EAST BRUNSWICK – A popular family-friendly site, Red Robin is set to close on June 22.
As reported in March, Red Robin is closing up to 70 locations in the next five years due to financial challenges and a strategy to improve overall business performance. The first 10 to 15 closures are expected this year.
But the township's Red Robin closure has more to do with redevelopment plans than with the corporation's closure plans.
According to Maurice Zekaria, owner of Paramount Realty, he asked Red Robin to terminate the lease.
The restaurant, located next to Barnes and Noble inside the Brunswick Square Mall on Route 18, opened on Aug. 7, 2017. Most recently, Bar Louie, the restaurant next door to Red Robin, abruptly shut its doors in March.
"That was all part of our plan," Zekaria said, noting the restaurant still had several years left on the lease. "That was not their plan. That was my plan. We negotiated a settlement of termination so that they can leave early. We needed their space. We needed the Bar Louie space which we got back thankfully. We need all these spaces to do what we want with the redevelopment of the mall. We asked them and worked out an early termination."
It is a coincidence that Red Robin is looking to close stores as part of their own restructuring plan, Zekaria said.
While Red Robin company has not released a list of specific locations on the chopping block, New Jersey has 12 Red Robin locations with three in the Central Jersey area − East Brunswick, South Plainfield and Woodbridge. The South Plainfield and Woodbridge sites do not appear to be closing at this time.
Shutting the underperforming restaurants, which had store-level operating losses of $6 million, will help the chain reinvest in the system and pay down debt.
Red Robin's total revenues for 2024 are $1.25 billion, a decrease of $54.5 million when compared to 2023, according to a February earnings release. Red Robin's net loss was $77.5 million in 2024, compared to a net loss of $21.2 million in 2023, the company said.
In April, Red Robin announced a leadership transition with then-President/CEO G.J. Hart to step down and then-Chairman David A. Pace appointed as his successor.
The future of the mall is bright, said Mayor Brad Cohen, when asked about the Red Robin closure.
"The area is under redevelopment and there is a greater plan to redefine the retail and entertainment at the mall," Cohen said. "We are certain that when announced, folks will be very happy."
In March, the East Brunswick Township Council designated Brunswick Square Mall and neighboring properties as a condemnation redevelopment area. The designation is part of a larger plan to revitalize the Route 18 corridor, Cohen said.
Paramount Realty, owner of the 754,299-square-foot mall built in 1973, had requested the township to consider it for redevelopment, Cohen said. They purchased the site in November 2023.
The township plans to transform the area into a hub for recreation, entertainment, and services.
Besides the mall itself, the redevelopment area includes standalone properties Olive Garden, Firestone Complete Auto Care service center and Habit Burger, as well as a one-story retail building, which is home to a pawn/cash for gold shop, pharmacy and cigar store.
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Cheryl Makin is an award-winning feature, news and education reporter forMyCentralJersey.com, part of the USA Today Network. Contact: [email protected] or@CherylMakin. To get unlimited access, please subscribe or activate your digital account today.