Red Robin has closed its restaurant at Crossroads in Cary, North Carolina, and sold the property to Birmingham-based commercial developer Capital Growth Buchalter for $3.3 million as the casual dining chain continues its aggressive restructuring effort.
The closure marks one of several red robin closings announced as part of the company’s “First Choice Plan,” launched in July 2025 to reduce debt and stabilize the chain’s financial position.
Red Robin originally announced plans to close up to 70 underperforming locations. However, restructuring efforts proved successful enough that the company removed 20 locations from that list, bringing the revised target back to 70 closures spread across multiple years. The chain closed 23 locations in 2025 as leases expired and expects to close approximately 20 more in 2026.
Beyond closures, Red Robin has pursued an aggressive refranchising strategy. In June 2026, the company announced the sale of 116 restaurants to multiple operators for a combined $96 million. The deals included the sale of 69 units in eight states to OP Burgers LLC for $62.5 million, 17 units in Oregon and Washington to Kuber entities for $10 million, and 30 locations in Washington and Western Idaho to Evergreen Dining LLC for $23.5 million.
The restructuring has shown measurable results. Red Robin’s earnings before interest, taxes, depreciation and amortization increased by 53% to $69.7 million in 2025, according to Restaurant Business. CEO Dave Pace said in the company’s fourth-quarter 2025 earnings call that Red Robin had improved about 20 restaurants previously identified as potential closures, moving them off the closure list to a performance level equal to the rest of the system.
Red Robin operates approximately 475 restaurant locations across the U.S. and Canada, with about 81% company-owned and 19% franchised. The chain’s efforts reflect broader challenges facing casual dining operators, which have faced pressure from inflation, labor costs, and shifting consumer preferences. Other casual dining chains have struggled more severely: FAT Brands filed for Chapter 11 bankruptcy in January 2026 and closed all Smokey Bones locations by April, while On The Border Mexican Grill & Cantina filed for Chapter 7 liquidation in June 2026.
Sources
- TheStreet (via Yahoo Finance) — Confirmed Cary closure, $3.3 million sale to Capital Growth Buchalter, 116 restaurant sales totaling $96 million, removal of 20 locations from closure list, 23 closures in 2025, 20 expected closures in 2026, 53% EBITDA increase to $69.7 million in 2025, CEO Dave Pace quote on improved restaurants, First Choice Plan launch in July 2025, company location count and ownership structure.
- Triangle Business Journal — Confirmed Red Robin Cary closure at Crossroads, $3.3 million sale to Capital Growth Buchalter, property redevelopment plans.
- Restaurant Business — Confirmed 53% EBITDA increase to $69.7 million in 2025, 20 locations removed from closure list, 20 expected closures in 2026.
