Document:

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[PEPSI-COLA COMPANY LETTERHEAD]
                                                                   EXHIBIT 10.27

     *** Confidential treatment has been requested as to certain portions
     of this agreement. Such omitted confidential information has been
     designated by an asterisk and has been filed separately with the
     Securities and Exchange Commission pursuant to Rule 406, under the
     Securities and Exchange Act of 1933, as amended, and the Commission's
     rules and regulations promulgated under the Freedom of Information
     Act, pursuant to a request for confidential treatment.***

                        FOUNTAIN BEVERAGE SALES AGREEMENT

This fountain beverage agreement (this "Agreement") between Pepsi-Cola Company
("Pepsi-Cola"), a division of PepsiCo, Inc., a North Carolina corporation with
its principal place of business at 700 Anderson Hill Road, Purchase, New York
10577, on its own behalf and on behalf of the Pepsi/Lipton Tea Partnership (the
"Partnership"), and Red Robin International, Inc., a Nevada corporation with its
principal place of business at 5575 DTC Parkway, Suite 110, Englewood, CO 80111,
(the "Customer") which sets forth the understanding of the parties with respect
to the purchase and promotion of Pepsi-Cola's and the Partnership's fountain
beverage products by Customer's corporate-owned outlets only. Pepsi-Cola shall,
by execution of separate and independent agreement(s) in the form of Annex A
attached hereto, make available to Customer's franchisees and their respective
franchise-owned outlets, similar programs and benefits.

1.   Term
     ----
     The term of this Agreement (the "Term") shall commence on April 1, 2000 and
     expire, upon the later of March 31, 2005, or at such time as purchases of
     Gallons by Customer's Outlets (as defined herein) meet or exceed a total of
     735,000 Gallons (the "Aggregate Volume"). When fully executed, this
     Agreement will constitute a binding obligation of both parties until such
     time as the foregoing commitment of the Customer has been fulfilled. For
     purposes of this Agreement the term "Year" shall mean a twelve (12) month
     period during the Term beginning on the first day of the Term or
     anniversary thereof.

2.   Scope
     -----
     During the Term Customer shall purchase postmix products (the "Postmix
     Products") from Pepsi-Cola and the Partnership for use in preparing
     fountain beverage products sold under the trademarks of PepsiCo and the
     Partnership (the "Fountain Products") to be sold in the Customer's existing
     corporate-owned outlets operated under the Red Robin trademark and
     ---------------
     corporate-owned outlets that may be opened or acquired under the Red Robin
     ---------------
     trademark by the Customer during the Term (the "Outlets"). Except to the
     extent indicated to the contrary, for purposes of this Agreement the term
     "Gallons" shall mean gallons of Pepsi-Cola corporate brand Postmix Products
     purchased by Outlets from Pepsi-Cola and the Partnership during the Term.
     Pepsi-Cola shall make its Postmix Products available to Customer at its
     national account prices in effect from time to time under Pepsi-Cola's and
     the Partnership's respective national account programs ("National Account
     Prices").

3.   Exclusivity
     -----------
     It is the intention of the parties that Pepsi-Cola will be the exclusive
     fountain beverage supplier to the Customer during the Term. Accordingly,
     except as provided below, the Fountain Products will be the exclusive
     fountain beverages sold, dispensed or otherwise made available, or in any
     way advertised, displayed, or promoted at or in connection with the Outlets
     by any method or through any medium whatsoever (including, without
     limitation, print, television, radio, internet, coupons, in-store displays
     and signage). In the event that Customer determines to offer fountain
     beverages in the Outlets beyond those listed in paragraph 7.1, such further
     fountain beverages will be those Fountain Products as Pepsi-Cola or the
     Partnership may offer for sale during the Term.

<PAGE>

     3.1  Limited Exception.
          -----------------
     Customer may offer Dr. Pepper (regular flavor only) and Seven-Up as a
     fountain beverage in Customer Outlets during the Term. In the event that
     Customer seeks to offer a fountain beverage flavor not offered by or
     available from Pepsi-Cola and/or its Bottlers, then Customer shall be
     permitted to offer such fountain beverage flavor; provided, however, that
                                                       --------
     under no circumstances shall Customer offer or make available fountain
     products made or manufactured or distributed by The Coca-Cola Company, its
     affiliates or licensees.

     3.2  Packaged Products.
          -----------------
     In the event that Customer determines to offer packaged beverage products
     (including carbonated soft drink, teas, waters, juices, and/or coffee based
     beverages) in the Outlets during the Term ("Packaged Products"), then
     Customer will purchase such Packaged Products from Pepsi-Cola's licensed
     bottlers in whose territories the Outlets are located.

4.   Funding
     -------
     In consideration of Customer's performance of its obligations hereunder,
     Pepsi-Cola shall make the following funding available to Customer:

     4.1  Conversion Funds.
          ----------------
     Within thirty (30) days following execution of this Agreement Pepsi-Cola
     will advance to Customer conversion funds in the amount of ***
     ("Conversion Funds") to assist Customer in offsetting the cost of
     conversion to the Fountain Products. Customer shall earn such Conversion
     Funds Years One through Five at the rate of *** per Gallon based upon the
     purchase of *** Gallons during Years One through Five.

     At the end of Year Five, Pepsi-Cola will reconcile the Conversion Funds
     advanced to Customer as follows: Pepsi-Cola will multiply the number of
     Gallons purchased by Customer during Years One through Five by the above
     rate per Gallon and will compare that result with the amount advanced. The
     resulting amount, if positive, will be paid by Pepsi-Cola to Customer, or,
     if negative, will be immediately repaid to Pepsi-Cola.

