John Tafar, hosting ‘Bar Rescue’, weighs a restaurant filing for bankruptcy and his show has been renewed for its tenth season.
Red Robin is the latest in the increasing number of fast-food eateries Shutter underperforming location After a part of financial difficulties.
On Wednesday, the series announced that it plans to potentially shut down 70 places after it ends at its lease, as it attempts to turn on its operation. The company has already closed a location in the fourth quarter of FY 2024, and has recorded a loss of $ 32.4 million in the quarter in large parts from the “underperforming restaurant review”.
The company plans to sell three properties during the first quarter of FY 2025. The sale of places is expected to generate $ 5.8 million, which the company estimates that it will be used to repay its debt.
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While the financial results for FY 2024 “fell below the basic expectations of the company”, CEO GJ Heart said the company has made “sufficient improvement in guest experience” to bring back traffic to its restaurant.
The Red Robin series has more than 500 places in the US. ( / istock)
During its earnings last week, Hart told analysts that the company saw 600 base-point improvements in the traffic trend from the first quarter of the year to the fourth.
But “While our improvement has been enough, we have not yet reached the capacity of our prestigious brand and hope to run further traffic reforms in 2025,” they continued.
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The story of Red Robin is not unique. The number of struggling name restaurants has increased after depositing a lot of loans during the epidemic.
The industry hoped that things would come back once after returning to consumer expenses in restaurants to pre-political levels. But Accelerated service sector Started slowing the traffic in the back-to-back quarters as inflation-serious consumers continued to eat more often at home.
San Jose, a red robin restaurant in California. (Nicholas McCopper / Getty Images)
Some companies like TGI Friday, Denny, Ruby Tuesday, Rubio’s coastal grille and Red Lobster have filed for security in bankrupt court. However, others, including not filed for insolvency conservation, significantly reduced their footprints to keep themselves in better positions in the current environment.
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For example, Wendy announced in November that it was Closing 140 underperforming places Through the end of 2024 because it improves its “restaurant footprint and overall system health”.
