Red Robin is a casual dining restaurant specializing in burgers and a variety of American-style dishes. The franchise offers a diverse menu with customizable options in a fun, family-friendly environment.
Key Insights
- Red Robin began as a small tavern and has grown into a national chain recognized for its casual dining experience and wide selection of gourmet burgers. The business operates over a hundred locations, serving a familiar menu with a focus on quality ingredients and a welcoming atmosphere for families and friends.
- The franchise operates within the restaurant industry, a sector characterized by consumer demand for convenient and enjoyable dining options. The business model emphasizes operational efficiency and customer service to maintain its market presence and appeal to a broad customer base seeking a relaxed dining outing.
- Red Robin offers a tested business model within the competitive casual dining segment of the food service industry. The restaurant environment is designed to be engaging, encouraging repeat visits through a consistent offering of food and service that aligns with consumer expectations for a value-driven meal experience.
Franchise Fee and Costs to Open
Exploring the financial picture of Red Robin gives insight into both the upfront commitment and the potential revenue opportunity. According to FDD Item 7, opening this franchise typically involves an investment in the range of $2,705,000 - $5,785,000, along with a franchise fee of $35,000 - $35,000.
Financial Performance and Revenue
Yearly gross sales of $3,097,311 and estimated earnings of $371,678 - $464,597 show the potential financial performance of this franchise. These figures are crucial for prospective franchisees as they help to project revenue and profitability. They offer insight into the business's ability to generate income and can be used to compare its performance against other investment opportunities. The Franchise Payback Period of 10.7-12.7 provides an estimation of the time it might take for an owner to recover their initial investment. This metric is a key consideration for anyone evaluating the financial viability of a franchise, as it relates directly to the speed at which the business can become profitable. A shorter payback period can indicate a faster return on capital, which is a significant factor in making an informed decision about a franchise investment.
Training and Resources
Red Robin provides new franchisees with a comprehensive training program. This initial training, lasting two weeks, is conducted at Red Robin University in Denver, Colorado. Red Robin offers extensive resources and operational guidance to support franchise partners. Red Robin recommends leveraging these tools for a smooth business launch.
Legal Considerations
Legal considerations for a Red Robin franchisee are outlined in the Franchise Disclosure Document (FDD) and the Franchise Agreement. Note that this franchise discloses lawsuits and/or bankruptcy information in its FDD, which may impact your evaluation. Subscribe now to access more details and be sure to consult a qualified attorney before proceeding.
Challenges and Risks
Operating a franchised restaurant like Red Robin presents considerations around intense local market competition, requiring a focus on differentiation and customer loyalty. The operational complexity of maintaining consistent quality across a diverse menu, managing a sizable staff, and adhering to brand standards demands meticulous attention to detail. Furthermore, reliance on specific supply chains for proprietary ingredients means vulnerability to disruptions or price fluctuations impacting profitability.
Franchise Datasheet
FAQs
What is the minimum cash required to open a Red Robin franchise?
How can I estimate the profitability and return on investment (ROI) of a Red Robin franchise?
What is the franchisee fee for a Red Robin franchise?
How to open a Red Robin franchise?
How many locations does Red Robin have?
Get insider access to franchise insights
Subscribe to receive expert tips, franchise rankings, and exclusive data straight to your inbox, trusted by thousands of aspiring business owners and investors.
Franchise resources & insights
Explore expert guides, data-driven articles, and tools to help you make smarter franchise decisions, whether you're just starting out or ready to invest.