     4.2  Business Development Funds
          --------------------------
     Commencing in Year Two, Pepsi-Cola will advance Business Development Funds
     to the Customer an amount representing an advance at the rate of *** per
     Gallon based upon the number of Gallons purchased by Outlets during the
     prior Year ("Advanced Business Development Funds"). For Year One only, the
     amount advanced as Business Development Funds shall be equal to *** based
     upon an estimated volume of *** Gallons to be purchased by Customer during
     Year One. Business Development Funds shall be spent by Customer to offset
     costs and expenses associated with at least one jointly approved business
     development programs per Year including but not limited to local and
     national marketing programs, local media purchases, and team member
     activation initiatives.

     At the end of each Year, Pepsi-Cola will reconcile the Business Development
     Funds advanced to Customer as follows: Pepsi-Cola will multiply the number
     of Gallons purchased by Customer during the Year by the above rate per
     Gallon and will compare that result with the amount advanced. The resulting
     amount, if positive, will be paid by Pepsi-Cola to Customer, or, if
     negative, will, at Pepsi-Cola's discretion, be either offset against
     amounts that may concurrently or thereafter become due to Customer under
     this Agreement or will be paid by Customer to Pepsi-Cola within 30 days
     following Pepsi-Cola's invoice therefor.

<PAGE>

     4.3  Merchandising Funds
          -------------------
     Throughout the Term, Customer shall earn such merchandising funds at the
     rate of *** per Gallon on all Gallons ("Merchandising Funds"). For Year
     One only, an amount equal to *** shall be advanced as Merchandising
     Funds based upon an estimated volume of *** Gallons to be purchased by
     Customer during Year One.

     At the end of the Year One, Pepsi-Cola will reconcile the Merchandising
     Funds advanced to Customer as follows: Pepsi-Cola will multiply the number
     of Gallons purchased by Customer during Year One by the above rate per
     Gallon and will compare that result with the amount advanced. The resulting
     amount, if positive, will be paid by Pepsi-Cola to Customer, or, if
     negative, will be immediately repaid to Pepsi-Cola.

     For Year Two through the remainder of the Term, amounts earned by Customer
     as Merchandising Funds shall be paid to Customer following the end of the
     Year. Amounts earned by Customer shall be spent to offset costs and
     expenses associated with at least two jointly approved merchandising
     programs per Year, including but not limited to brand logos on menus,
     branded glassware, patio umbrellas and charity sponsorships.

     4.4 Corporate Beverage Development Funds
     ------------------------------------
     Throughout the Term, Customer shall earn such beverage development funds at
     the rate of *** per Gallon on all Gallons ("Corporate Beverage Development
     Funds"). For Year One only, and within thirty (30) days following execution
     of this Agreement, Pepsi-Cola will advance Corporate Beverage Development
     Funds in the amount of *** based upon an estimated volume of *** Gallons to
     be purchased by Customer during Year One.

     At the end of Year One, Pepsi-Cola will reconcile the Beverage Development
     Funds advanced to Customer as follows: Pepsi-Cola will multiply the number
     of Gallons purchased by Customer during Year One by the above rate per
     Gallon and will compare that result with the amount advanced. The resulting
     amount, if positive, will be paid by Pepsi-Cola to Customer, or, if
     negative, will be immediately repaid to Pepsi-Cola.

     For Year Two through the remainder of the Term, amounts earned by Customer
     as Corporate Beverage Development Funds shall be paid to Customer following
     the end of the Year. Amounts earned by Customer shall be spent by Customer
     to offset costs and expenses associated with Customer's system-wide (to the
     benefit of Customer and its Franchisees, in aggregate) beverage development
     programs jointly approved by Customer and Pepsi-Cola.

     4.5  Growth Incentive Funds
          ----------------------
     Within thirty (30) days following execution, Pepsi-Cola will advance to
     Customer the sum of *** as growth incentive funds ("Growth Incentive
     Funds") deemed earned by Customer over the Term and at the rate of *** per
     each eligible incremental annual Gallon earned in excess of Customer's
     estimated annual volume of *** Gallons per Year of the Term ("Growth
     Gallons"). Accordingly, the *** advanced as Growth Incentive Funds is based
     upon Customer's purchase of *** Growth Gallons over the Term deemed
     advanced at a rate of *** per Growth Gallon.

     At the end of the Term, Pepsi-Cola will reconcile the Growth Incentive
     Funds advanced to Customer as follows: Pepsi-Cola will multiply the number
     of Growth Gallons actually purchased by Customer for each Year of the Term
     and will compare that result with the amount advanced. The resulting
     amount, if positive, will be paid by Pepsi-Cola to Customer, or, if
     negative, will be immediately repaid to Pepsi-Cola.

<PAGE>

     4.6  Fountain Equipment Funds
          ------------------------
     For each Year throughout the Term, Pepsi-Cola will accrue fountain
     equipment funds ("Fountain Equipment Funds") for the Customer at the rate
     of *** per Gallon on all Gallons purchased by Outlets.

     For those Customer Outlets where fountain dispensing equipment is provided
     by Pepsi-Cola during the Term ("Pepsi-Cola Fountain Equipment"), then any
     and all amounts accrued by Pepsi-Cola for those particular Outlets
     ("Equipment Credits") shall be used by Pepsi-Cola to offset costs incurred
     by Pepsi-Cola in providing and installing Pepsi-Cola Fountain Equipment
     ("Equipment Costs"). At such time as Equipment Credits equal Equipment
     Costs for Outlets where Pepsi-Cola Fountain Equipment is installed, then at
     such time, legal title to such Pepsi-Cola Fountain Equipment shall be
     transferred to Customer.

