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David Pace, a seasoned restaurant executive with a resume including leadership roles at Jamba, Carrabba’s Italian Grill, and Bloomin’ Brands, officially transitioned from his role as Red Robin’s board chair to its Chief Executive Officer in late April 2025. Having served on the board for nearly 2,000 days, Pace was intimately familiar with the "North Star" turnaround plan initiated by his predecessor, G.J. Hart. However, as the casual dining sector faced intensifying headwinds in 2025, Pace recognized that the brand needed to move beyond foundational repairs toward a more aggressive, data-driven offensive. His "First Choice" strategy, unveiled in the second quarter of 2025, represents a multi-pillar approach designed to solidify the brand’s identity, leverage micro-targeted marketing, and recapture the "Unbridled Generosity" that defined the chain’s peak years.
The Evolution of a Turnaround: From North Star to First Choice
To understand Pace’s current trajectory, one must look at the groundwork laid during the tenure of G.J. Hart. Under the "North Star" initiative, Red Robin underwent a massive overhaul of its culinary and operational standards. This included replacing conveyor-belt ovens with flat-top grills to improve burger quality, upgrading 85 percent of menu ingredients, and shifting from frozen, pre-vetted chicken to hand-battered proteins prepared in-store. High-quality produce—such as vine-ripened tomatoes and premium pineapples—replaced lower-cost alternatives, and microwave-cooked bacon was phased out in favor of oven-roasted varieties.
When Pace assumed the CEO role, his primary concern was ensuring these gains were not lost in the pursuit of short-term cost-cutting. He introduced the concept of "holding serve," a philosophy centered on maintaining the elevated product standards while simultaneously finding new ways to drive guest frequency. Pace described his vision as a "yes and" model—continuing the quality improvements of the past while layering on sophisticated marketing and operational efficiencies. The goal was to shift the corporate culture from a defensive, turnaround-oriented mindset to a proactive, growth-oriented one.
Winning the Casual Dining Value Wars
Throughout the first half of 2025, Red Robin grappled with significant traffic challenges. By the end of the second quarter, the chain was reporting negative traffic comps in the range of 7 to 8 percent. While the brand had successfully improved its food quality, the associated price increases—implemented to combat inflation—had begun to alienate the core value-seeking consumer. Operators in the field reported a desperate need for a "hook" to drive mid-week and lunch traffic.
In July 2025, Red Robin responded with the launch of the "Big YUMMM" deal. Priced at $9.99, the offer included a Red’s Double Tavern Burger, a bottomless side, and a bottomless beverage. This move placed Red Robin in direct competition with heavyweights like Chili’s, which features its "3 For Me" platform starting at $10.99, and Applebee’s, which frequently utilizes "2 for $25" and $9.99 burger specials.
The response was immediate. By the fourth quarter of 2025, the Big YUMMM deal accounted for 10 percent of the dine-in mix. In January 2026, the brand expanded the platform into the "Big YUMMM Deals" menu, offering more than six options ranging from $9.99 to $16.99. This expansion included non-burger items such as Donatos pizza, hand-breaded chicken sandwiches, and Whiskey River barbecue wraps. This "barbell strategy" allowed guests to enter at a low price point while providing easy pathways to trade up to premium offerings, successfully boosting the average check while stabilizing traffic.
Precision Marketing and the Death of ‘Carpet Bombing’
One of the most significant shifts under Pace’s leadership has been the total reinvention of Red Robin’s marketing department. Pace characterized the industry’s historical approach as "carpet bombing"—broad, expensive campaigns that lacked precision. Under the "First Choice" marketing strategy implemented in Q3 2025, Red Robin transitioned to a "micro-targeted" model.
The company mapped every one of its restaurants across six to eight competitive categories and "clustered" stores based on local trade area dynamics. Rather than a universal national message, marketing spend was reallocated based on the specific needs of these clusters. For example, a restaurant in a high-competition suburban area might receive messaging focused on price-point value, while a location in a more affluent area might see ads highlighting premium ingredients and indulgent new products.
This data-centric approach extends to how the brand views its trade areas. Moving away from the traditional five-mile radius "bubble," Red Robin now uses advanced data to identify exactly where potential guests live, where they shop, and where they eat when they aren’t at Red Robin. This allows for highly personalized digital engagement, delivering the right message to the right guest at the moment of decision-making.
Financial Performance and Operational Metrics
The financial results of 2025 reflect a brand in the midst of a complex but promising transition. For the full year, same-store sales decreased slightly by 0.3 percent. This figure was comprised of a 3.8 percent drop in traffic and a 0.7 percent slide in menu mix, offset by a 4.2 percent benefit from net menu pricing. However, the momentum shifted in the latter half of the year. By December, increased marketing support and the Big YUMMM platform drove a traffic inflection that allowed Red Robin to outpace the Black Box casual-dining traffic index for the first time in over a year.
Profitability metrics showed even stronger improvement. The restaurant-level operating profit margin reached 12.7 percent, representing a 190-basis-point increase year-over-year. Adjusted EBITDA surged 53 percent to $69.7 million. These gains were largely driven by labor efficiency initiatives, which contributed 180 basis points to the margin in the fourth quarter alone.
Central to this operational success was the brand’s "Managing Partner" model. Following the lead of high-performers like Texas Roadhouse, Red Robin began rewarding store-level leaders for improvements in profitability. This ownership-driven culture has resulted in hourly turnover reaching its lowest levels since 2017, which Pace noted as a critical factor in maintaining consistent guest service.
Technological Integration and the Future of Service
Red Robin is also betting heavily on technology to streamline operations and enhance the guest experience. In the fourth quarter of 2025, the brand launched an enterprise version of ChatGPT for internal use. This platform helps managing partners optimize labor costs and cost of goods sold (COGS) by providing real-time data forecasting.
In 2026, the company plans to deploy $25 million to $35 million in capital expenditures. A significant portion of this is earmarked for technological hardware, including new server handheld devices and upgraded Ziosk tabletop units. These tools are designed to improve order accuracy and speed of service, effectively "returning the gift of time" to both guests and staff.
Furthermore, the brand is continuing its "fix restaurants" pillar with 20 light-touch refreshes completed in 2025 and more scheduled for 2026. These updates ensure that the physical environment of the restaurants matches the improved quality of the food and service.
Strategic Outlook and Industry Implications
As of the end of 2025, Red Robin’s footprint consisted of 475 locations—385 company-owned and 90 franchised. The reduction from 498 locations in the previous year is part of a "tactical refranchising" strategy. By selling certain company-owned units to franchisees and closing underperforming sites, Red Robin is working to strengthen its balance sheet and reduce debt. Pace indicated that franchisee confidence is high, with three current groups actively pursuing new unit development.
The broader implication of Red Robin’s "First Choice" plan is a case study in how a legacy brand can modernize without losing its soul. By balancing "Unbridled Generosity" with "Micro-Targeted Marketing," Red Robin is attempting to navigate a consumer environment defined by "uncertainty" and "pressure points."
Pace remains optimistic but urgent. "My style is to go fast," he stated, emphasizing that the turnaround is far from finished. The brand’s ability to sustain its December traffic momentum into 2026 will be the ultimate test of whether the "First Choice" strategy has truly corrected the course for this 57-year-old American classic. For now, the rallying cry within the system is clear: the team is engaged, the data is flowing, and Red Robin is learning how to win again in a hyper-competitive landscape.
