Red Robin has announced a shocking plan to close up to 70 locations throughout the country while struggling to keep a tumultuous market.
The wildly popular fast food chain announced its intention to close low -performing stores, while their lease contracts fall into an attempt to breathe new life into his swinging activities.
Because financial results for Fiscale 2024 'fell far below the original expectations of the company, GJ Hart, CEO of Red Robin, said that the company has made' substantial improvements to the guest experience 'in an attempt to return traffic to its stores.
During a profit call last week, the CEO – who took course in 2022 – analysts that the company saw a '600 basic improvement in traffic trends' from the first quarter of the year to the fourth, Foxbusiness reported.
“Although our improvement has been considerable, we have not yet reached the potential of our iconic brand and we expect to stimulate further traffic improvements in 2025,” Hart added.
At the end of 2024, the chain – known for its gastronomic hamburgers and bottomless steak fries – already closed one location and registered a substantial loss of $ 32.4 million at the end of the year, according to a 'assessment of underperforming restaurants'.
Prior to the closure closure, the Gourmet Burger and Spirits Company revealed plans to sell three properties. The sale of those locations is expected to generate $ 5.8 million, which will be partially used to repay the fault of the company.
Red Robin announced his shock plans to possibly close nearly 100 locations, because their lease contracts will expire on Wednesday, in an attempt to breathe new life into his swinging operations
Known for its gastronomic hamburgers and bottomless steak fries, the popular American fast food chain announced a shocking plan to shiver up to 70 locations throughout the country
Red Robin's partial main disposal plan is the latter in a growing number of fast food food options that are planning to close locations with reference to financial difficulties.
Another beloved American staple, Red Lobster, submitted bankruptcy in May Chapter 11.
Other best fast food chains are also struggling, with reference to rising rental costs and ingredients.
In June, Hooters – known for his scantily dressed waitresses – shocking plans to close more than 40 of his restaurants, including locations in Florida, Kentucky, Rhode Island, Texas and Virginia.
“Like many restaurants under pressure from current market conditions, Hooters has made the difficult decision to close a select number of under -performing stores,” a company spokesperson told DailyMail.com.
“We look forward to serving our guests at home, on the road and in our restaurants here in the US and all over the world.”
Hooters will have around 300 restaurants worldwide after the closures, compared to 333 in 2018, according to Techonomic.
Larger chains such as Applebee's, TGI Friday's and Boston Market all have recently closed restaurants, just like smaller chains such as civilian.
Stewart Varney from Fox Business on Wednesday, claimed Bar Rescue -Gastheer, Jon Taffer, that the massive closures are due to a large number of reasons.
“I think four elements are working against us together,” said the showhost.
“Number one is the consequences of the pandemic,” Taffer said. 'Many restaurants and retailers have debts. They were on the back of Equiptment, and so on from the hole created by the Pandemie. '
The Paramount Network star also suggested that inflation has a lot to do with the widespread closures in the restaurant industry.
Stewart Varney (left) of Fox Business (left) on Wednesday, claimed Bar Rescue -Gastheer, Jon Taffer (right), that the mass closures are due to countless reasons
“I think four elements are working against us together,” said the showhost. “Number one is the consequences of the pandemic,” Taffer said. 'Many restaurants and retailers have debts. They were on the back of Equiptment, and so on from the hole created by the Pandemie '
'Add inflation. All our costs have now been increased, including energy costs, real estate costs, you call it the costs, “Taffer said.
Taffer suggested that a third element – personnel problems – is also the fault of the industrial reduction.
'The third element … personnel problems. It is difficult to find the employee base that we need to serve our customers well, “he said, before he adds the fourth and last element that it works against Restaurantaurs.
“The fourth element, surprisingly, are all diet drugs that people take,” he suggested. “I think people who came in for a meal, now they come in for a starter, that's all they can eat.”
Taffer suggested that those 'four elements' are what is 'heavy' that influences the restaurant activities.
'Icons such as TGI Friday's, Denny's, Ruby Tuesday, these companies are about to submit or have bankruptcy. Red Lobster, it's a shame to see that iconic brands like these are going through such struggles, “he solemnly added.
Taffer, who admitted that he owned a few Hooters locations, believes that the struggle of the company is not all related to the full economy.
'A last thing I could add, Hooters is another that goes bankrupt. I'm not sure if that is so economic. The truth is told that I had a few Hooters years ago, “Taffer started.
“I call it howward Johnson syndrome. When restaurants changed, Howard Johnson still had orange chairs and blue counters, I think Hooters was dated and these effects happened.
'Restaurants must remain up -to -date and remain up -to -date in their economic models. Restaurants that survive today have made a model for the current environment, “he concluded.
The restaurant in Sportbar style is known for its wings and scantily dressed waitresses (photo), is under pressure from current market conditions
Taffer, who was recently renewed hit show for a tenth season and then shared 'The recipe for success' about how to save a struggling company.
'The first thing you do is that you have to concentrate on the customer, not yourself. What can you do to win back that customer? To build that trust to establish a brand. '
Taffer also claimed that 'iconic brands do not last' with younger generations who, according to him, are looking for 'newer' attractions.
“Iconic brands do not go with younger generations,” he said. 'The newer brands tend to get more traction than iconic old brands. You can bring in customers, but you have to work hard on it.
'No apologies, do not blame the economy, do not blame the pandemic. Take responsibility yourself and bring your company together, “said Taffer.