     For those Customer Outlets where Pepsi-Cola Fountain Equipment is not
     provided, and all fountain dispensing equipment is provided by Customer,
     any amounts accrued as Fountain Equipment Funds during a given Year for
     such Outlets shall be paid to Customer.

     4.7  Convention Funds
          ----------------
     Throughout the Term, Pepsi-Cola shall make available to Customer amounts as
     annual convention funds as follows - not to exceed *** each Year for Years
     One and Two, and not to exceed *** each Year for Years Three, Four and Five
     ("Convention Funds"), which annual amount may be spent, at Pepsi-Cola's
     discretion, in support of Customer's annual Franchisee and General Manager
     Conference. Amounts of Convention Funds remaining unspent at the end of any
     given Year shall belong to Pepsi-Cola.

     4.8  Price Protection Funds
          ----------------------
     Commencing in Year Two and each Year thereafter for the remainder of the
     Term, in the event that the gross weighted average National Account price
     ("Gross Weighted Average NAP") per Gallon of Postmix Products for any such
     Year increases by more than *** over the Gross Weighted Average NAP per
     Gallon for the immediately preceding Year, then Pepsi-Cola shall rebate to
     Customer for the Year under consideration an amount of money equal to the
     sum of: (a) that portion of any such price increase in excess of *** of the
     prior Year's Gross Weighted Average NAP, plus (b) the per Gallon rebate, if
     any, calculated for any Year prior to the Year under consideration
     multiplied by the actual number of Gallons purchased by the Customer in the
     Year under consideration.

     4.9  Discretionary A&M Funds
          -----------------------
     For each Year throughout the Term, Customer shall accrue discretionary A&M
     funds at the rate of *** per Gallon on all Gallons, which accrued amounts
     may be dispensed by Pepsi-Cola, at Pepsi-Cola's discretion, for
     miscellaneous joint advertising and marketing purposes during the
     respective Year ("Discretionary A&M Funds"). Any amounts accrued and
     unspent at the end of any given Year shall belong to Pepsi-Cola.

     4.10  Payment of Funds.
           ----------------
     Unless otherwise specifically provided herein, all payments owing to
     Customer hereunder will be made within ninety (90) days following the end
     of each Year.

<PAGE>

5.   Pepsi-Cola Fountain Equipment
     -----------------------------
     Upon execution of this Agreement or at such time as the useful life of
     existing units of fountain beverage dispensing equipment in each Customer
     Outlet expires, Pepsi-Cola will make available and provide each Outlet with
     a mutually agreed to number of units of Pepsi-Cola Fountain Equipment.
     Customer agrees to cooperate with Pepsi-Cola in maintaining Pepsi-Cola
     Fountain Equipment in good working order throughout the Term, and
     Pepsi-Cola agrees to provide maintenance in accordance with the Service
     Program set forth herein.

6.   Service Program
     ---------------
     Pepsi-Cola will cause service to be provided to Pepsi-Cola Fountain
     Equipment as follows.

     Each Year, each Customer Outlet shall be entitled, at no charge, to a
     maximum of four (4) service calls for the Pepsi-Cola Fountain Equipment,
     which shall include two (2) preventative maintenance calls. Service shall
     be made available to Customer Outlets seven days per week, twenty-four
     hours per day, via dispatch and /or answering machine.

     All service and maintenance calls in excess of those specified above, as
     well as the costs of parts used, shall be charged to Customer at
     Pepsi-Cola's prevailing rates for service. Pepsi-Cola will provide services
     through its licensed bottlers or such other service providers as it may
     designate.

7.   Performance Requirements
     ------------------------
     This Agreement, including all of Pepsi-Cola's support to Customer as
     described above, is contingent upon the Customer complying with the
     following performance criteria throughout the Term in or with respect to
     each of the Outlets.

     7.1  Brands.
          ------
     At least the following Fountain Products brands will be served in all
     Outlets: Pepsi, Diet Pepsi, Mountain Dew, Mug Root Beer, Lemonade and
     Hawaiian Punch. In the event that both Dr Pepper and Seven-Up are dispensed
                                       ----           ---
     at any of the Outlets through the Pepsi-Cola Fountain Equipment, then the
     Fountain Equipment Funds payable hereunder will be reduced by *** per
     Gallon.

     7.2  Brand Identification.
          --------------------
     There will be brand identification for each Fountain Product served on all
     menus and postmix dispensing valves.

     7.3  No Re-Sale.
          ----------
     Customer will use the Postmix Products only to prepare the Fountain
     Products: (i) in accordance with procedures and standards established by
     Pepsi-Cola and the Partnership; and (ii) only for immediate or imminent
     consumption and shall not resell the Postmix Products.

     7.4  List of Customer Outlets.
          ------------------------
     Customer will provide Pepsi-Cola, upon execution of this Agreement a list
     of all Outlets, including name, location, telephone number(s) and points of
     contact for each Outlet, and thereafter for the remainder of the Term,
     Customer shall continue to be responsible for promptly notifying
     Pepsi-Cola, in writing, of each Outlet that is opened, acquired, closed or
     sold, and the relevant information pertaining thereto.

<PAGE>

8.   General Terms
     -------------

     8.1  Termination.
          -----------
     Either party may terminate this Agreement if the other commits a material
     breach of this Agreement; provided, however, that the terminating party has
     given the other party written notice of the material breach and the other
     party has failed to remedy or cure the material breach within one hundred
     twenty (120) days of such notice.

