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The chain is working to preserve cash. Restaurants have closed suddenly without notice to customers. Most closures are happening as leases expire. There’s a reason that so many celebrity chef, Bobby Flay, Gordon Ramsay, and Guy Fieri to name three, have hamburger chains carrying their names. The hamburger is arguably the ultimate American food, but delivering the perfect hamburger has remained elusive. The late Anthony Bourdain summed up what chefs should be striving for. “In a perfect world,” Bourdain said, “you should be able to eat a hamburger with one hand and get a representative chunk of all of the elements,” Tasting Table shared. Bourdain also believed that simplicity mattered. “There’s a tectonic slide that occurs when you start to over complicate and add other products,” the television host and chef noted. Few people agree on what makes the perfect burger and that has led to an explosion of restaurants trying to perfect the art. It’s a challenging space to operate in and one national chain has decided to make major cuts to its restaurant base in order to keep the overall chain healthy. Hamburgers are an American obsession Americans consume an estimated 50 billion hamburgers per year. That works out to roughly 150 hamburgers per person per year in the U.S., which is about 3 burgers per person per week. Source: Welly Consumption varies by U.S. state: for example, in one study Oklahoma averaged about 267 hamburgers per person annually, while West Virginia averaged around 171. Source: Global Issues Burger‑consumption is a major component of beef usage in restaurants: about 71% of all beef consumed in U.S. restaurants is in the form of burgers. Source: Burger Web Red Robin is closing restaurants Red Robin has been struggling financially. To solve that, the chain is being aggressive in managing its restaurant portfolio. “During the fourth quarter of fiscal 2024, the Company closed one restaurant location upon expiration of the lease and is evaluating alternatives for approximately 70 underperforming restaurant locations, including closure upon expiration of the current lease term,” the company shared in its fourth-quarter earnings release. The chain’s profitability has improved although sales have dropped. More Restaurants Scandals force fast-food chain to close dozens of restaurants 30-year-old pizza chain closes all restaurants except one Texas Roadhouse rival shuts down several restaurant locations Total revenues are $676.1 million, a decrease of $12.6 million. Comparable restaurant revenue increased 0.4% including recognition of deferred loyalty revenue. Excluding deferred loyalty revenue, comparable restaurant revenue increased 1.3%. Net income is $5.2 million, compared to a net loss of $18.9 million last year, a $24.2 million increase. Adjusted EBITDA is $50.3 million compared to $27.0 million last year, an 86% increase. Repaid $20.3 million of debt. Source: Red Robin second-quarter earnings release CEO Dave Pace said the company was achieving its financial goals. “Our strong second quarter financial performance provides us with the capital flexibility to accelerate our First Choice plan investments while maintaining our profitability targets. While we have significant work ahead to complete the comeback of this iconic brand, the early execution of our First Choice plan gives me tremendous confidence in our ability to make Red Robin the first choice for guests, team members, and investors,” he shared. Red Robin has work to do The challenge for Red Robin is making changes while also preserving its cash position. As of July 13, 2025, Red Robin had outstanding borrowings under its credit facility of $169.2 million, a reduction of $20.3 million from year end fiscal 2024. Liquidity was approximately $61.9 million, including cash and cash equivalents and available borrowing capacity under the credit facility. That’s an improvement of about $11 million in available cash since the end of the year. The chain faces a challenging operating environment. “When it comes to burger joints, there is a real over‑saturation. People have so many dining options to choose from. There’s also a movement to healthier food options beyond burgers.” Jan Jones, professor of Hospitality & Tourism at the University of New Haven told CTInsider. The chain has made some strides toward hitting its financial goals. “The company reported significant improvements in labor cost efficiency and guest satisfaction scores. These operational changes have been positively received by guests, indicating a successful strategy in enhancing customer experience,” shared TipRanks, Red Robin closures FAQ
