Red Robin shifts from discounts, virtual brands to focus on profitability – Nation’s Restaurant News
Red Robin’s comp sales and total revenues declined in Q3 as the company shifted away from deep discounts and sunsetted its virtual brands.
Red Robin’s comp sales declined by 3.4% in Q3, while total revenues decreased by $9.2 million versus Q3 2022. Despite the drop, these results were in line with expectations as the company moves away from deep discounting activity that hindered profitability. And it’s all part of CEO G.J. Hart’s “North Star” five-point plan put into place last year shortly after he came out of retirement to lead the brand.
“In the second half of 2022, Red Robin promoted a combo meal deal … for a 30% to 40% discount to retail prices,” Hart said during the company’s earnings call after market on Wednesday. “This promotion drove traffic and sales, but the economics were penalizing to profitability.”
Related: Red Robin is in the ‘second or third inning’ of its comeback plan
The North Star plan is multifaceted, but one of its major focuses is shifting away from deep…
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