     8.2  Remedies.
          --------
     If Pepsi-Cola terminates this Agreement for material breach or Customer
     fails to purchase and serve the Fountain Products in Outlets throughout the
     Term, then in addition to any other remedies, to which Pepsi-Cola may be
     entitled by reason of such material breach, the Customer shall immediately
     make the following payments to Pepsi-Cola:
          1.   A payment to Pepsi-Cola reflecting reimbursement for all funding
               previously advanced by Pepsi-Cola but not earned by the Customer
               pursuant to the terms of this Agreement plus compounded interest,
               on such unearned funding, at the rate of 11% per year based on
               the time between commencement of the Agreement through the date
               of termination; and
          2.   At Pepsi-Cola's election, Customer shall either reimburse
               Pepsi-Cola for the current fair market value of the Pepsi-Cola
               Fountain Equipment (as reasonably determined by Pepsi-Cola,
               applying generally accepted accounting standards) or surrender to
               Pepsi-Cola all Pepsi-Cola Fountain Equipment installed in
               Outlets, whether leased, loaned or otherwise made available by
               Pepsi-Cola;

     8.3  Expiration.
          ----------
     Upon expiration of this Agreement, if Customer has not entered into a
     further agreement with Pepsi-Cola for the purchase of Fountain Products,
     Customer shall, at Pepsi-Cola's election, either reimburse Pepsi-Cola for
     the current fair market value of the Pepsi-Cola Fountain Equipment (as
     reasonably determined by Pepsi-Cola, applying generally accepted accounting
     standards) or surrender to Pepsi-Cola all Pepsi-Cola Fountain Equipment
     installed in Outlets, whether leased, loaned or otherwise made available by
     Pepsi-Cola.

     8.4  Right of Offset.
          ---------------
     Pepsi-Cola reserves the right to withhold payments due hereunder as an
     offset against amounts not paid by Customer for Postmix Products ordered by
     and delivered to Customer.

     8.5  Customer Representation.
          -----------------------
     Customer represents and warrants to Pepsi-Cola that the execution, delivery
     and performance of this Agreement by Customer will not violate any
     agreements with, or rights of, third parties.

     8.6  Entire Agreement.
          ----------------
     This Agreement contains the entire agreement between the parties hereto
     regarding the subject matter hereof and supersedes all other agreements
     between the parties, including prior funding commitments relating to the
     purchase of the Postmix Products by Customer. This Agreement may be amended
     or modified only by a writing signed by each of the parties.

     8.7  Non-Disclosure.
          --------------
     Except as may otherwise be required by law or legal process, neither party
     shall disclose to unrelated third parties the terms and conditions of this
     Agreement without the consent of the other.

     8.8  Governing Law.
          -------------
     This Agreement shall be governed by the laws of the State of New York.

<PAGE>

     8.9  Force Majeure.
          -------------
     In the event that Pepsi-Cola is unable to deliver the Postmix Products
     and/or Packaged Products at any time during the Term attributable to events
     and circumstances beyond the control of Pepsi-Cola and/or bottlers licensed
     by Pepsi-Cola and the Partnership, i.e., civil unrest, labor strikes,
     natural disasters, acts of God, then during such periods of interruption,
     the exclusivity provisions of this Agreement shall be suspended until such
     time as the interruption is resolved, at which time the parties shall
     resume their respective performance requirements under this Agreement.

If the foregoing correctly sets forth our understanding, please sign below to
confirm our agreement.

PEPSI-COLA COMPANY                          RED ROBIN INTERNATIONAL, INC.
A Division of PepsiCo, Inc.

By   /s/ ILLEGIBLE                          By  /s/ MICHAEL J. SNYDER
   -----------------------                     -----------------------
Title: ILLEGIBLE                            Title:  CEO
      --------------------                        --------------------
Date:  2-2-00                               Date:  Feb. 2, 2000
     ---------------------                       ---------------------

<PAGE>

                                     ANNEX A
                                     -------

                               FORM OF FRANCHISEE
                        FOUNTAIN BEVERAGE SALES AGREEMENT

This fountain beverage agreement (this "Agreement") between, on the one hand,
Pepsi-Cola Company ("Pepsi-Cola"), a division of PepsiCo, Inc., a North Carolina
corporation with its principal place of business at 700 Anderson Hill Road,
Purchase, New York 10577, on its own behalf and on behalf of the Pepsi/Lipton
Tea Partnership (the "Partnership"), and, on the other hand, __________, a
_________ corporation with its principal place of business at ______________,
(the "Franchisee"), as franchisee of Red Robin International, Inc. (its
"Franchisor") sets forth the understanding of the parties with respect to the
purchase and promotion of Pepsi-Cola's and the Partnership's fountain beverage
products.

1.   Term
     ----
     The term of this Agreement shall commence on ______________ and expire,
     upon the later of March 31, 2005, or at such time as Franchisee's purchases
     of Gallons meet or exceed a total of ________ Gallons (the "Term"). When
     fully executed, this Agreement will constitute a binding obligation of both
     parties until such time as the foregoing commitment of the Franchisee has
     been fulfilled. For purposes of this Agreement, the term "Year" shall mean
     a twelve (12) month period during the Term beginning on the first day of
     the Term or anniversary thereof.

