Red Robin to Close Up to 50 Locations in Restructuring Plan

Red Robin is executing a restructuring plan that could close up to 50 locations nationwide. The Cary, North Carolina restaurant is scheduled to close in the coming weeks after the chain agreed to sell the property for $3.3 million. The moves form part of the company's First Choice Plan, which seeks to reduce debt and shift more restaurants to franchise operators.

Red Robin initially warned that up to 70 restaurants could close, but improvements at about 20 struggling sites spared them from the list. CEO Dave Pace said during the fourth-quarter earnings call that the company had moved those 20 restaurants off the closure list. He added that the chain is hopeful they can return to performance levels matching the rest of the system.

Red Robin agreed to sell 86 company-owned restaurants to franchise operators Op Burgers and Kuber for a combined $72.5 million. It had previously sold another 30 locations to Evergreen Dining. The three agreements total roughly $96 million, which the company said will go toward paying down debt.

Pace stated that strengthening the financial foundation remains a key priority and that the partnerships introduce experienced operators into the Red Robin system. A company spokesperson said no confirmed number of closures exists yet because work on performance continues.

The chain no longer operates any locations inside New York City but maintains 14 sites on Long Island, in the Hudson Valley, and in upstate communities.