Red Robin customers could soon see changes at dozens of restaurants as the casual dining chain moves forward with a major refranchising effort designed to improve its financial position.
In June 2026, Red Robin Gourmet Burgers announced plans to sell 86 company-owned restaurants to franchise operators. The move is part of the company’s broader turnaround strategy aimed at reducing debt, strengthening cash flow, and creating a more asset-light business model.
Red Robin plans to sell 86 restaurants
The company revealed the plan during its Investor Day presentation on June 11. Executives said the sale of 86 company-operated locations could generate approximately $50 million to $60 million in proceeds.
Red Robin expects to complete the transactions over the next several years, with the restaurants continuing to operate under the Red Robin brand. Customers are not expected to see immediate closures as a result of the strategy.
The company currently operates hundreds of restaurants across the United States and Canada through a combination of company-owned and franchised locations.
Part of a broader turnaround effort
The restaurant sales are one component of Red Robin’s effort to improve profitability and reduce debt. Company leaders outlined plans to focus on operational improvements, menu innovation, and increased franchise ownership.
Many restaurant chains have embraced franchising in recent years because it allows companies to collect royalty revenue while reducing direct operating costs and capital expenditures.
Red Robin executives believe the strategy will help create a more sustainable long-term business model while providing additional financial flexibility.
What customers can expect
For now, diners should not expect widespread restaurant closures. Instead, most locations included in the plan are expected to remain open under new ownership.
The announcement reflects a growing trend across the restaurant industry as brands look for ways to improve performance amid ongoing economic pressures, including higher labor costs and changing consumer spending habits.
Red Robin expects the refranchising effort to play a key role in its long-term recovery strategy.
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