What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2022-03-10 compared with 2021-03-03 · 124 added, 145 removed, 228 unchanged (54% of the section changed)

24 unchanged sentences

2022 December 25, 2022 52

2023 December 31, 2023 53

Business Strategy

We entered 2020 with accelerating business momentum due to the implementation of our transformation strategy.

The strategy was developed based on comprehensive Guest-led studies that provided data driven and actionable information on how to align the Red Robin brand with our Guests.

Our Guests are every-day people seeking time with friends and family across a robust, diverse, and multi-generational demographic with a large majority falling into the Gen X, Millennial, and Centennial generations.

We believe our broad demographic appeal positions us well for future growth.

With the onset of the pandemic in early 2020, the Company entered an unprecedented time for our business and industry.

While the pandemic brought forth complex challenges, it also enabled us to intensely focus on improving our operating and financial model.

The material improvements made to our business enabled us to resume our transformation strategy in an even stronger position.

Our transformation strategy includes the following four fundamental elements:

• Recapture our Soul.

Our differentiated brand promise is to deliver memorable moments connecting family, friends, and fun.

We engage with our Guests by delivering burgers and other mainstream favorites in a casual, playful atmosphere.

We feature the highest quality burgers with a creative take on traditional, shareable foods like Donatos® pizza and wings, milkshakes, beer, and our signature all-you-can-eat Bottomless Steak Fries®.

A visit to our restaurant encourages Guests to determine the pace of their experience based on their occasion and connect with the people around the table, providing them "The Gift of Time".

Tabl e of Contents

• Deliver the Promise.

We are accountable for consistently delivering our brand promise to our Guests.

We accelerated the implementation of our new hospitality model, Total Guest Experience ("TGX"), during 2020 as dining rooms reopened.

TGX combines technology and improved service coverage to deliver an elevated and more attentive Guest experience.

TGX improved speed of service (including decreased ticket and window times), increased cleanliness scores, and contributed to highest ever product quality and overall Guest satisfaction scores.

TGX enables our servers to stay in their section the majority of the time to engage with Guests while server partners deliver food, beverages, refills, and clear dishes.

Restructuring our restaurant management labor model has also created greater flexibility during peak times.

Our restructured labor model benefits both our Guests and our Team Members, as it supports our hospitality model improvements while also creating a structured and clear career path for Team Members.

Both TGX and the new restaurant management labor model are contributing to our highest ever Guest satisfaction scores.

Pivoting to off-premise only at the onset of the pandemic required our Team Members to focus on improving the execution of our off-premise channel.

We leveraged technology and process enhancements to provide a seamless and frictionless off-premise experience to our Guests.

We also implemented a triple check accuracy program, ensuring every order goes through three checks before being handed to the Guest.

Our improvements resulted in approximately a 40% increase in order accuracy, and a 50% increase in overall off-premise Guest satisfaction scores, even as off-premise sales more than doubled compared to the prior year.

We believe these technological and operational improvements in conjunction with additional enhancements underway in 2021 will enable Red Robin to generate and maintain off-premise sales levels well above those generated prior to the pandemic.

We believe that delivering on our brand promise will drive growth in Guests visits and brand advocacy.

• Tell Our Story.

We launched our "All the Fulls" brand campaign in the third quarter of 2019.

The campaign emphasizes the emotional appeal of our brand promise of driving memorable moments of connection, connecting Guests where and how they consume media, and reinforcing key aspects of our brand, including our quality burgers and shareable mainstream favorites, in a family friendly atmosphere.

This has transformed the emphasis of our messaging from price to highlighting the value our brand provides.

Our core Guest is generally younger than that of the casual dining category and more active in the digital space, which has allowed us to further leverage digital marketing strategies that are more effective and cost efficient.

We also enhanced segmentation and targeting in our over nine million member Red Robin Royalty TM program, bringing loyalty engagement to best-ever levels.

Our marketing strategy has driven improved engagement with our Guests, and we expect it to continue to drive engagement with our brand in the future.

• Accelerate Profitable Growth

We seek to accelerate profitable sales growth through selective focus on fewer and more impactful initiatives that will drive significant top and bottom-line results.

During the pandemic, Red Robin permanently reduced costs with the expectation to deliver more than 100 basis points of permanent incremental enterprise-level margin improvement once we return to pre-COVID-19 sales volumes.

Additionally, we launched Red Robin last-mile delivery in 2020 which provides Guests the ability to utilize our unique loyalty program when ordering off-premise.

Further, in 2020, we announced our partnership with Donatos®, a high-quality pizza brand "nested" inside of Red Robin restaurants, that we expect to drive incremental top-line sales and gross margin and give Guests another reason to choose Red Robin.

At the end of 2020, we resumed the implementation of Donatos® bringing the total of number of Company-owned restaurants that offer it to 79.

In 2021, we plan to add Donatos® to approximately 120 Company-owned restaurants, bringing the total number of Company-owned restaurants that offer Donatos® to approximately 200 by the end of the year.

We believe Donatos® will generate annual Company pizza sales of more than $60 million and profitability of more than $25 million by 2023, when we expect to have completed our rollout to approximately 400 Company-owned restaurants.