2.   Scope
     -----
     During the Term Franchisee shall purchase postmix products (the "Postmix
     Products") from Pepsi-Cola and the Partnership for use in preparing
     fountain beverage products sold under the trademarks of PepsiCo and the
     Partnership (the "Fountain Products") to be sold in the Franchisee's
     existing franchisee-owned outlets operated under the Red Robin trademark
              ----------------
     and franchisee-owned outlets that may be opened or acquired under the Red
         ----------------
     Robin trademark by the Franchisee during the Term (the "Outlets"). Except
     to the extent indicated to the contrary, for purposes of this Agreement the
     term "Gallons" shall mean gallons of Pepsi-Cola corporate brand Postmix
     Products purchased by Outlets from Pepsi-Cola and the Partnership during
     the Term. Pepsi-Cola shall make its Postmix Products available to
     Franchisee at its national account prices in effect from time to time under
     Pepsi-Cola's and the Partnership's respective national account programs
     ("National Account Prices").

3.   Exclusivity
     -----------
     It is the intention of the parties that Pepsi-Cola will be the exclusive
     fountain beverage supplier to the Franchisee during the Term. Accordingly,
     except as provided below, the Fountain Products will be the exclusive
     fountain beverages sold, dispensed or otherwise made available, or in any
     way advertised, displayed, or promoted at or in connection with the Outlets
     by any method or through any medium whatsoever (including, without
     limitation, print, television, radio, internet, coupons, in-store displays
     and signage). In the event that Franchisee determines to offer fountain
     beverages in the Outlets beyond those listed in paragraph 7.1, such further
     fountain beverages will be those Fountain Products as Pepsi-Cola or the
     Partnership may offer for sale during the Term.

<PAGE>

     3.1  Limited Exception.
          -----------------
     Franchisee may offer Dr. Pepper (regular flavor only) and Seven-Up as a
     fountain beverage in the Franchisee Outlets during the Term. . In the event
     that Franchisee seeks to offer a fountain beverage flavor not offered by or
     available from Pepsi-Cola and/or its Bottlers, then Franchisee shall be
     permitted to offer such fountain beverage flavor; provided, however, that
                                                       --------
     under no circumstances shall Customer offer or make available fountain
     products made or manufactured or distributed by The Coca-Cola Company, its
     affiliates or licensees.

     3.2  Packaged Products.
          -----------------
     In the event that Franchisee determines to offer packaged beverage products
     (including carbonated soft drink, teas, waters, juices, and/or coffee based
     beverages) in the Outlets during the Term ("Packaged Products"), then
     Franchisee will purchase such Packaged Products from Pepsi-Cola's licensed
     bottlers in whose territories the Outlets are located.

4.   Funding
     -------
In consideration of Franchisee's performance of its obligations hereunder,
Pepsi-Cola shall make the following funding available to Franchisee:

     4.1  Conversion Funds.
          ----------------
     Within thirty (30) days following execution of this Agreement Pepsi-Cola
     will advance to Franchisee conversion funds in the amount of $__________
     ("Conversion Funds") to assist Franchisee in offsetting the cost of
     conversion to the Fountain Products. Franchisee shall earn such Conversion
     Funds during Years One through Five at the rate of *** per Gallon based
     upon the purchase of ________ Gallons during Years One through Five.

     At the end of Year Five, Pepsi-Cola will reconcile the Conversion Funds
     advanced to Franchisee as follows: Pepsi-Cola will multiply the number of
     Gallons purchased by Franchisee during Years One through Five by the above
     rate per Gallon and will compare that result with the amount advanced. The
     resulting amount, if positive, will be paid by Pepsi-Cola to Franchisee,
     or, if negative, will be immediately repaid to Pepsi-Cola.

     4.2  Business Development Funds
          --------------------------
     Commencing in Year Two, Pepsi-Cola will advance Business Development Funds
     to the Franchisee an amount representing an advance at the rate of ***
     per Gallon based upon the number of Gallons purchased by Outlets during the
     prior Year ("Advanced Business Development Funds"). For Year One only, the
     amount advanced as Business Development Funds shall be equal to $_______
     based upon an estimated volume of _______ Gallons to be purchased by
     Franchisee during Year One. Business Development Funds shall be spent by
     Franchisee to offset costs and expenses associated with at least two
     jointly approved business development programs per Year including but not
     limited to local and national marketing programs, local media purchases,
     and team member activation initiatives.

     At the end of each Year, Pepsi-Cola will reconcile the Business Development
     Funds advanced to Franchisee as follows: Pepsi-Cola will multiply the
     number of Gallons purchased by Franchisee during the Year by the above rate
     per Gallon and will compare that result with the amount advanced. The
     resulting amount, if positive, will be paid by Pepsi-Cola to Franchisee,
     or, if negative, will, at Pepsi-Cola's discretion, be either offset against
     amounts that may concurrently or thereafter become due to Franchisee under
     this Agreement or will be paid by Franchisee to Pepsi-Cola within 30 days
     following Pepsi-Cola's invoice therefor.

<PAGE>

     4.3  Merchandising Funds
          -------------------
     Throughout the Term, Franchisee shall earn such merchandising funds at the
     rate of *** per Gallon on all Gallons ("Merchandising Funds"). For Year One
     only, an amount equal to ________ shall be advanced as Merchandising Funds
     based upon an estimated volume of _______ Gallons to be purchased by
     Franchisee during Year One.

     At the end of the Year One, Pepsi-Cola will reconcile the Merchandising
     Funds advanced to Franchisee as follows: Pepsi-Cola will multiply the
     number of Gallons purchased by Franchisee during Year One by the above rate
     per Gallon and will compare that result with the amount advanced. The
     resulting amount, if positive, will be paid by Pepsi-Cola to Franchisee,
     or, if negative, will be immediately repaid to Pepsi-Cola.

