Red Robin Gourmet Burgers Closes Fast-Casual Prototypes as Part of “Strategic Reevaluation”

Red Robin Gourmet Burgers (RRGB) said Wednesday it closed nine of its Red Robin Burger Works fast-casual prototype stores on Sept. 30 and will rebrand the remaining three as “part of a strategic reevaluation of the company’s alternative fast casual platform.”

The stores were first introduced in 2011 and meant to compete in the fast-growing market between fast-food and casual dining.

Of the remaining Red Robin Burger Works restaurants, two will remain open and be renamed Red Robin Express, and another will be remodeled as part of the rebranding.

The rebranding of the company’s alternative platform as Red Robin Express is intended to further differentiate the smaller, limited-service locations from full-service Red Robin casual dining restaurants, and is expected to be completed in late 2016 or early 2017.

Shares are up more than 1% after having touched a 3.5 year low of $42.95.