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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