Red Robin Ramping Up Value Deals

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Red Robin's value offerings are bottomless, like its sides and drinks. New bargain deals will soon hit Red Robin's menus to provide consumers a much-needed price break and boost sales.

Beginning in August, Red Robin restaurants will offer a new Happy Hour package with liquor savings. In the fall, the burger company will test lunch specials at its 500+ sites.

The Red Robin executive team is hoping that the value-focused approach will be noticed by customers and contribute to the buzz that the $10 Gourmet Meal Deal has been creating since it was introduced in late June.

The meal package, which includes a drink, endless steak fries, and your choice of the Banzai, Whiskey River BBQ, or Red Robin Gourmet Cheeseburger, has enhanced customer value perception and orders.

The business believes the addition of this new menu item to the lineup helped explain the 4% sales growth seen at the start of Q3—a solid return following a poor conclusion to Q2.

Rising inflation and the industry-wide reduction in casual dine-in traffic, according to Red Robin, were to blame for the subpar Q2 results.

The prevalence of delivery and takeout choices has persisted across the board, and many well-known restaurants, notably Shake Shack in New York City, have had difficulty attracting consumers after the pandemic.

Murphy expressed confidence that Red Robin's distinct market positioning and these new collaborations will provide the burger business an advantage over its rivals despite these setbacks.

To draw customers to Red Robin locations, fresh offerings like the current Happy Hour and impending lunch specials are being made.

However, the business has also instituted a price rise of more than 2% and is promoting its more expensive limited-time menu items in order to preserve acceptable profit margins.

The Smokehouse Brisket Burger, Pineapple Upside-Down Cake Milkshake, and Tequila Sunset Cocktail were among the limited-time specials that saw record-breaking sales in Q2.

The Savory Steakhouse Burger, Loaded Baked Potato Fries, a Pumpkin Spice Milkshake, and two alcoholic beverage choices are presently available as summer promotions.

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