As the Company emerges from the novel coronavirus ("COVID-19") pandemic, and we adapt to operating in a post-pandemic environment within the casual dining space, we are preparing our Team Members with a prescriptive "Ready-Set-Reopen" playbook, guiding best practices for operating our indoor dining rooms at 100% capacity.

We believe pent up demand, coupled with our record high Guest satisfaction scores, positions us well to welcome our Guests back to Red Robin with frequency.

Tabl e of Contents

Our long-term business strategy was developed using Guest and Team Member insights to align our efforts with our unique brand position in the industry.

Our Guests are every-day people seeking connection with friends and family across a diverse, and multi-generational demographic with a large majority falling into the Gen X, Millennial, and Centennial generations.

We believe our broad demographic appeal and distinct Red Robin brand equities position us well for future growth.

While the COVID-19 pandemic brought forth complex challenges, it also enabled us to intensely focus on improving our operating and financial model.

The material improvements made to our business will enable us to execute our business strategy in an even stronger position.

Our business strategy focuses on the following pillars;

Be the Employer of Choice in the Industry .

We champion a culture of diversity and inclusion where our people are developed, recognized and celebrated – and can always “come as they are.” We empower the people who make Red Robin possible and offer a compelling Team Member value proposition.

Deliver a Variety of Gourmet Burgers and Mainstream Favorites that Guests Love .

We offer a wide variety of gourmet burgers, with a creative take on traditional.

We understand our Guests’ preferences and provide high-quality burgers with sustainable alternatives, including the Impossible TM burger and our Veggie burger.

offer other mainstream favorites, like shareable pizza, wings, milkshakes, and beer.

We continue to focus on meaningful menu innovation that is compelling to Guests and easy for our Operations teams to execute.

• Guest Experience:

Create Relevant, Personalized and Memorable Guest Experiences .

We leverage our Total Guest Experience ("TGX") hospitality model to deliver fun and playful service that is tailored and customized to our Guests’ time and occasion, while delivering exceptional value through our commitment to bottomless steak fries ® and drinks.

We employ both off-premises and restaurant technology enhancements to present our Guest with a seamless and frictionless experience.

• Foundation:

Execute Profitable Growth Platforms .

Essential to our business model and related capital allocation, we have developed several platforms designed to drive consistent and profitable growth.

We are continuing to invest in these platforms that include our digital ecosystem and Donatos®, and support growing multiple channels of business including dine-in, off-premises and catering.

We are also in the early stages of reestablishing our new restaurant development program.

The Red Robin vision is to be the restaurant brand that our communities trust most…YUMMM®!

Restaurant Concept

4 unchanged sentences

We also offer burgers made with other proteins including chicken breasts (grilled or fried), turkey patties, as well as a proprietary vegetarian patty and the Impossible™ plant-based burger patty.

We offer a selection of buns, including gluten free, sesame, whole grain, and lettuce wraps, with a variety of toppings, including house-made sauces, crispy onion straws, sautéed mushrooms, several cheese choices, and a fried egg.

We offer a selection of buns, including gluten free, sesame, brioche, and lettuce wraps, with a variety of toppings, including house-made sauces, crispy onion straws, sautéed mushrooms, several cheese choices, and a fried egg.

All of our burgers are served with our all-you-can-eat Bottomless Steak Fries® or Guests may choose from other side options.

1 unchanged sentence

In addition to burgers, which accounted for 58% of food sales in 2021, Red Robin serves an array of other mainstream favorites that appeal to our Guests.

These items include a variety of shareable foods like Donatos® pizza and wings, salads, soups, seafood, and other entrees.

These items include a variety of shareable foods like Donatos® pizza, wings, salads, other entrees, and desserts.

We also offer a range of single-serve and shareable desserts as well as our milkshakes.

Our beverages include signature alcoholic and non-alcoholic specialty drinks, cocktails, wine, and a variety of national and craft beers.

We strive to give our Guests the choice of the pace of their experience based on their occasion, from accommodating time-pressured meals to offering a place to relax and connect with friends.

We strive to give our Guests the choice of the pace of their experience based on their occasion, from accommodating time-pressured meals to offering a place to relax and connect with family and friends.

Red Robin also has an extraordinary approach to Guest service, and we have cataloged thousands of stories of Red Robin Team Members who live our values.

3 unchanged sentences

In 2021, we had an average check per Guest of $14.46 including beverages.

Average Guest check decreased compared to 2019 due to the COVID-19 pandemic restricting indoor dining resulting in a higher off-premise sales mix.

We believe our price-to-value relationship, featuring our innovative array of quality burgers, differentiates us from our casual dining competitors and allows us to appeal to a broad base of middle income, multi-generational consumers.

Average Guest check increased compared to 2020 when the COVID-19 pandemic restricted indoor dining resulting in a higher off-premise sales mix.

We believe our price-to-value relationship, featuring our innovative array of quality burgers, served with bottomless fries, differentiates us from our casual dining competitors and allows us to appeal to a broad base of middle income, multi-generational consumers.

Ongoing Commitment to Sustainability

Red Robin's Better for Being Here mentality represents our commitment as the Company matures its approach to sustainability.

