This Struggling 1960s Burger Chain Has Good News Despite Closing More Restaurants
Headlines often don't tell the full story, and that's certainly been the case with the widely reported Red Robin restaurant closures. On the surface, such news represents failure and struggle, especially in light of the other big chain restaurants that have closed in 2026 so far. But for Red Robin, these closures are part of a bigger plan — one that appears to be working in its favor.
Red Robin has struggled to rebound since the COVID-19 pandemic. After its initial "North Star" comeback plan in 2023, the chain kicked into high gear in July 2025 with its new "First Choice" plan. Aimed at positioning the burger chain as the top choice among customers, employees, and investors, the chain has focused on closing underperforming locations and leaning into franchising.
Aside from closing about 70 locations and franchising an additional 30 since the plan launched in 2025, Red Robin has sold over 100 of its restaurants and earned millions of dollars. It also successfully repaid over $20 million of its debt. While it might be unsettling for customers, such restructurings are common — for example, last year Starbucks closed stores as part of a $1 billion restructuring plan.
As Red Robin sticks to its restructuring plan, the chain's earnings have increased
What Red Robin set out to do with its "First Choice" strategy seems to be working so far. Its sales have rapidly increased earnings in 2025, and its stock value experienced a big boost in early 2026. Initially, the company planned to close 70 more restaurants in 2026, but after the success, 20 locations were taken off the axe list. There's no definitive number for how many Red Robin locations are expected to close in the near future, though, as the chain continues to review its performance.
For now, Red Robin continues to prioritize customer value and operational efficiency. People are searching for more affordable menu options, so it rolled out the Big Yummm value meals priced at $10 in early 2026. This had the desired effect, as Red Robin is one of the most affordable sit-down chain restaurants in 2026, according to customers. It also invested in targeted advertising rather than general campaigns, but only time will tell how the chain's restructuring plan will pan out.