A popular hamburger chain is joining the long list of restaurants facing closures in 2025.
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By the end of the year, 10 to 15 Red Robin locations are expected to close, with a total of 70 locations being considered for shuttering over the next five years.
The decision to close these locations followed a review of the company’s operations. According to Finance Buzz, the hamburger chain reported a net loss of $77.5 million for 2024, a significant increase from the previous year’s $21.2 million loss. The fourth quarter of 2024 alone accounted for $39.7 million in net losses, which was also substantially more than the same time period in 2023, which only saw $13.7 million in losses.
Despite Expected Closures, the Hambuger Chain Saw Signs of Improvement This Year
However, a Red Robin spokesperson noted some positive signs. The company saw a 3.4% increase in comparable restaurant sales and improved customer traffic in the fourth quarter. The spokesperson also mentioned that over 300 locations are doing well with recent changes, which could mean fewer closures than anticipated.
During its Q2 2025 earnings call, the company also reported reducing its debt by about $20 million.
The restaurant chain is considering closing 70 locations over the next five years. However, this could change based on future performance, according to a spokesperson. The closures will target underperforming locations, but a final list has not yet been released.
Currently, the plan is to allow the leases for lagging locations to expire without renewal.
The chain expects 10-15 locations to close by year-end. In a May earnings call, Todd Wilson, executive vice president and chief financial officer, stated that eight more company-owned locations would also close this year.
According to Wilson, the company currently has 401 company-owned restaurants and 90 franchise locations. By the end of the year, the number of company-owned restaurants is expected to drop to 393.