Red Robin is Closing 35 Stores Due to the Coronavirus

With sales declining over 70% at times in the past month, Red Robin Gourmet Burgers has announced that it will be closing 35 stores temporarily and initiating 20% pay cuts for many employees.

The company also said it will eliminate about 50 restaurant support center positions as of Friday, and it will continue ongoing discussions with landlords about restructuring lease payments.

The moves are being done in an effort to reduce costs during the coronavirus crisis.

This is the second coronavirus-related action the company has taken this month, following a decision about two weeks ago to eliminate non-essential capital projects this year. This includes the expanded co-location of Donatos Pizza into a large number of its restaurants.

CEO Paul Murphy has said that the closings will be mostly in mall-based locations where business has been hit especially hard.

Red Robin operates about 550 stores in the U.S. and Canada.

“We continue to be focused on protecting the health and safety of our team members and guests, and are taking additional actions to preserve liquidity, reduce costs, and better position Red Robin for the long term,” Murphy said in a release. “These include both short- and longer-term initiatives that will enable the company to more effectively benefit from an eventual recovery in on-premise sales as the impact of COVID-19 subsides.”

Disclaimer: We have no position in Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) and have not been compensated for this article.