If you were to make a list of countries with the longest burger tradition, the United States might appear at the top. Statistics indicate that there are 84336 restaurants across the country, although the figure will soon be lowered by sad news: Red Robin Gourmet Burgers has already closed six of its own restaurants in the first quarter. Due to the business crisis that many fast food chains in the United States are going through, shop closures are taking place. It is a before and after for the burger chain. Read on for all the details.
Closing eight shops, as announced by Todd Wilson
One franchised location; now, the company plans to close eight more company-owned shops within the year, as announced by Todd Wilson, executive vice president and chief financial officer. It must be stressed that this is a complicated decision that is not easy to manage.
Records compiled by experts indicate that the number of burger outlets in the USA grew by an average of 0.9 % per year between 2019 and 2024. This indicates that competition is high but also that demand is growing slowly. However, some firms are impacted by the number of competitors in the market. This situation is unavoidable when there is a large variety of competitors within the sector.
All you must know about what Wilson explained
In the last few hours, Wilson said that Red Robin currently has 401 company-owned restaurants and 90 franchised restaurants. That number is expected to be reduced to 393 company-owned restaurants by the end of the year. Wilson did not specify which locations are slated for closure, nor did he mention plans to close more franchises, at least in the immediate future. This raises alarm bells for workers, as they do not know how the new situation may affect their lives.
This comes on the heels of a series of hierarchical changes. In April, Red Robin appointed David A. Pace as its new president and chief executive officer. And in an effort to raise expectations for what lies ahead, they commented that the chain is making a ‘comeback’, but has not yet reached its peak sales. ‘We are far from declaring victory and there is still work to be done as we continue Red Robin’s comeback journey,’ Pace said.
A smile amid all the commotion
Amidst the moves, customers have reason to smile. The reason? Wilson said no additional menu price increases are expected by 2025. ‘We anticipate absorbing the expected impact of current tariffs as we prioritise maintaining value for our customers,’ he said. In the same earnings report, Red Robin also reported an unexpected profit, which is a good sign for the company.
The ranking of the best burger chains in the US
According to IBIS World data, there are 84,486 burger restaurants operating in the United States and, surprisingly, around 25% of these restaurants belong to one of the two dominant chains in the country: McDonald’s and Burger King. However, based on amateur and professional reviews from a variety of sources, these two locations do not top the ranking of the best burger joints.
One of the top-rated burger chains, Five Guys, was voted number one by Connecticut, Georgia, Montana, Nebraska, Oregon, South Carolina, Vermont and West Virginia. A close competitor to Five Guys would be Steak n’ Shake, which was voted the number one burger restaurant by 7 states: Alabama, Delaware, Michigan, Nevada, Ohio, Rhode Island and Tennessee.
McDonald’s was ranked as the top burger chain in 6 states: Idaho, Indiana, Maryland, New Hampshire, New Jersey and Washington. In-N-Out was the number one burger chain in 3 states: Arizona, California and Utah.
It should be emphasised that restaurant closures are taking place in a wave of instability and also at a time when the fast food market is very diverse and it is very challenging to stay in business.