     For Year Two through the remainder of the Term, amounts earned by
     Franchisee as Merchandising Funds shall be paid to Franchisee following the
     end of the Year. Amounts earned by Franchisee shall be spent to offset
     costs and expenses associated with at least two jointly approved
     merchandising programs per Year, including but not limited to brand logos
     on menus, branded glassware, patio umbrellas and charity sponsorships.

     4.4  Beverage Development Funds
          --------------------------
     Throughout the Term, Franchisee shall earn such beverage development funds
     at the rate of *** per Gallon on all Gallons ("Beverage Development
     Funds"). For Year One only, and within thirty (30) days following execution
     of this Agreement, Pepsi-Cola will advance Franchisee Beverage Development
     Funds in the amount of ________ based upon an estimated volume of _______
     Gallons to be purchased by Franchisee during Year One.

     At the end of Year One, Pepsi-Cola will reconcile the Beverage Development
     Funds advanced to Franchisee as follows: Pepsi-Cola will multiply the
     number of Gallons purchased by Franchisee during Year One by the above rate
     per Gallon and will compare that result with the amount advanced. The
     resulting amount, if positive, will be paid by Pepsi-Cola to Franchisee,
     or, if negative, will be immediately repaid to Pepsi-Cola.

     For Year Two through the remainder of the Term, amounts earned by
     Franchisee as Beverage Development Funds shall be paid to Franchisee
     following the end of the Year. Amounts earned by Franchisee shall be spent
     by Franchisee to offset costs and expenses associated with Franchisee's
     system-wide (to the benefit of Franchisee and its Franchisees, in
     aggregate) beverage development programs jointly approved by Franchisee and
     Pepsi-Cola.

     4.5 Growth Incentive Funds
         ----------------------

     Each year throughout the Term, Pepsi Cola will offer Customer Growth
     Incentive Funds based on the incremental growth of Gallons. Each year will
     be a "Performance Period". The "Base Period" with respect to each
     Performance Period will be the immediately preceeding twelve-month period
     or Year. Pepsi-Cola and Customer will mutually agree as to the number of
     Gallons which will constitute the Base Period volume for the first Year of
     the Agreement. The number of Gallons purchased during each Performance
     Period will be compared with the number of Gallons purchased during the
     corresponding Base Period. If, and to the extent that, the number of
     Gallons purchased during any Performance Period exceeds the number of
     Gallons purchased during the corresponding Base Period, Pepsi Cola will pay
     Customer *** per gallon on all such eligible incremental Gallons.

     4.6  Fountain Equipment Funds
          ------------------------
     For each Year throughout the Term, Pepsi-Cola will accrue fountain
     equipment funds ("Fountain Equipment Funds") for the Franchisee at the rate
     of *** per Gallon on all Gallons purchased by Outlets.

<PAGE>

     For those Franchisee Outlets where fountain dispensing equipment is
     provided by Pepsi-Cola during the Term ("Pepsi-Cola Fountain Equipment"),
     then any and all amounts accrued by Pepsi-Cola for those particular Outlets
     ("Equipment Credits") shall be used by Pepsi-Cola to offset costs incurred
     by Pepsi-Cola in providing and installing Pepsi-Cola Fountain Equipment
     ("Equipment Costs"). At such time as Equipment Credits equal Equipment
     Costs for Outlets where Pepsi-Cola Fountain Equipment is installed, then
     title to such Pepsi-Cola Fountain Equipment shall be transferred to
     Franchisee.

     For those Franchisee Outlets where Pepsi-Cola Fountain Equipment is not
     provided, and all fountain dispensing equipment is provided by Franchisee,
     any amounts accrued as Fountain Equipment Funds during a given Year for
     such Outlets shall be paid to Franchisee.

     4.7  Price Protection Funds
          ----------------------
     Commencing in Year Two and each Year thereafter for the remainder of the
     Term, in the event that the gross weighted average National Account price
     ("Gross Weighted Average NAP") per Gallon of Postmix Products for any such
     Year increases by more than *** over the Gross Weighted Average NAP per
     Gallon for the immediately preceding Year, then Pepsi-Cola shall rebate to
     Franchisee for the Year under consideration an amount of money equal to the
     sum of: (a) that portion of any such price increase in excess of *** of the
     prior Year's Gross Weighted Average NAP, plus (b) the per Gallon rebate, if
     any, calculated for any Year prior to the Year under consideration
     multiplied by the actual number of Gallons purchased by the Franchisee in
     the Year under consideration.

     4.8  Payment of Funds.
          ----------------
     Unless otherwise specifically provided herein, all payments owing to
     Franchisee hereunder will be made within ninety (90) days following the end
     of each Year..

5.   Pepsi-Cola Fountain Equipment
     -----------------------------
     Upon execution of this Agreement or at such time as the useful life of
     existing units of fountain beverage dispensing equipment in each Franchisee
     Outlet expires, Pepsi-Cola will make available and provide each Outlet with
     a mutually agreed to number of units of Pepsi-Cola Fountain Equipment.
     Franchisee agrees to cooperate with Pepsi-Cola in maintaining Pepsi-Cola
     Fountain Equipment in good working order throughout the Term, and
     Pepsi-Cola agrees to provide maintenance in accordance with the Service
     Program set forth herein.

6.   Service Program
     ---------------
     Pepsi-Cola will cause service to be provided to Pepsi-Cola Fountain
     Equipment as follows. Each Year, each Outlet shall be entitled, at no
     charge, to a maximum of four (4) service calls for the Pepsi-Cola Fountain
     Equipment, which shall include two (2) preventative maintenance calls.
     Service shall be made available to Outlets seven days per week, twenty-four
     hours per day, via dispatch and /or answering machine.

