Red Robin Gourmet Burgers (RRGB) CL King’s 22nd Annual Best Ideas Conference 2024 summary

Consumer and industry trends

• Consumer sentiment was negatively impacted by the election year and external events, but signs of stabilization and improvement appeared in August and September, with expectations for further recovery post-election and with potential lower interest rates in 2025.

• The restaurant industry experienced a tough summer, with July marking a significant downturn, but performance improved in August and stabilized in September.

• Major events like the Olympics contributed to temporary distractions from restaurant visits.

Competitive and promotional environment

• Promotional activity remains high, especially with fast food chains extending value deals through year-end, making it difficult for casual dining to return to normal pricing.

• Efforts are focused on balancing value with brand stability, using targeted promotions like $10 cheeseburgers on Tuesdays and Monster Mondays to drive traffic without resorting to constant discounting.

• The brand is leveraging its value proposition and experience to compete, rather than mass media campaigns.

Marketing and guest engagement

• Increased marketing spend early in the year led to insights that targeted, local store marketing and digital engagement are more effective than broad media campaigns.

• Local store marketing, PR, and a new loyalty platform are being used to build deeper relationships and drive repeat visits.

• The approach draws on successful strategies from other brands and leverages experienced managers to accelerate adoption.