Red Robin Crafts Catch-Up Strategies

February 12, 2016

Red Robin Gourmet Burgers & Beers calls its ongoing remodeling effort a “Brand Transformation,” but the transformation is encountering a few negative side effects. For Q4, the chain reported a 4.6% decline in customers, which a 2.6% increase in average check (1.9% from price) couldn’t cover, resulting in a 2% decrease in same-store sales for the quarter. Additionally, upscaling the menu has led to a 55-minute ticket time for the average order, hurting service times, table turns and dining room efficiency. Finally, while Red Robin concedes it has fallen behind casual-dining competitors in value marketing, to-go sales and alcoholic-beverage sales.…