Red Robin is a company that cares;

we have always strived to make the world a better place for our Team Members, our community, and our planet.

We are beginning to undertake a more formal and robust sustainability journey with meaningful goals and a commitment to align with the industry, and are informed by experts including the Sustainability Accounting Standards Board (the "SASB").

Human Capital Management

1 unchanged sentence

Bottomless Fun, Unwavering Integrity, Relentless Focus on Improvement, Genuine Spirit of Service, Extraordinary People, and Recognized Burger Authority.

Each of these values work to empower and develop our Team Members and has created a Company culture that we collectively take pride in every day.

Each of these values work to empower and develop our Team

Members and has created a Company culture that we collectively take pride in every day.

We reward and incentivize our Team Members with competitive pay, recognition and rewards, and benefit programs.

3 unchanged sentences

As of December 26, 2021, we had 22,483 Team Members consisting of 22,045 Team Members at Company-owned restaurants and 438 restaurant support center and field-based Team Members.

We are currently 99% staffed at the restaurant manager level, and our restaurant Team Member turnover rate is approaching industry best-in-class targets.

We focus on General Manager tenure in restaurants and its positive link to Guest traffic, overall Guest satisfaction, and Team Member turnover trends.

Our General Manager turnover during 2021 was 27.6%, and 67.2% of General Managers have been managing their current restaurant for a year or more.

None of our Team Members is covered by a collective bargaining agreement.

We consider our Team Member relations to be good, and we have not experienced any significant work stoppages during 2020.

Tabl e of Contents

None of our Team Members are covered by a collective bargaining agreement.

Competitive Compensation and Benefits

2 unchanged sentences

All other positions are paid at or above minimum wage, and we ensure tipped positions make more than minimum wage when including tips.

Our benefits programs include medical and other insurance, employee assistance programs, shift meals, Red Robin meal discounts, paid time off, 401(k) with employer match, tuition reimbursement, an employee stock purchase plan, and equity-based awards for eligible restaurant support center and operations Team Members, generally, at the director level and above.

The Red Robin Perks program also provides discounts on a wide range of products and services, including cell phone bills, technology purchases, movie tickets, gym memberships, and vacation packages.

Additionally, we motivate and support healthy work/life balance and flexible working arrangements for restaurant support center Team Members.

During the COVID-19 pandemic, we implemented an emergency sick pay policy for Team Members in all states.

While our restaurants were closed or on reduced capacity, we provided assistance to Team Members looking for additional hours.

We partnered with grocery stores, an online retailer, restaurant delivery drivers, and a technology partner in order to provide early visibility to available jobs, streamlined applications, and interviews.

Our benefits programs include medical and other insurance, employee assistance programs, shift meals, Red Robin meal discounts, paid time off, 401(k) with employer match, an employee stock purchase plan, and equity-based awards for eligible restaurant support center and operations Team Members, generally, at the director level and above.

Our compensation and performance evaluation systems are carefully designed to maintain pay equity by focusing pay decisions on experience and performance to ensure the Company retains a highly productive workforce to operate our business while providing a high level of service to our Guests.

Health and Safety

We operate with the health, safety, and well-being of Red Robin's Team Members, Guests, and communities in mind, as well as federal, state and local regulatory requirements.

We have traditionally been a leader in health and safety and have implemented new practices during the COVID-19 pandemic consistent with that leadership position.

Due to the COVID-19 pandemic, we continue to navigate an unprecedented time for our business and industry.

We operate with the health, safety, and well-being of Red Robin's Team Members, Guests, and communities in mind with strict adherence to US Centers for Disease Control and Prevention, state, and local guidelines as our top priority.

In response to the COVID-19 pandemic, we require that Team Members take temperature checks prior to entering the restaurant and wear a face mask at all times while in the restaurant except when eating, and we provide personal protective equipment for our restaurant Team Members.

We also have implemented a six-foot distancing playbook that allows managers to maintain a six-foot distance from others while performing their daily tasks, one-on-one meetings, Team Member interactions, orientations, and interviews.

We provided COVID-19 testing coverage for our restaurant Team Members through our benefit plans before it was required, and we plan to continue offering testing.

During the COVID-19 pandemic, we immediately instituted telecommuting policies at the restaurant support center to support working from home and will not bring Team Members back to the office before it is deemed safe by public health officials.

Through the Leading from a Distance workshop, we taught skills to restaurant support center and restaurant Team Members in supervisor positions that helped to continue to drive performance during a time where face-to-face interaction was limited.

These workshops focused on creating engagement, communication, and accountability.

We began offering these workshops before the COVID-19 pandemic, so our Team Members in supervisor positions were able to use these skills to aid in a smooth transition into the COVID-19 operating environment.

We are assessing opportunities for a more permanent remote work force at the restaurant support center.

In response to the COVID-19 pandemic, we have provided personal protective equipment for our restaurant Team Members.

We also provided COVID-19 testing coverage for our restaurant Team Members through our benefit plans before it was required.

During the COVID-19 pandemic, we immediately instituted telecommuting policies at the restaurant support center to support working from home.

