Red Robin Sells 86 Locations to Franchisees in Major Deal

Red Robin Strikes Two Major Refranchising Deals Worth $72.5 Million

Red Robin Gourmet Burgers has announced the sale of 86 company-owned restaurant units to two experienced multi-unit operators in separate refranchising agreements totalling $72.5 million. The deals, which remain subject to customary due diligence and closing conditions, will see Op Burgers and Kuber take ownership of locations across ten states while continuing to operate them under the Red Robin brand. The transactions represent a significant acceleration of the casual dining chain's refranchising strategy and mark one of the more consequential financial moves the company has made in recent memory as it works to strengthen its balance sheet and reduce outstanding debt.

Op Burgers Takes On 69 Units Across Eight States

The larger of the two agreements sees Op Burgers, LLC acquire 69 Red Robin units spread across Kentucky, Indiana, Maryland, Ohio, North Carolina, Pennsylvania, South Carolina, and Virginia for $62.5 million. The transaction covers a geographically diverse collection of markets in the Midwest and Mid-Atlantic regions, placing a substantial portion of Red Robin's company-owned estate into the hands of an operator with a proven track record in multi-unit restaurant management. Op Burgers expressed genuine enthusiasm for the partnership, noting its longstanding admiration for Red Robin's commitment to quality food and service and its intention to work closely with existing team members to strengthen each location's position within its local community.

Kuber Acquires 17 Pacific Northwest Locations for $10 Million

The second agreement brings Kuber Oregon, LLC and Kuber Washington, LLC into the Red Robin system as franchisees, acquiring 17 units located in Oregon and Washington for $10 million. The Pacific Northwest has historically been a meaningful market for Red Robin, which was itself founded in the region, making Kuber's entry a culturally fitting one. The new franchisee framed its motivation in values-driven terms, pointing to Red Robin's community-centred approach as a key attraction. "Sharing meals is the best way to bring people together," Kuber said in a statement. "We have always admired Red Robin's commitment to fostering the community spirit at each of its restaurants."

A Third Deal Brings the Combined Refranchising Total to Nearly $96 Million

The two newly announced transactions do not stand alone. They follow the May 28 announcement of a separate refranchising agreement covering 30 locations sold to Evergreen Dining, LLC. Taken together, the three transactions represent a combined value of approximately $96 million- a substantial sum that gives Red Robin meaningful financial firepower to address its debt obligations and fund the refinancing priorities outlined in its strategic roadmap, known as the First Choice Plan. The speed with which the company has executed across three separate franchise deals in quick succession signals both the urgency of its financial objectives and the appetite among experienced operators to invest in the Red Robin system.

Proceeds Will Go Toward Debt Reduction and Refinancing Priorities

Red Robin has been explicit about how it intends to deploy the proceeds from these transactions. The company plans to use the net funds to pay down outstanding debt and advance the refinancing objectives at the core of its First Choice Plan- the strategic framework guiding the brand's recovery and reinvestment efforts. CEO Dave Pace described the deals as "a major step forward" in strengthening the company's financial foundation, while also highlighting the broader operational benefits of bringing experienced franchise operators into the system. The combination of debt reduction and new franchisee investment is designed to create the financial flexibility the brand needs to accelerate improvements system-wide rather than simply manage existing obligations.

Red Robin's CEO on What These Partnerships Mean for the Brand's Future

Pace was direct in articulating the strategic significance of the moment. "These new partnerships with Op Burgers, Kuber, and Evergreen Dining will provide Red Robin with the financial flexibility needed to reduce debt, support our refinancing objectives and accelerate investment system-wide," he said. "I look forward to what we will accomplish together for the benefit of our guests, team members and investors." Both incoming franchisees bring demonstrated capabilities in delivering strong guest experiences and scaling restaurant operations- qualities that Red Robin's leadership clearly prioritised in selecting its refranchising partners. The transactions are expected to close in the second half of 2026, with the company planning to update its financial guidance once the deals are finalised. For a brand navigating a complex financial environment, the successful execution of these agreements would mark a significant turning point.

Red Robin Strikes Two Major Refranchising Deals Worth $72.5 Million

Op Burgers Takes On 69 Units Across Eight States

Kuber Acquires 17 Pacific Northwest Locations for $10 Million

A Third Deal Brings the Combined Refranchising Total to Nearly $96 Million

Proceeds Will Go Toward Debt Reduction and Refinancing Priorities

Red Robin Sells 86 Locations to Franchisees in Major Deal

Red Robin Strikes Two Major Refranchising Deals Worth $72.5 Million

Op Burgers Takes On 69 Units Across Eight States

Kuber Acquires 17 Pacific Northwest Locations for $10 Million

A Third Deal Brings the Combined Refranchising Total to Nearly $96 Million

Proceeds Will Go Toward Debt Reduction and Refinancing Priorities

Red Robin's CEO on What These Partnerships Mean for the Brand's Future

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Red Robin Sells 86 Locations to Franchisees in Major Deal

Red Robin Strikes Two Major Refranchising Deals Worth $72.5 Million

Op Burgers Takes On 69 Units Across Eight States

Kuber Acquires 17 Pacific Northwest Locations for $10 Million

A Third Deal Brings the Combined Refranchising Total to Nearly $96 Million

Proceeds Will Go Toward Debt Reduction and Refinancing Priorities

Red Robin's CEO on What These Partnerships Mean for the Brand's Future