Red Robin considers closing 70 countries among financial problems

Red Robin is the latest in an increasing number of fast food meals planning to close the subformer countries after a number of financial difficulties.

The chain on Wednesday announced that she is weighing plans to potentially close 70 places after their rent expires, as she tries to return her operations. The company has already closed a location in the fourth quarter of 2024 fiscal, and recorded a loss of $ 32.4 million in the quarter of the “Revision of Depotant Restaurants”.

The company plans to sell three properties during the first quarter of 2025 fiscal. The sale of those countries is expected to generate $ 5.8 million, which the company predicts will be partially used to repay its debt.

While the financial results for the Fiscal 2024 “Rent” the original expectations of the company, CEO GRT HART said the company has made “significant improvements in guest experience” to try and run traffic in its restaurants.

During her profits call last week, Hart told analysts that the company had a 600 basic improvement in traffic trends from the first quarter of the year to the fourth.

But “while our improvement has been considerable, we have not yet reached the potential of our iconic brand and expect to promote further traffic improvements in 2025,” he continued.

Red Robin’s story is not unique. There has been an increasing number of restaurants with the name that have fought after gathering many debts during the pandemia.

The industry expected consumer spending in restaurants to return to pre-landmark levels after things were back to normal. But the fast service sector began to cope with the slowdown of traffic in back-back neighborhoods as customers carefully inflation continued to eat at home more often.

Some companies, such as TGI FrIDAY’S, Denny’s, Ruby Tuesday, Gray coast and Red Rubio, have filed for protection in the bankruptcy court. However, others, including those who did not present for bankruptcy protection, significantly reduced their trail to better position in the current environment.

Wendy’s, for example, announced in November that he was closing 140 subformer seats by the end of 2024 while seeming to improve his “restaurant trail and overall system health”.