As a result of the success of that approach, we have implemented a dispersed workforce policy that permits many of our Restaurant Support Center Team Members to continue working remotely and we expect that to continue on a go-forward basis.

For on-site critical, Company leadership, and those who desire to work in a shared location, we have optimized our office footprint to meet the needs of that population.

Diversity, Equity, and Inclusion

1 unchanged sentence

We have a successful Women's Excellence program, a Company-wide resource group to support and inspire Team Members through development, networking, leadership, and other resources while fueling a culture of opportunity and diversity, and we continue to partner with the Women's Foodservice Forum, which has been instrumental in providing valuable resources and insights to help the advancement of our female leaders.

During 2020, we also began holding focus groups on the topics of social and economic inequality.

These informal focus groups include Team Members from all levels of the Company led by a key leader trained as a moderator to facilitate a discussion about social and economic inequality and how we as a Company can work together towards building a more equitable and just society.

We recently launched an initiative with the assistance of a diversity consultant to identify areas of opportunity for expanded diversity and inclusion practices in our Company and to support the development and execution of a comprehensive long-term diversity, equity, and inclusion strategy for Red Robin.

Tabl e of Contents

We are progressing with an initiative with the assistance of a diversity consultant to identify areas of opportunity for expanded diversity and inclusion practices in our Company and to support the development and execution of a comprehensive long-term diversity, equity, and inclusion strategy for Red Robin.

In late 2021, Directors and above in Operations and Restaurant Support Center leadership positions completed unconscious bias training.

We intend to provide similar training to our restaurant General Managers in 2022.

Restaurant Management

Our typical restaurant management team consists of a general manager, an assistant general manager, one to two associate managers, and additional shift supervisors depending on restaurant sales volumes.

With our restaurant management restructuring completed in 2020, we will be able to fluctuate supervision needs more easily to better adjust to sales volumes in our restaurants.

With our restaurant management restructuring completed in 2020, we have been able to fluctuate supervision needs more easily to better adjust to sales volumes in our restaurants.

This improves our ability to manage effectively by placing more management and supervision in the restaurants during peak times.

It also expanded our talent pipeline with additional capacity for entry-level restaurant managers.

In 2021, we accelerated hiring of associate managers to reflect improving sales volumes, and to support operationally challenged restaurants.

Our restaurant management restructuring also expanded our talent pipeline with additional capacity for entry-level restaurant managers.

This provides a structured and clear career path for our Team Members and allows us to broaden our external candidate pool beyond individuals with full service dining experience.

6 unchanged sentences

We continue to focus on hiring, training, and retaining our Team Members as we believe this is key to maintaining quality and consistency in each of our restaurants.

Shift Supervisors complete an in-depth training curriculum that develops their ability to supervise all aspects of shift execution, including, but not limited to, food safety, food production, Team Member coaching, creating memorable moments of connection with our Guests, ensuring Guest satisfaction, and financial aspects of the business.

The Shift Supervisor program is an important steppingstone for hourly Team Members who desire a career in restaurant management.

New restaurant managers participate in our eight-week Management Foundations training program.

1 unchanged sentence

flawless shift execution and effective coaching of Team Members.

Through these learning and development practices at the restaurants, the majority of current restaurant management Team Members have been promoted from within.

Providing our restaurant teams the support and resources they need to be successful requires dedication, an of-service attitude, and the utmost professionalism on the part of our restaurant support center team.

We ensure the restaurant support center Team Members have what they need to meet these demands by offering several avenues to enhance their professional development, including but not limited to, an in-house leadership library of over 400 titles, more than 40 remote learning development opportunities, one-on-one career coaching, and the opportunity to attend conferences in their field.

These learning and development practices at the restaurants support our talent pipeline to develop and promote our restaurant management Team Members from within.

Team Member Engagement

1 unchanged sentence

We welcome open, candid feedback to ensure Team Members feel heard and engaged and to better support the values important to each of our Team Members.

We accomplish this through a variety of programs and forums, including town halls, virtual open forums, Heart Checks, one-on-one coaching meetings, Discovery cards, Quality Circles, and Team Member Voice.

Heart Checks are performed at the beginning of restaurant team monthly performance meetings and allow for restaurant Team Members to candidly share their thoughts and feelings about Red Robin with members of the restaurant's leadership team.

During Discovery card sessions, a Team Member reviews a set of theme cards with statements such as, "I feel valued at my company and my opinions matter".

The Team Member then interprets each card and places the cards in one of three columns, strengths, opportunities, and neutral, based on their opinion of each Discovery card statement.

The session leader then asks the Team Member in a one-on-one setting to elaborate on why they placed each card in the respective columns.

Quality Circles are informal meetings including Team Members from all levels of the Company led by a key leader who facilitates a discussion about current events and issues affecting the Company and our Team Members.

Team Member Voice is an annual anonymous survey taken by every Team Member in the Company where they can respond to statements on a scale from strongly agree to strongly disagree.

The statements included on the survey cover topics such as satisfaction with their supervisor, direction of the Company, intention to remain at Red Robin, and receiving the tools necessary to succeed in their position.

Results are separated between restaurant support center Team Members and restaurant Team Members, and then results are shared with Team Members in a supervisor position.

