Red Robin Continues Restructuring Efforts, Closing Restaurants to Meet Debt Reduction Goals

Red Robin Gourmet Burgers has been making significant strides in its efforts to restructure and revitalize the company, with the closure of another restaurant in North Carolina as part of its plan to close up to 70 underperforming locations. Launched in July 2025, the company's 'First Choice Plan' aims to refranchise stores, cut expenses, and reduce debt.

The most recent closure affects the Crossroads location in Cary, North Carolina, which is slated to be sold to Birmingham, Alabama-based commercial developer Capital Growth Buchalter for $3.3 million. This move is part of the company's broader strategy to reduce debt and position itself for refinancing. Red Robin has not immediately responded to a request for comment.

Red Robin's restructuring efforts have seen the company close 23 locations in 2025, as leases expired and it repaid $20.3 million in debt by mid-year. Despite this, the company has managed to pull about 20 locations off the original closure list, with Red Robin CEO Dave Pace stating that these remaining restaurants have improved enough to be spared. However, the company still expects to close roughly 20 additional locations in 2026 as leases expire.

In a statement announcing the sale of 30 restaurants in Washington and western Idaho to multi-unit operator Evergreen Dining LLC for $23.5 million, Mr. Pace expressed confidence in the partnership, stating that 'We are confident Evergreen Dining is the right partner to accelerate growth at these locations.' This deal marks a significant milestone in Red Robin's efforts to revitalize its brand and operations.

The company's decision to close underperforming locations is not unique to Red Robin. Other casual dining chains have faced significant challenges in recent years, with some shutting down entirely. FAT Brands Inc., for example, filed for Chapter 11 bankruptcy in January 2026 and moved to close 15 underperforming Smokey Bones locations and convert 19 units to its Twin Peaks brand. Furthermore, On The Border Mexican Grill & Cantina has undergone two separate bankruptcy proceedings in little more than a year, with the chain closing nearly 80 locations before being purchased out of bankruptcy in May.

It is clear that the casual dining industry is facing significant pressures, with a number of well-known brands struggling to stay afloat. However, Red Robin's efforts to restructure and revitalize the company demonstrate a commitment to adapting to changing market conditions and positioning itself for future success. The company's focus on refranchising stores, cutting expenses, and reducing debt is a crucial step towards ensuring the long-term sustainability of the business.

Looking ahead, it will be essential for Red Robin to continue to evolve and adapt to the changing landscape of the casual dining industry. The company will need to balance its commitment to debt reduction with a focus on investing in its remaining locations and improving the overall customer experience. By doing so, Red Robin can establish itself as a leader in the industry and drive long-term growth and success.