     All service and maintenance calls in excess of those specified above, as
     well as the costs of parts used, shall be charged to Franchisee at
     Pepsi-Cola's prevailing rates for service. Pepsi-Cola will provide services
     through its licensed bottlers or such other service providers as it may
     designate.

7.   Performance Requirements
     ------------------------
     This Agreement, including all of Pepsi-Cola's support to Franchisee as
     described above, is contingent upon the Franchisee complying with the
     following performance criteria throughout the Term in or with respect to
     each of the Outlets.

     7.1  Brands.
          ------
     At least the following Fountain Products brands will be served in all
     Outlets: Pepsi, Diet Pepsi, Mountain Dew, Mug Root Beer, Lemonade and
     Hawaiian Punch. In the event that both Dr
                                       ----

<PAGE>

     Pepper and Seven-Up are dispensed at any of the Outlets through Pepsi-Cola
            ---
     Fountain Equipment, then the Fountain Equipment Funds payable hereunder
     will be reduced by *** per Gallon.

     7.2  Brand Identification.
          --------------------
     There will be brand identification for each Fountain Product served on all
     menus and postmix dispensing valves.

     7.3  No Re-Sale.
          ----------
     Franchisee will use the Postmix Products only to prepare the Fountain
     Products: (i) in accordance with procedures and standards established by
     Pepsi-Cola and the Partnership; and (ii) only for immediate or imminent
     consumption and shall not resell the Postmix Products either to
     non-affiliated outlets or to consumers in any form other than the Fountain
     Products.

     7.4  List of Franchisee Outlets.
          --------------------------
     Franchisee will provide Pepsi-Cola, upon execution of this Agreement a list
     of all Outlets, including name, location, telephone number(s) and points of
     contact for each Outlet, and thereafter for the remainder of the Term,
     Franchisee shall continue to be responsible for promptly notifying
     Pepsi-Cola, in writing, of each Outlet that is opened, acquired, closed or
     sold, and the relevant information pertaining thereto.

     8.0  General Terms
          -------------

     8.1  Termination.
          -----------
     Either party may terminate this Agreement if the other commits a material
     breach of this Agreement; provided, however, that the terminating party has
     given the other party written notice of the material breach and the other
     party has failed to remedy or cure the material breach within one hundred
     twenty (120) days of such notice.

     8.2  Remedies.
          --------
     If Pepsi-Cola terminates this Agreement for material breach or Franchisee
     fails to purchase and serve the Fountain Products in Outlets throughout the
     Term, then in addition to any other remedies, including but not limited to
     the recovery of lost profits, to which Pepsi-Cola may be entitled by reason
     of such material breach, the Franchisee shall immediately make the
     following payments to Pepsi-Cola:
     (1) A payment to Pepsi-Cola reflecting reimbursement for all funding
     previously advanced by Pepsi-Cola but not earned by the Franchisee pursuant
     to the terms of this Agreement; plus compounded interest, on such unearned
     funding, at the rate of 11% per year based on the time between commencement
     of the Agreement through the date of termination; and
     (2) At Pepsi-Cola's election, Franchisee shall either reimburse Pepsi-Cola
     for the current fair market value of the Pepsi-Cola Fountain Equipment (as
     reasonably determined by Pepsi-Cola, applying generally accepted accounting
     standards) or surrender to Pepsi-Cola all Pepsi-Cola Fountain Equipment
     installed in Outlets, whether leased, loaned or otherwise made available by
     Pepsi-Cola;

     8.3  Expiration.
          ----------
     Upon expiration of this Agreement, if Franchisee has not entered into a
     further agreement with Pepsi-Cola for the purchase of Fountain Products,
     Franchisee shall, at Pepsi-Cola's election, either reimburse Pepsi-Cola for
     the current fair market value of the Pepsi-Cola Fountain Equipment (as
     reasonably determined by Pepsi-Cola, applying generally accepted accounting
     standards) or surrender to Pepsi-Cola all Pepsi-Cola Fountain Equipment
     installed in Outlets, whether leased, loaned or otherwise made available by
     Pepsi-Cola.

<PAGE>

     8.4  Right of Offset.
          ---------------
     Pepsi-Cola reserves the right to withhold payments due hereunder as an
     offset against amounts not paid by Franchisee for Postmix Products ordered
     by and delivered to Franchisee.

     8.5  Franchisee Representation.
          -------------------------
     Franchisee represents and warrants to Pepsi-Cola that the execution,
     delivery and performance of this Agreement by Franchisee will not violate
     any agreements with, or rights of, third parties.

     8.6  Entire Agreement.
          ----------------
     This Agreement contains the entire agreement between the parties hereto
     regarding the subject matter hereof and supersedes all other agreements
     between the parties, including prior funding commitments relating to the
     purchase of the Postmix Products by Franchisee. This Agreement may be
     amended or modified only by a writing signed by each of the parties.

     8.7  Non-Disclosure.
          --------------
     Except as may otherwise be required by law or legal process, neither party
     shall disclose to unrelated third parties the terms and conditions of this
     Agreement without the consent of the other.