We accomplish this through a variety of programs and forums, including town halls, virtual open forums, and one-on-one coaching, wellness and engagement meetings, and Team Member Voice surveys.

In addition to these structured programs and forums, we maintain an open-door policy at all levels of the Company.

Our Company remains committed to offering Team Members numerous opportunities to have their voices heard because we believe our Team Members are our most valuable resource.

Tabl e of Contents

In late 2021, we began exploring the need to update and enhance our Team Member value proposition.

This includes a multi-channel discovery process where we have sought feedback from prior Team Members as well as current Team Members in our restaurants and the Restaurant Support Center.

Conducted through a variety of survey and interview techniques, we have developed a growing body of data to inform the evolution of our Team Member value proposition.

Food Safety and Purchasing

12 unchanged sentences

We monitor the market for the primary commodities we purchase and extend contract positions when applicable in order to minimize the impact of fluctuations in price and availability.

However, certain commodities, primarily cheese and ground beef, have historically been subject to market price fluctuations.

We continue to identify competitively priced, high quality alternative manufacturers, suppliers, growers, and distributors that are available should the need arise;

however, to date we have not experienced significant disruptions in our supply chain.

However, certain commodities, primarily cheese, bacon and ground beef, have historically been subject to market price fluctuations.

As a result of the COVID-19 pandemic, we have experienced and expect to continue to experience distribution disruptions, commodity cost inflation, and certain food and supply shortages.

To manage this risk in part, we enter into fixed-price purchase commitments for certain commodities;

however, it may not be possible for us to enter into fixed-price purchase commitments for certain commodities, or we may choose not to enter into fixed-price contracts for certain commodities.

We believe that substantially all of our food and supplies meeting our specifications are available from alternate sources, which we have identified to diversify our supply chain.

As of December 26, 2021, approximately 65% of our estimated annual food and beverage purchases were covered by fixed price contracts, most of which are scheduled to expire at various times through the end of 2022.

Restaurant Development

Red Robin has grown its restaurant base prudently, considering a number of factors, including general economic conditions, expected financial performance, availability of appropriate locations, competition in local markets, and the availability of teams to manage new locations.

Our site selection criteria focuses on identifying markets, trade areas, and specific sites that are likely to yield the greatest density of desirable demographic characteristics, retail traffic, and visibility.

Based on these factors and the effects of COVID-19 on our business, we did not have new corporate unit growth in 2020.

Restaurant Development, Remodels, and Donatos®

In 2020, Red Robin reestablished a new restaurant development program as part of its long-term growth strategy which includes opportunities to execute sustainable growth initiatives that deliver value to our stockholders.

We have made considerable progress establishing the foundation of our program during the pandemic, including refining our new restaurant prototype design, identifying target markets to prudently add new restaurants and reengaging our broker network to assist in identifying new restaurant sites.

Target markets were selected based on brand affinity, operational and financial performance, marketing efficiency, availability of incremental sites, and expected financial returns.

Specific site selection criteria is focused on identifying markets, trade areas, and specific sites that are likely to yield the greatest density of desirable demographic characteristics, retail traffic, and visibility.

In the fourth quarter of 2021, we opened one corporate restaurant in a high volume market.

This restaurant utilizes our new prototype configuration with design enhancements to improve dine in, off-premises, and curbside execution, and an optimized kitchen layout that enhances efficiency.

The Company is expecting to pursue modest new restaurant growth based on an ongoing track record of successful restaurant openings that meet our financial criteria, beginning in 2023.

During the pandemic, we suspended restaurant refreshes and remodels at our existing locations.

Starting in 2022, we are resuming this program to keep our restaurants relevant and well-maintained.

In 2020, we announced our partnership with Donatos®, a high-quality pizza brand "nested" inside of Red Robin restaurants.

Through this partnership, our restaurants will prepare and serve Donatos® branded pizzas to our dine in and off-premise Guests.

Through this partnership, our restaurants will prepare and serve Donatos® branded pizzas to our dine in and off-premises Guests.

Pursuant to a licensing arrangement, we will pay royalties on sales of Donatos® pizza products to Donatos®.

As of December 26, 2021, we have introduced Donatos® pizzas to 198 restaurants.

We plan to introduce Donatos® to approximately 120 restaurants in 2021 and expect to complete our rollout to approximately 400 Company-owned restaurants by 2023.

During 2021, we will continue to execute our long-term growth strategy which includes opportunities to broaden our reach and execute sustainable growth initiatives that deliver value to our stockholders.

The Company is expecting to open one new restaurant during 2021 .

Beyond 2021, we plan to resume investing in restaurant refreshes and remodels that we suspended in 2020 due to the COVID-19 pandemic.

We plan to introduce Donatos® to approximately 50 restaurants in 2022 and expect to complete our rollout to approximately 400 Company-owned restaurants during 2023.

Restaurant Franchise and Licensing Arrangements

As of December 26, 2021, our franchisees operated 101 restaurants in 16 states and British Columbia, Canada.

Our two largest franchisees own 43 restaurants located in Michigan, Ohio, and Eastern and Central Pennsylvania.

