Red Robin’s premium gourmet burgers, milkshakes, and bottomless sides aren’t the only fantastic things about it. It’s no wonder that they’ve got a loyal following. If you’re thinking of owning a business, then you’re in for a good start. Their solid brand reputation will back you up. So, what more can you ask for?
Opening a Red Robin franchise requires a significant amount of capital, including a net worth requirement of $1.75 million and a cash reserve of $750,000, for the total investment. This can amount to $1.9 million to over $4 million at the end of the day. It’s definitely a significant financial commitment.
Still curious? This article contains everything you need to make decisions.
The Red Robin Story
From its humble inception as a small tavern to a national chain with over a hundred locations, you can see that Red Robin has come a long way. They’re known for serving tasty gourmet burgers in a warm and welcoming atmosphere, which makes it a great spot for anyone looking for a quality meal with friends or family.
Red Robin has really delivered on customer demands, and over the years, they’ve stood out from the crowd by prioritizing top-notch services and making their operations much easier. In all these, they’ve created a dining experience that’s both welcoming and efficient for all. No wonder they’ve become a go-to spot for folks looking for a great meal.
Red Robin’s business model is also proven in the competitive casual dining market. The restaurant has an engaging environment as people consistently visit, through a delivery of service that meets customer expectations for a remarkable meal adventure.
Red Robin Annual Sales/Revenue
Red Robin’s annual revenue has experienced growth in the past years. Here are some essential highlights:
- 2020: $868.72 million, a decline of 33.94% compared to 2019
- 2021: $1.162 billion, a significant 33.72% increase from 2020
- 2022: $1.27 billion, an 8.94% from 2021
- 2023: $1.30 billion, a 2.96% growth from 2022
- 2024: $1.25 billion, representing a 4.18% decline from 2023
Red Robin’s revenue growth has definitely had its ups and downs. The pandemic and shifting customer preferences can be tough too, but it’s interesting to see how they’ve adapted.
Why You Should Franchise With Red Robin
Here are a few reasons why you should get excited about bringing a Red Robin to your area:
Extensive Burger Menu
Red Robin has a burger for every taste bud. From from classic cheeseburgers to specialty burgers like the Burnin’ Love Burger, loaded with fried jalapeno coins, chipotle aioli, and home-made salsa, or the Southern Charm Burger, made with BBQ sauce, brown sugar-glazed patty, and caramelized onions. If you’re a burger fan, you’d definitely want to check out Sofoody. They also have a variety of sandwiches and wraps. This means that they have nice treats beyond burgers, and customers always come back for more.
Bottomless Sides
Red Robin elevates the burger experience with their bottomless sides. Ordering a burger gets you unlimited free refills on steak fries, side salad, steamed broccoli, or Yukon chips. This adds more satisfaction, and makes your simple order a well-rounded meal. You can even upgrade to bottomless garlic fries or sweet potato fries. With bottomless sides, Red Robin ensures that your meal feels a little special.
Locations
With over 570 locations across the United States and Canada, Red Robin will continue to establish a strong presence, and you can be a part of this. They are a recognizable brand whose widespread existence can be beneficial for potential franchisees, as their reputation and customer base are already in place. Even if you open a Red Robin today, you have already tapped into an established industry as their brand, and this will help you attract customers.
Challenges of a Red Robin Franchise
Red Robin faces several challenges, including the following:
Unhealthy Selections
Red Robin’s menu can be a bit overindulgent, with all those bottomless sides and massive burgers adding up in calories. But customers can have a balance through some authentic guidance on healthier options. This will definitely help a customer make more informed choices. Maybe they can look into grilled chicken or salads, or even customize their meals to fit their dietary needs.
Limited International Locations
Despite being in business for over 50 years, Red Robin’s global presence remains limited, with the majority of its locations in the United States and only a handful in Canada. Anyways, this leaves an opportunity for international growth. It may be possible that Red Robin has strategic plans for global expansion that haven’t been publicly announced yet. However, entering new markets could indeed increase brand visibility and take the company to a better level.
Lawsuits
A proposed class action lawsuit was filed in 2022 by a former employee claiming Red Robin failed to pay certain managers proper wages, including overtime and meal and rest breaks, in California. The lawsuit alleged that assistant managers, assistant general managers, and kitchen managers were misclassified as exempt from overtime and were required to perform non-exempt duties without proper compensation.
Red Robin even agreed to pay $600,000 to settle a lawsuit filed by the EEOC on behalf of female employees who were allegedly subjected to daily sexual harassment. They also settled a $450,000 class-action lawsuit over claims that they sold Stella Artois beer in smaller containers than those advertised. These incidents, though potentially isolated, can tarnish the Red Robin brand over time, impacting customer perception and loyalty, even if they don’t occur at your specific location
Conclusion
Red Robin might be a promising franchise opportunity for entrepreneurs looking to invest in a well-established brand. All you need is careful planning and thorough research. But it’s also essential to carefully review the Franchise Disclosure Document with a legal advisor to understand the obligations, fees, and terms involved in owning a Red Robin franchise.
