Restaurant Near Oxford Valley Mall Sold As Part Of $96 Million In Deals

A staple of the dining scene near the Oxford Valley Mall in Middletown Township has changed hands.

The Red Robin Gourmet Burgers location on Middletown Boulevard was purchased from its Colorado-based corporate parent by franchisee Op Burgers LLC. The Philadelphia Business Journal first reported the sale that closed recently.

The sale is part of a 69-restaurant deal that includes the location in Warrington Township and sites in Indiana, Kentucky, Maryland, North Carolina, Ohio, South Carolina, and Virginia.

The sale is one of three separate refranchising transactions undertaken by Red Robin Gourmet Burgers this year.

In total, the chain expects to generate $96 million through the sale of 116 corporate-owned locations by the end of the year, according to corporate regulatory filings.

As part of the franchise agreements, the locations are expected to remain open and operate under the Red Robin brand.

The transactions are part of Red Robin’s “First Choice Plan,” a strategy laid out last year to curb expenses and lower outstanding debt. Proceeds from the location sales are earmarked to reduce debt obligations and address refinancing, according to company press releases.

“Our talented team has made incredible progress in the execution of our First Choice Plan over the past year, and the completion of these refranchising agreements is a critical next step in strengthening our balance sheet as we position our business for sustainable, long-term growth,” Dave Pace, President and CEO of Red Robin, said in a statement.

Pace said the buyers share a “hospitality-first mindset” and possess the resources needed to drive regional growth.

“Importantly, these transactions will advance our efforts to refinance our existing debt and increase our financial flexibility,” Pace said. “We are confident these operators will be strong partners who can help each location unlock its full potential for the benefit of our guests, team members and investors.”

Buyer Op Burgers LLC operates as part of private equity firm Alexandrite Management.

“We are excited to become Red Robin franchise owners and leverage insights from our experience as a multi-unit operator to support the Team Members who make these restaurants successful,” Op Burgers said in a statement.

During its second-quarter earnings call in August, Red Robin reported a 1.3 percent rise in comparable restaurant revenue. However, the company experienced a 0.2 percent dip in overall guest traffic, alongside a drop in total revenue driven by restaurant closures and a $4 million increase in marketing expenses.