In 2020, we opened one new franchise restaurant.

We do not expect our franchisees to open any new restaurants in 2021.

Our two largest franchisees own 43 restaurants located in Eastern and Central Pennsylvania, Michigan and Ohio.

We anticipate that our franchisees will open one new restaurant in 2022.

Franchise Compliance Assurance

4 unchanged sentences

We also exchange best operating practices with our franchisees as we strive to improve our operating systems while attaining a high level of franchisee participation.

Tabl e of Contents

In response to COVID-19's effect on our franchise operations, we temporarily abated franchise royalty payments and advertising contributions during 2020.

During periods of abated payments, franchise revenue was not recognized or collected from our franchisees.

Abated royalty payments and advertising contributions will not be collected by the Company.

Additionally, we provided assistance to our franchisees to onboard their restaurants onto our online ordering platforms, enabling them to more effectively capture off-premise sales during the pandemic.

Digital Ecosystem

During 2021, the Company has significantly advanced its digital strategy by completing a number of enhancements which together create an integrated and seamless digital ecosystem for our Guests.

In the fourth quarter of 2021, we launched mobile applications on both iOS and Android platforms.

These applications are designed to generate higher order conversion compared to the legacy online experience, and offer superior suggested upsell capabilities on top of a more convenient user experience.

During the fourth quarter of 2021, we also introduced improved and more relevant digital experiences to drive incremental frequency from existing Guests, new Guest traffic and Guest checks.

These improvements include the launch of a new and improved website, and the integration of a new loyalty platform, giving us new segmentation capabilities to connect with our Guests more meaningfully, through personalized messaging based on their purchase history.

This has allowed us to maintain high levels of engagement with the over 10 million members of our Red Robin Royalty program.

These enhancements of our digital Guest experiences were "soft-launched" in the fourth quarter of 2021, and will receive marketing support in early 2022 to drive awareness and trials of the new applications and website ordering experience.

These enhancements are iterative, and we expect to continue making ongoing innovations and improvements to Red Robin's digital ecosystem following the initial launch for years to come.

Information Technology

We rely on information systems in all aspects of our operations, including, but not limited to, point-of-sale transaction processing in our restaurants, operation of our restaurants, management of our inventories, collection of cash, payment of payroll and other obligations, and various other processes and procedures.

We rely on information systems in all aspects of our operations, including, but not limited to, point-of-sale transaction processing in our restaurants, digital experiences, operation of our restaurants, labor management, management of our inventories, collection of cash, payment of payroll and other obligations, and various other processes and procedures.

Our restaurant support center and Company-owned restaurants are enabled with information technology and decision support systems.

1 unchanged sentence

This technology includes industry-specific, off-the-shelf systems such as tools designed to optimize food, beverage, and labor costs.

These systems are integrated with our point-of-sale systems to provide daily, weekly, and period-to-date information that is important for managers to run an efficient and effective restaurant.

We also use technology to interact with our Guests.

This includes our website, loyalty platform, online ordering tools, and Guest feedback systems, which provide actionable insights on Guest service, food quality, and atmosphere to each of our restaurants.

These systems are integrated with our point-of-sale systems to provide daily, weekly, and period-to-date reporting that is important for Managers to run an efficient and high-performing restaurant.

We also use technology to interact with our Guests via our digital ecosystem, inclusive of our website, mobile Apps, loyalty platform, online ordering site, and Guest feedback systems, which provide actionable insights on Guest service, food quality, and atmosphere of each restaurant.

We utilize centralized financial, accounting, and human resource management systems to support our restaurant support center and Company-owned restaurants.

2 unchanged sentences

In 2020, we invested in infrastructure that modernized and upgraded the capacity of our restaurant systems, stabilized the hand-held point-of-sale devices system wide to prepare for the launch of our new Total Guest Experience service model, and continued work on new, Guest facing digital experiences that support in-restaurant and off-premise dining.

In 2021, we plan to continue our investments in building innovative digital experiences for our Guests and to improve our ability to manage our technology infrastructure through investments in infrastructure, automation, and advanced monitoring.

In 2021, we implemented the first phase of our digital transformation which included a new and improved ordering site, custom mobile Apps (iOS and Android), and a new integrated Loyalty Platform.

We plan to continue our investments in building innovative digital experiences for our Guests and to improve our ability to manage our technology infrastructure through investments in infrastructure, automation, and advanced monitoring through a Cloud first approach.

We accept electronic payment cards from our Guests for payment in our restaurants.

9 unchanged sentences

We build brand equity and awareness through a media strategy with tailored content by channel and target.

We leverage digital media (including search, website, paid digital, over-the-top, online video, and social media), email, SMS, and public relations initiatives.

We leverage digital media (including search, website, digital display, over-the-top, online video, and social media), email, SMS, and public relations initiatives.

These programs are funded primarily through cooperative creative development and national media advertising funds.

5 unchanged sentences

We also continually monitor our performance relative to peers and test potential business drivers among both current and potential Guests.

We leverage our over nine million member Red Robin Royalty TM database to gain insights and track the frequency and purchase behavior of our Guests.

