Host “Bar Rescue” Jon Taffer is measured by restaurants who have signed up for bankruptcy, and his show has been renovated for his tenth season.
Red Robin is the latest in increasing numbers planning fast food Prisoners of the location of weak performance following a series of financial difficulties.
The chain announced on Wednesday that the scales of plans to potentially close 70 locations after their lease expires because it tries to turn its business. The company has already closed one place in the fourth quarter of the Fiscal 2024, and recorded a loss of $ 32.4 million in large part of the “overview of weaker restaurants”.
The company plans to sell three properties during the first quarter of the Fiscal 2025. The sale of these locations is expected to generate $ 5.8 million, which the company predicts that it will be used partly to repay its debt.
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While the financial results for the Fiscal 2024 “fell significantly below the” original expectations of the company, the CEO of GJ Hart said that the company made “significant improvements in the guest experience” to try to bring back traffic to its restaurants.
The Red Robin chain has over 500 locations in America. ( / East)
During his invitation to earn earnings last week, Hart told analysts that the company recorded a improvement of traffic trends from 600 points from the first quarter to the fourth.
But “Although our improvement was significant, we still have not achieved the potential of our iconic brand and expect to encourage further improvements of traffic in 2025,” he continued.
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The story of Red Robin is not unique. There are a growing number of nameski restaurants that fought after accumulating too much debt during the pandemic.
The industry expected the consumer consumer consumer to return to the level before the pandemic after things returned to normal. But fast service sector They began to deal with slowing traffic in neighborhoods backwards, as inflation consumers are still more frequent at home.
Restor Red Robin in San Jose, California. (Nicolas McComber / Getty Images)
Some companies, like TGI on Friday, Denny’s, Ruby on Tuesday, Rubio’s coastal barbecue and Red Lobster have filed a request for a bankruptcy court. However, others, including those who did not apply for bankruptcy protection request, significantly reduced the mark to better position themselves in the current environment.
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Wendy, for example, announced in November that closure 140 locations of weak effects At the end of 2024, how it looks like to improve your “restaurant rest and overall system health”.
