Red Robin refranchises 86 units for $72.5M

Since May, the chain has entered three agreements to offload over 100 restaurants to franchisees as it works to raise capital to pay down debt.

Red Robin has sold 86 company-owned restaurants to experienced multi-unit operators in two transactions worth a combined $72.5 million, the company said in a Monday press release.

Op Burgers is buying 69 units in Kentucky, Indiana, Maryland, Ohio, North Carolina, Pennsylvania, South Carolina and Virginia for $62.5 million. OP Burgers, is a portfolio company of Alexandrite Management, a private investment firm that builds and grows profitable companies, according to the press release. OP Burgers’ management team consists of multi-unit restaurant operators.

Kuber Oregon and Kuber Washington are acquiring 17 units in Oregon and Washington for $10 million. Kuber Management is led by Aman Sharma, an experienced franchise operator who has worked in hospitality, travel centers and food service sectors. He has experience in establishing and scaling multiple brands and businesses, according to the press release.

These transactions, which are expected to close during the second half of 2026, come a few weeks after Red Robin sold 30 company units to Evergreen Dining for $23.5 million as part of its refranchising and turnaround strategy. Red Robin is focused on improving its operations and finances while working to reduce expenses and debt.

The chain has now raised $96 million across the three transactions, with net proceeds set to pay down outstanding debt.

As of the end of the first quarter, Red Robin had 469 units, of which 90 were franchised. These latest transactions bring the brand to 206 franchised units and 263 company-owned units, just about in line with its goal to be around 65% company-owned.

“Strengthening our financial foundation remains a key priority for the Red Robin team and these transactions are a major step forward toward achieving our goal,” Dave Pace, Red Robin president and CEO, said in a statement. “Our partnerships with Op Burgers and Kuber introduce experienced operators into the Red Robin system. These teams bring proven track records of delivering exceptional guest experiences and the demonstrated ability to grow into the future.”