Tabl e of Contents

Our "All the Fulls" brand campaign, which highlights our distinctive positioning and emotional connection with Guests, will feature new creative content in 2021.

We leverage our over ten million member Red Robin Royalty TM database to gain insights and track the frequency and purchase behavior of our Guests.

Our "All the Fulls" brand campaign, highlights our craveable food, distinctive positioning and emotional connection with Guests.

We will also continue marketing support for our growing off-premise business which includes carryout, catering, and delivery.

In 2020, we began increasing our focus on digital marketing, which has proven effective in reaching our core Guests where and how they consume media, and more cost effectively.

In 2021, we have maintained our focus on digital marketing, which has proven effective in reaching our core Guests where and how they consume media, in the most cost effective way.

This digital marketing strategy has led to increased Guest engagement with our brand.

4 unchanged sentences

Jonathan Muhtar 50 Executive Vice President and Chief Concept Officer

Schweinfurth 53 Executive Vice President, Chief Financial Officer, and Interim Chief Information Officer

Michael Buchmeier 57 Senior Vice President, Chief People Officer, and Interim Chief Operating Officer

Schweinfurth 54 Executive Vice President, Chief Financial Officer, and Interim Chief Accounting Officer

Michael Buchmeier 58 Senior Vice President and Chief Operating Officer

Kaplan 53 Executive Vice President and Chief Legal Officer

Darla Morse 59 Executive Vice President and Chief Information Officer

Wayne Davis 59 Senior Vice President and Chief People Officer

Murphy joined Red Robin as President and Chief Executive Officer in October 2019.

17 unchanged sentences

Schweinfurth joined Red Robin as Executive Vice President and Chief Financial Officer in January 2019.

She is also currently serving as our interim Chief Information Officer beginning in August 2020.

She is also currently serving as our interim Chief Accounting Officer beginning in February 2022.

Schweinfurth previously served as Vice President, Chief Financial Officer and Treasurer of Fiesta Restaurant Group since 2012 and was appointed Senior Vice President of Fiesta Restaurant Group in February 2015.

7 unchanged sentences

Michael Buchmeier .

Buchmeier has served as our Senior Vice President and Chief People Officer since August 2019.

He is also currently serving as our interim Chief Operating Officer, beginning January 2020.

Buchmeier serves as Red Robin's Senior Vice President and Chief Operating Officer since November 2021, and previously served as our Senior Vice President and Chief People Officer since August 2019, and as the Company's interim Chief Operating Officer, beginning January 2020.

Prior to his appointment to the Senior Vice President and Chief People Officer position, Mr.

4 unchanged sentences

(d/b/a Standard Aero), a privately held global aviation maintenance company, from January 2010 to September 2013, and as a Shareholder at Greenberg Traurig, LLP, an international law firm, from January 2002 to January 2010.

Tabl e of Contents

Morse joined Red Robin as Executive Vice President and Chief Information Officer in March 2021.

Prior to joining the Company, she served as Chief Information Officer at CKE Restaurants Holdings from April 2019 to April 2021, Chief Information Officer at Inspire Brands from April 2016 to April 2019, and Chief Information Officer at Seaworld from April 2010 to April 2016.

Davis joined Red Robin as Senior Vice President and Chief People Officer in November 2021.

Prior to joining the Company he served as Senior Vice President of International Human Resources at Comcast from June 2009 to January 2021, and Vice President of Human Resources at YRC Worldwide from June 2005 to June 2009.

The restaurant industry is highly competitive, and our Guests may choose to purchase food at supermarkets or other food retailers.

10 unchanged sentences

As a result, our quarterly operating results and comparable restaurant sales may fluctuate significantly as a result of seasonality.

Accordingly, results for any one quarter or year are not necessarily indicative of results to be expected for any other quarter or for any year, and comparable restaurant sales for any particular future period may decrease.

We have a number of registered trademarks and service marks, including the Red Robin®, Red Robin Gourmet Burgers®, Red Robin America's Gourmet Burgers & Spirits®, Red Robin Burger Works®, "YUMMM®", Red Robin Gourmet Burgers and Brews TM, and Red Robin Royalty TM names and logos.

We have registered or filed applications for trademarks for these marks, among others, with the United States Patent and Trademark Office, and we have applied to register various trademarks in certain other international jurisdictions.

We have a number of registered trademarks and service marks, including the Red Robin®, Red Robin Gourmet Burgers®, "YUMMM®", Red Robin Gourmet Burgers and Brews®, and Red Robin Royalty® and logos.

We have registered for these marks, among others, with the United States Patent and Trademark Office, and we have applied to register various trademarks in certain other international jurisdictions.

Pursuant to our licensing arrangement with Donatos®, we license the right to use the Donatos® trademark.

2 unchanged sentences

Government Regulation

Our restaurants are subject to licensing and regulation by state, province, and local health, safety, fire, and other authorities, including licensing requirements, regulations for the sale of alcoholic beverages and food, and public health related indoor capacity restrictions.

In response to the COVID-19 pandemic, federal, state, and local governments have issued and revised a significant amount of regulations affecting our business, with requirements often changing without much advance notice.

