Red Robin Gourmet Burgers, Inc. (RRGB) has tapped into both the fast casual restaurant trend that is sweeping consumers across the nation while also tapping into the quick-service restaurant consumer base with its lower-priced Tavern platform, says Will Slabaugh, Research Analyst at Stephens Inc.
“Red Robin is a standout in that $12 to $15 check average range, which we view as the core causal diners. They have what I consider to be a top-tier management team — has done a great job of promoting the increasingly important everyday value piece of the menu. They are also giving their customer a reason to trade up whenever they want to,” Slabaugh said.
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Slabaugh says the Tavern platform of burgers for $6.99 taps into QSR as well, giving Red Robin customers the chance to move up or down the value chain without changing locations.
“Essentially, as a Red Robin customer, if I want to go out and eat a burger for $6.99, I know I can do that every single day. So they have also probably done the best job among their peers of engaging and communicating with customers to drive involvement in their loyalty program and menu initiatives through digital social media. It continues to be a great success story, whereas for most of the industry, loyalty and digital and social media really hasn’t been a big of a factor,” Slabaugh said.
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