{"id":204981,"date":"2025-04-25T15:27:21","date_gmt":"2025-04-25T15:27:21","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/finance\/struggling-hamburger-chain-closing-restaurants-makes-big-change\/"},"modified":"2025-04-25T15:27:21","modified_gmt":"2025-04-25T15:27:21","slug":"struggling-hamburger-chain-closing-restaurants-makes-big-change","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=204981","title":{"rendered":"Struggling hamburger chain closing restaurants makes big change"},"content":{"rendered":"


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If you really want to know how the economy is doing, don’t look at Wall Street. Instead, look at Main Street, at those coffee and donut shops, burger joints, and delis.\u00a0<\/p>\n

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When times get tough financially, as they have for millions of Americans lately, eating out is one of the luxuries people cut first.\u00a0<\/p>\n

Related: A Michelin Star is apparently the kiss of death for many restaurants<\/a><\/strong><\/p>\n

And the data shows people are cutting back on meals away from home. In fact, a majority of restaurant owners (63%) said their same-store sales declined in February after a robust January, according to the March report from the National Restaurant Association.<\/p>\n

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Red Robin is known for its burgers and endless baskets of fries.<\/em><\/p>\n

Image source&colon; Shutterstock<\/p>\n<\/figcaption><\/figure>\n

Dining out is becoming a luxury<\/h2>\n

Even though the rate of inflation is slowing down, for now, consumers are still wary, especially since the cost of staples like eggs, meat, and cereal is still high.<\/p>\n

Food prices rose 1.2% over the past year, with significant increases in beef (+3.0%), dairy (+2.5%), and cereal (+2.0%), according to the Bureau of Labor Statistics<\/a>. The cost of groceries has been inching up continually for several years, and 2025 will likely see an addition 2.2% increase, according to the\u00a0USDA\u2019s Food Price Outlook<\/a>.<\/p>\n

Related: Whole Foods location closed indefinitely for sickening reason<\/a><\/strong><\/p>\n

Some restaurants are looking for creative ways to get more people through their doors. Take Red Robin. The\u00a0family-friendly burger joint\u00a0recently announced an astonishingly good deal: the $20 “Burger Pass.”\u00a0<\/p>\n

For $20, customers could eat a burger and fries every day for the whole month of May. The offer was so popular it quickly overwhelmed and then crashed the company’s website before selling out.\u00a0<\/p>\n

Family-friendly burger chain closing locations, changing leadership\u00a0<\/h2>\n

The Burger Pass was another effort by the company to reinvigorate itself. Two years ago the company announced a plan to update the brand, calling it a “North Star” reinvention plan. But equipment updates, intense staff training, and an expanded menu haven’t delivered the results the company hoped for.\u00a0<\/p>\n

Now the CEO who launched the North Star plan, G.J. Hart, is stepping down, effective immediately. Hart took the CEO role in 2022; in\u00a0fiscal 2024, Red Robin saw a net loss of $77.5 million, up from $21.2 million in fiscal 2023.\u00a0<\/p>\n

Hart will be replaced by Board Chairman David Pace but will remain in an advisory role until September, according to a company statement.\u00a0<\/p>\n

“It has been a privilege to lead such an iconic brand over the last two-and-a-half years. Together we have made important strides in strengthening the essential foundation of great food and great service, and I look at our progress with immense pride,” Hart said in the statement.\u00a0<\/p>\n

More Food News:<\/strong><\/p>\n