Regulations relating to the vaccination and COVID-19 testing of Guests and Team Members, Guest spacing within dining rooms and other social distancing practices, sanitation practices, isolation and quarantine periods for Team Members, paid sick leave, and mask mandates for Guests and Team Members have materially affected the way we operate our business and serve our Guests.

We are also subject to laws and regulations relating to the preparation and sale of food, including regulations regarding product safety, nutritional content, and menu labeling.

Our collection or use of personal information about Guests or our Team Members is regulated at the federal and state levels, including the California Consumer Privacy Act.

Our restaurants are subject to various licensing requirements and other regulations by state, and local health, safety, fire, and other authorities, including licensing requirements, regulations for the sale of alcoholic beverages and food, and public health related indoor capacity restrictions.

To date, we have been able to obtain and maintain all necessary licenses, permits, and approvals.

The development and construction of new restaurants is also subject to compliance with applicable zoning, land use, and environmental regulations.

We are also subject to certain guidelines under the Americans with Disabilities Act of 1990 and various state codes and regulations, which require restaurants and our brand to provide full and equal access to persons with physical disabilities.

We are also subject to federal regulation and state laws that regulate the offer and sale of franchises and substantive aspects of the franchisor-franchisee relationship.

Various federal and state labor laws govern our relationship with our Team Members and affect operating costs.

These laws govern minimum wage requirements, overtime pay, meal and rest breaks, unemployment tax rates, health care and benefits, workers' compensation rates, citizenship or residency requirements, child labor regulations, and discriminatory conduct.

Federal, state, and local government agencies have established or are in the process of establishing regulations requiring that we disclose to our Guests nutritional information regarding the items we serve.

Various federal and state labor laws govern our relationship with our Team Members and can significantly impact our operating costs.

These laws govern minimum wage requirements, overtime pay, tip credits, paid leave, meal and rest breaks, unemployment tax rates, health care and other benefits, workers' compensation rates, citizenship or residency requirements, child labor regulations, and discriminatory conduct.

Available Information

We maintain a link to investor relations information on our website, www.redrobin.com , where we make available, free of charge, our Securities and Exchange Commission ("SEC") filings, including our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and all amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC.

We maintain a link to investor relations information on our website, ir.redrobin.com , where we make available, free of charge, our Securities and Exchange Commission ("SEC") filings, including our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and all amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC.

All SEC filings are also available at the SEC's website at www.sec.gov.

Our website and the information contained on or connected to our website are not incorporated by reference herein, and our web address is included as an inactive textual reference only.

Tabl e of Contents

Forward-Looking Statements

3 unchanged sentences

Forward-looking statements may relate to, among other things:

(i) our business objectives and strategic plans, including projected growth in Guest traffic and revenue, planned improvements in operational efficiencies, gross margins, and expense management and enhancements to our restaurant environments and Guest engagement;

(i) our business objectives and strategic plans, including projected or anticipated growth, including in Guest traffic and revenue, planned improvements in operational efficiencies, gross margins, and expense management and enhancements to our restaurant environments and Guest engagement, including the anticipated impacts of innovations, improvements and enhanced marketing support for certain aspects of our business;

(ii) our expectations about pricing strategy and average check size;

(iii) our ability to hire, train, and retain Team Members;

(iv) investments in information technology systems and anticipated related benefits;

(iii) our expectations of the competitiveness of the labor market and our ability to hire, train, and retain Team Members;

(iv) anticipated capital investments including in our digital ecosystem, information technology systems, our restaurant development program, and the anticipated related benefits;

(v) our expectations about restaurant operating costs, including commodity and food prices and labor and energy costs;

(vi) anticipated legislation and other regulation of our business;

(vii) recent initiatives such as changes to our service model and our partnership with Donato's®;

(viii) our expectations about future cash flows, liquidity, future capital expenditures and other capital deployment opportunities, and taxes;

(vii) anticipated continued investments in our partnership with Donatos®;

(viii) our expectations about anticipated uses of, and risks associated with future cash flows, liquidity, future capital expenditures and other capital deployment opportunities, and taxes;

(ix) our expectations regarding competition;

and (x) our expectations regarding demand and business recovery, consumer preferences, and consumer discretionary spending;

(xi) our expectations regarding the implementation and anticipated benefits of our diversity and inclusion initiatives;

(xii) anticipated impacts of COVID-19, measures we have and may continue to take in response to the COVID-19 pandemic including remote working arrangements, and any pandemic mitigation measures imposed by governments;

(xiii) the seasonality of our business;

(xiv) our expectations and other statements regarding interest rates, commodity prices and the other risks discussed under Risk Factors below.

Although we believe the expectations reflected in our forward-looking statements are based on reasonable assumptions, such expectations may prove to be materially incorrect due to known and unknown risks and uncertainties.

14 unchanged sentences

• the impact of federal, state, and local regulation of the Company's business;

• the impact of federal, state, and local COVID-19 regulation or requirements, including capacity restrictions;

• changes in federal, state, or local laws and regulations affecting the operation of our restaurants, including minimum wages, consumer health and safety, health insurance coverage, nutritional disclosures, and employment eligibility-related documentation requirements;

3 unchanged sentences

Except as required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances.

Tabl e of Contents

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business