Part 6/9:
Despite a prosperous run, Red Robin faced numerous challenges. A catastrophic 2005 incident involving ousted CEO Michael Snyder, whose fraudulent practices led to shareholder lawsuits, marked the beginning of the chain’s troubles. The restaurant's reputation continued to take hits, including a significant payout for a class-action lawsuit in 2015 regarding tipping practices for servers.
Further, an attempt to reduce labor costs by eliminating busers in 2018 backfired. Instead of saving money, customer service suffered, leading to declining satisfaction and repeat business. In addition, misleading marketing campaigns and the rise of competitors also impacted Red Robin's bottom line, with many patrons opting for newer and healthier dining choices.