When you hear “bottomless fries”, does it remind you of anything?
Red Robin (which started as “Sam’s Tavern”) originated in Seattle in the 1940s and rose in popularity in the 1970s and beyond.
Today, there are just under 500 Red Robin locations nationwide, but that number might be changing soon…
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Before we go into the details of the potential Red Robin closures, let’s look at how Red Robin stacks up against other popular burger joints like McDonald’s, In-N-Out, and Five Guys.
According to a food columnist from The Los Angeles Times, Red Robin didn’t even make the list of the “fast-food burger power rankings”, while In-N-Out ranked #5 out of 23 and Five Guys #8. (McDonald’s was #4.)
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Out of the roughly 500 locations across the United States, California has the most locations with 57 restaurants (around 12% of the total locations).
Red Robin has locations in 39 states, so one of the upcoming closures might even impact you…
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Earlier this year, Red Robin announced the plan to potentially close as many as 70 Red Robin restaurants. It had already closed one location during the fourth quarter of the fiscal year as losses increased and revenue decreased.
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Red Robin says that a big reason for the deficit is “underperforming restaurants”. These underperforming restaurants are at the greatest risk of being closed. Areas with multiple Red Robin locations might also see some consolidation of the locations, but it’s hard to say exactly until everything is finalized.
Do we know of any stores slated to close their doors, and when?
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Red Robin hasn’t announced any sort of list of stores that could be closed. However, they plan to close 10-15 locations this year alone, with the remaining closures happening over the next five years as some of the buildings’ leases expire.
Is this a sign of troubled financial waters for the chain?
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Many restaurants took on a lot of debt during the pandemic from reduced traffic and sales. Some were never able to bounce back, leading to the closure of many smaller chains and businesses.
Let’s look at some of the factors impacting Red Robin’s financial woes.
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Besides the potential debt from the pandemic, other factors are likely at play here, too.
Increasing labor costs are a big one.
In California alone, minimum wage increased on January 1, 2025, to $16.50 an hour, up from $12 an hour in 2020. At the same time, inflation has risen from 1.2% in 2020 to 2.4% in 2025, which impacts things as well…
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According to Yale University’s Budget Lab, food prices are estimated to rise 2.8% overall due to recent tariffs, including a 4% increase for fresh produce.
That means that Red Robin is having to pay its employees more AND pay more for ingredients. That’s not even considering consumer spending habits.
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People are spending less on non-essential goods these days. According to the results of a poll of 2,500 adults by Bankrate, the majority (54%) said they’ll spend less on luxuries like travel, dining, and things like live concerts and other entertainment.
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Since 2024, several notable restaurants have filed for bankruptcy, such as Red Lobster, TGI Fridays, and Hooters.
Closing 70 stores would equate to approximately 15% of Red Robin’s locations nationwide, which is a significant number.
Only time will tell if closing the underperforming stores will help turn things around…
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For this year, expect to see around 10-15 Red Robin locations closing. That number could increase even more (around 70 total) within the next five years.
What would you do if a Red Robin near you closed? What’s your experience been with Red Robin compared to other burger joints? Let me know in the comments!
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