Dive Brief:
- G.J. Hart, Red Robin’s CEO and president since September 2022, has stepped down from his post effectively immediately. He will be replaced by David Pace, Red Robin’s board chairman, according to a press release.
- Hart will continue to serve as an advisor for the brand until September, and will continue serving on various company boards and as a mentor for restaurant leaders, the release said.
- Hart led Red Robin through the opening phases of a “North Star” reinvention plan, which was first announced in January 2023. Despite this strategy, the chain, like much of casual dining, has struggled to generate sales momentum and is in the process of closing unprofitable stores.
Dive Insight:
Pace has served as Co-CEO of Tastemaker Acquisition Corporation, a special purpose acquisition company in the restaurant and hospitality tech sectors, and as CEO of Jamba Juice.
Pace said the company was planning to “enhance our marketing approach and re-invest in our facilities to increase guest engagement and grow traffic.”
According to the press release, Red Robin expects its same-store sales to increase by 3%, which would be a strong performance for the casual dining segment. Hart attributed this projected strength to the structural reforms undertaken through the North Star plan.
“We have made important strides in strengthening the essential foundation of great food and great service,” Hart said. “With key elements of the North Star plan now in place and as we close the books on another quarter of strong financial performance in the first quarter, we have reached a natural inflection point in Red Robin's transformation.”
The major changes under the North Star plan, according to the chain’s most recent filing with the U.S. Securities and Exchange commission, included a devolution of decision making to the unit level; rewarding operators for performance; investments in food quality and cooking equipment; reworking the menu; optimizing the supply chain; emphasizing and developing new methods of guest engagement, including a new points-based loyalty program; and regaining credibility with investors.
