fast-casual options are driving these closures, especially in a competitive market like San Diego, where local favorites often outshine national chains.
Red Robin already closed a San Diego County location in recent years. In 2024, the company shuttered its branch within Westfield UTC Mall in La Jolla. The building is now set to become a branch of Orange County's Gen Korean BBQ.Ìý
Despite the closures, Red Robin is pushing forward with menu innovation to attract diners, planning a "Hot Honey" platform launch in March featuring crispy chicken sandwiches, wings, and pizzas, with summer bringing new salads and globally inspired burgers. This comes as the chain operates approximately 500 locations, with the majority company-owned, and has faced challenges adapting to post-pandemic dining habits.Ìý
Despite the closures, Red Robin is pushing forward with menu innovation to attract diners, planning a "Hot Honey" platform launch in March featuring crispy chicken sandwiches, wings, and pizzas, with summer bringing new salads and globally inspired burgers. This comes as the chain operates approximately 500 locations, with the majority company-owned, and has faced challenges adapting to post-pandemic dining habits.Ìý
There are currently no specific Red Robin branches set for closure. For more information, visit .Ìý
Originally published on March 4, 2025.Ìý
