Red Robin Retreats From Fast-Casual Dining
October 05 2016 - 11:00AM
Dow Jones News
Red Robin Gourmet Burgers Inc. is learning that there is nothing
fast—or easy—about breaking into the highly competitive market in
fast-casual dining.
The company on Wednesday said it had closed nine of its
fast-casual prototype stores and would rebrand the remaining three
as it re-evaluates its plans to meet demand for carry out and
delivery.
The stores, called Red Robin Burger Works, were first introduced
in 2011 and meant to compete in the fast-growing market that
typically sits between fast-food and casual dining when it comes to
price and quality.
"We've gained considerable knowledge since opening the first of
our smaller, fast casual locations in 2011," Chief Executive Denny
Marie Post said. "We are now conducting a strategic review of how
this alternative platform can better support our brand as a
whole."
Fast-casual chains, which include burrito behemoth Chipotle
Mexican Grill Inc. and burger-chain Shake Shack Inc., typically
don't offer table service but provide a more limited selection of
higher-quality, fast-turnaround food, often perceived as
healthier.
Red Robin, based on Greenwood Village, Colo., said the prototype
stores, which included locations in Chicago and Washington, D.C.,
allowed it to develop locations in nontraditional, high
foot-traffic locations in downtowns, stadiums, military bases and
airports. The typical Red Robin Burger Works location had about 45
seats, well below the 200 seats many of its full-service
restaurants have.
The three locations that will remain open will be rebranded Red
Robin Express in order to differentiate the smaller,
limited-service locations from the full-service Red Robin
restaurants
As of July, the company operated 449 full-service
restaurants.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
October 05, 2016 10:45 ET (14:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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