The animator of “Bar Rescue”, Jon Taffer, weighs on restaurants depositing the bankruptcy and his renewed program for his tenth season.
Red Robin is the last of an increasing number of fast food restaurants which plan to close sub-performative locations after a series of financial difficulties.
The chain announced Wednesday that it weighed plans to potentially close 70 locations once their lease expires, while it tries to overthrow its operations. The company has already closed a location in the fourth quarter of the fiscal 2024 and recorded a loss of $ 32.4 million in the quarter largely from “examination of sub-performative restaurants”.
The company plans to sell three properties during the first quarter of the year 2025. The sale of these locations should generate $ 5.8 million, which, according to the company, will be used in part to reimburse its debt.
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While the financial results of the 2024 fiscal year “fell well below” of the company’s initial expectations, CEO GJ Hart said that the company had made “substantial improvements to customer experience” to try to bring traffic back to its restaurants.
A Red Robin restaurant in Troy. The chain has more than 500 locations in America. (/ istock)
During his call for results last week, Hart told analysts that the company had seen an improvement of 600 basic points of trend trends in the first quarter of the year in the fourth.
But “although our improvement has been substantial, we have not yet reached the potential of our emblematic brand and we expect to cause new traffic improvements in 2025,” he continued.
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The story of Red Robin is not unique. There have been an increasing number of homonymous restaurants that had trouble after accumulating too many debts during the pandemic.
The industry expected that consumer expenditure in restaurants return to pre-pale levels once things have returned to normal. But the fast service sector began to slow traffic in consecutive neighborhoods while inflation consumers continued to eat at home more often.
A Red Robin restaurant in San Jose, California. (Nicolas McComber / Getty Images)
Some companies, such as Tgi Friday’s, Denny’s, Ruby on Tuesday, Rubio’s Coastal Grill and Red Lobster, filed a request for protection before the bankruptcy court. However, others, including those who have not filed a protection against the balance sheet, have considerably reduced their footprint to better position themselves in the current environment.
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Wendy, for example, announced in November that it was Closing 140 underperforming locations Until the end of 2024, while he seemed to improve his “restaurant footprint and his overall system of the system”.
