A POPULAR dining chain has announced plans to shutter 70 restaurants in the US after bombshell losses last year.
Red Robin has become the latest chain to suffer closures despite bosses noting a 3.4 per cent rise in comparable sales.
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Red Robin reported a net loss of $77.5 million in 2024Credit: Getty
A Red Robin spokesperson claimed at the time the businesses comparable sales were up by 3.4%Credit: Getty
Red Robin is set to close 70 locations within the next yearCredit: Getty
The casual dine-in restaurant chain is set to close 70 locations within the next year and 15 by the end of 2025.
One location closed its shutters for the last time in 2024, after its lease expired and reports say the burger specialists are waiting for its other leases to end before closing additional stores.
The beloved chain currently has around 500 Red Robin chains around the United States and Canada with approximately 80 per cent of them being owed and operated by the company.
Established over 50 years ago, the longtime business reported a net loss of $77.5 million in 2024, over three times the previous year, according to Finance Buzz.
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In the fourth quarter of 2024, the chain reflected net losses of $39.7 million, which was more than it was at the same time back in 2023, which only witnessed $13.7 million in losses.
A Red Robin spokesperson claimed at the time the businesses comparable sales were up by 3.4% and despite this being considered a good sign the chain has been forced to announce closures.
They also claimed 300 locations are performing well under transformation efforts, which they hope will reduce the shock closures.
Bosses at the Red Robin Gourmet Burger Q2 2025 earnings call said its had significantly reduced its debt by approximately $20 million.
Red Robin officials claimed the 70 locations primed for axing have been “under-performing” and accounted for a combined $6 million in earnings losses last year.
The locations on the companies hit list have yet to be revealed: Todd Wilson, executive vice president and CFO claimed eight company-owned locations are slated to shutter their doors before the year is up.
The chain says it has raked in a massive increase in profits in 2025, by paying off their debts and borrowing more than $100 million the previous year.
In a string of axings, an Ohio Red Robin restaurant was closed back in March as well as six company-owned locations and one franchise location.
Red Robin closures were previously set to stretch over several years up until 2030 but it appears bosses have changed their minds, despite a promising year and the addition of new menu items for customers to try.
The beloved chain are known for their bottomless steak fries, with the Royal Red Robin and Whiskey River BBQ burgers being among customer favourites.
This comes after their rival business Red Lobster has announced plans to make a comeback after they filed for bankruptcy.
The beloved chain are known for their bottomless steak fries and Royal Red Robin gourmet burgerCredit: Getty
Red Robin closures were previously set to stretch over several years up until 2030 but it appears bosses have changed their mindsCredit: Getty
Damola Adamolekun, 36, took over as CEO for the seafood chain in August 2024 and says he has big plans for the once-failing restaurant.
They filed for bankruptcy in May 2024 after they incurred $76 million in losses due to an all-you-can-eat shrimp promotion that went awry.
The new CEO is already expecting a positive net income in the 2026 fiscal year.
On the CEO Playbook podcast Damola said: “I think this is going to be the greatest comeback in the history of the restaurant industry,
“Of course it’s risky; I took over a company that’s bankrupt and had a lot of problems.”
Damola has extensive experience in turning companies around.
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In 2020, the CEO took over P.F. Changs, an asian food chain, and helped return the company to profitability.
Under his leadership, the Asian-Fusion food chain began generating $1 billion in revenue.
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