Why Red Robin is struggling today and caught in a downward sales spiral involves a number of issues. It's time to investigate what's going on with this burger mainstay and find out what they're doing to put their beef back on the business track. Here are some of the real reasons Red Robin is struggling to stay open. Red Robin had a tough time getting people in the door and into its booths in 2018. In fact, its dine-in traffic for the year was down 4.2 percent. Red Robin's CEO and president Denny Marie Post said the decline in dine-in customers was certainly the biggest issue facing the company, but some locations were feeling that hurt even more than others.
The dine-in decline was particularly apparent when it came to the company's mall locations, where sales were down 5.5 percent versus only a 3.6 percent drop in non-mall restaurants. Post added that those locations accounted for about 16 percent of their base, and that's a big problem. Is there a solution? Post has said:
"We continue to focus on improving the performance of certain challenged mall locations [...]. We've seen this get worse now three quarters in a row…. [the decline] has us looking with greater urgency at that element of our portfolio."
Long wait times
No one wants to wait 20 minutes for a table and another 20 minutes for their meal. Red Robin's wait times have increased and it's driving away the company's potential dine-in customers and sending them off to find their burger fix elsewhere.
Watch the video to find out the real reason why Red Robin is struggling to stay open!
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Mall locations are failing | 0:16
Long wait times | 1:01
Technology problems | 1:51
Fast food burgers are getting better | 2:49
Dissing vegetarians backfired | 3:39
Successful marketing has been tough | 4:33
Unhealthy burgers | 5:41
The bargain deals weren't good for profits | 6:21
Health scares are never good | 7:12
Refocus and regroup | 8:13
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