The Fan-Favorite Burger Chain That's Closing Stores In 2025

Recent history hasn't been the best of times for chain restaurants. Hooters is considering bankruptcy due to low foot traffic and high debts, and even Wendy's closed hundreds of underperforming stores. Both of these eating-out upheavals are happening in the shadow of very public struggles with debt, declining sales, and bankruptcy lost by Red Lobster and TGI Fridays. Now, beloved burger chain Red Robin also has some store locations on the chopping block.

Red Robin CEO G.J. Hart announced the closure plan in the February 2025 earnings call discussing Red Robin's fourth-quarter 2024 earnings. Per Hart, Red Robin is considering closing 70 locations out of the chain's near-500 stores in an effort to free up money for debt repayment, as well as stem about $9.5 million in cash burn.

The locations Hart and the Red Robin team are evaluating for closure are considered underperforming stores, and rather than immediate closure, Hart says underperforming store leases ending over the next five years simply won't be renewed. Based on that framework, Hart says Red Robin expects to close 10 to 15 of its underperforming locations in 2025. The remaining closures will most likely be on a rolling basis, per lease conclusion, through 2030 — unless, of course, Hart adds, there are ideas on how to speed the process. Location names for closing stores, or stores in danger of closing, is not yet publicly known.

Hart still sounds optimistic about the Red Robin burger brand's health despite the closure plans. "We believe the expected closure of a majority of these restaurants will allow the strength of our remaining portfolio to become clear over time and free cash that we expect to reinvest in the business," he told listeners on the Q4 2024 earnings call.

While many CEOs might paint a verbal veneer of success on a sinking ship, Hart's sunny outlook doesn't come without careful consideration. Hart steered roadside casual dining chain Texas Roadhouse through its 2004 initial public offering as well as taco chain Torchy's through the lockdown era of the COVID-19 pandemic. Starting with Red Robin in 2022, Hart is also in the thick of leading Red Robin through a years-long turnaround under his "North Star" revitalization plan.

Hart is a CEO known for being a comeback kid. Red Robin might be one of his juiciest success stories, if the reinvestment he has planned in the company continues to play out according to plan. While the Q4 2024 call did feature some Red Robin store closure announcements as well as lackluster earnings improvements, it highlighted the success the North Star plan has had in revitalizing the guest experience at Red Robin.

Since 2017, customer experience scores at Red Robin had been tanking, in part due to poorly-planned cost-cutting measures. The 2025 call, however, called out improved guest experiences as a result of reinstated roles, better training, and better product. It's increasingly rare to see a reinvestment story generate success the old-fashioned way, without fully pivoting to premium services or opening a beloved brand up to the perils of private equity. And it might eventually pay off for Red Robin.

The Q4 2024 call demonstrated that same-store sales are experiencing the benefits of reinstated table busser positions, kitchen manager roles, and overall improved operational efficiency. This, combined with a revamped rewards program, higher-quality food offerings, and a focus on bringing value to guests with "bottomless" sides, inexpensive upgrade deals like "Monster Mondays" or family-friendly $10 burger pricing on Tuesdays, is proof in the pudding enough for Hart to press on with his "North Star" plan. Per the call, Hart seems satisfied that the company's hard work is driving repeat visits to their neighborhood stores, and will, in turn, drive overall success.

Consumers feeling consumed by inflation and wage stagnation aren't exactly rushing to buy pricey meals out when they've already found creative ways to save on groceries and have well-stocked, money-saving pantries at home. They certainly won't return to establishments to have a bad time while paying for the privilege. While it remains to be seen if Red Robin will be forced to close as many underperforming stores as needed to continue to dig themselves out of earlier dark days, in the meantime, higher-performing stores might just keep family burger night moment in their sights.