     8.8  Governing Law.
          -------------
     This Agreement shall be governed by the laws of the State of New York.

     8.9  Force Majeure.
          -------------
     In the event that Pepsi-Cola is unable to deliver the Postmix Products
     and/or Packaged Products at any time during the Term attributable to events
     and circumstances beyond the control of Pepsi-Cola and/or bottlers licensed
     by Pepsi-Cola and the Partnership, Partnership, i.e., civil unrest, labor
     strikes, natural disasters, acts of God, then during such periods of
     interruption, the exclusivity provisions of this Agreement shall be
     suspended until such time as the interruption is resolved, at which time
     the parties shall resume their respective performance requirements under
     this Agreement.

If the foregoing correctly sets forth our understanding, please sign below to
confirm our agreement.

PEPSI-COLA COMPANY                          _____________________________
A Division of PepsiCo, Inc.                 As Franchisee of
                                            RED ROBIN INTERNATIONAL, INC.

By _______________________                  By __________________________

Title:____________________                  Title:_______________________

Date:_____________________                  Date:________________________<PAGE>

                                                                   EXHIBIT 10.28

   ***Confidential treatment has been requested as to certain portions of this
   agreement. Such omitted confidential information has been designated by an
     asterisk and has been filed separately with the Securities and Exchange
 Commission pursuant to Rule 406 under the Securities and Exchange Act of 1933,
  as amended, and the Commission's rules and regulations promulgated under the
Freedom of Information Act, pursuant to a request for confidential treatment.***

                                       A

                               Sysco Corporation

                         Master Distribution Agreement

                                      For

                         Red Robin International, Inc.

                                                                    May 16, 2001

<PAGE>

                               Table of Contents

1.      Appointment of Distributor

2.      Customer Service Provided by SYSCO
        2.1     Account Executive
        2.2     Item List
        2.3     Policies and Procedures

3.      Delivery Service Provided by SYSCO

4.      Information Services Provided by SYSCO
        4.1     Usage Reports
        4.2     Direct Order Entry
        4.3     Supporting Software
        4.4     Third Party Providers

5.      Pricing
        5.1     Definition of Cost
        5.2     Merchandising Services
        5.3     Sell Price
        5.4     Customer Contract Pricing
        5.5     Substitutions
        5.6     Adjustment in Margins for Unanticipated Problems

6.      Supplier Agreements - Administration and Handling
        6.1     Supplier Detail Form
        6.2     Equivalent SYSCO Branded Product
        6.3     Effectiveness of Additional Supplier Agreements
        6.4     Administrative Maintenance of Supplier Agreements
        6.5     Specifically Inventoried Proprietary Product - Effectiveness of
                Pricing Changes

7.      Price Verification

8.      Proprietary and Special Order Products
        8.1     Definition of Special Order Products
        8.2     Definition of Proprietary Products
        8.3     Stocking of Proprietary Products
        8.4     Proprietary Product and Special Order Products Requirements
        8.5     Customer Responsibility for Proprietary Products and Special
                Order Products

<PAGE>

9.      Credit
        9.1     Net Terms
        9.2     Set Off
        9.3     Service Charge; Collection Fees
        9.4     Applications
        9.5     Financial Information
        9.6     Delivery Stoppage

10.     Term

11.     Termination

12.     Arbitration and Waiver of Jury Trial Right
        12.1    Arbitration
        12.2    Waiver of Jury Trial Right

13.     Perishable Agricultural Commodities

14.     Miscellaneous
        14.1    Assignment
        14.2    Entire Agreement
        14.3    Amendments
        14.4    Notices
        14.5    Donations

<PAGE>

                          MASTER DISTRIBUTION AGREEMENT

     Master Distribution Agreement (this "Agreement"), dated May 16, 2001,
between SYSCO CORPORATION for itself and on behalf of those of its operating
subsidiaries and/or divisions listed in Schedule 1 (collectively, "SYSCO") and
Red Robin International, Inc. and each entity that owns or operates any of the
establishments listed as Customer Locations on Schedule 1.

                                   Background
                                   ----------

A.   SYSCO performs regional and national marketing, freight management,
consolidated warehousing, quality assurance and performance-based product
marketing for suppliers of products to the foodservice distribution industry;

B.   SYSCO performs purchasing, marketing, warehousing, quality assurance,
product research and development, transportation and distribution services for
foodservice customers directly and through its operating subsidiaries and
divisions (collectively, "Operating Companies" and individually, "Operating
Company"); and

C.   Customer owns, operates, is a franchiser of, and/or acts as a group
purchasing organization for the establishments listed in Schedule 1 (the
"Customer Locations").

D.   Customer desires to contract with SYSCO as its primary distributor for
foodservice products (i.e., supplying 80% or more of such products) to all of
its participating Customer Locations and SYSCO desires to perform these
services.

     In consideration of the mutual obligations set forth below, the parties
agree as follows:

1.   Appointment of Distributor
     --------------------------

     Customer appoints SYSCO to serve as its primary distributor to the Customer
Locations of foodservice products within the product categories described in
Schedule 2 ("Products"). By appointing SYSCO its "primary distributor" Customer
agrees that each participating Customer Location will purchase not less than 80%
of the dollar volume of such Customer Location's purchase requirements of
Products in each Product category.

     Products will include SYSCO(R) brand, national brand and other products
stocked by SYSCO. SYSCO(R) brand products include all products under trademarks
or tradenames owned by SYSCO as well as products under trademarks available
exclusively to SYSCO(R) in foodservice distribution channels.

                                      -1-

<PAGE>

2.   Customer Service Provided by SYSCO
     ----------------------------------

     2.1  Account Executive - SYSCO will assign an account executive and/or a
          -----------------
customer service representative to service Customer's account. The account
executive and/or customer service representative will maintain contact with
Customer Locations, on a mutually agreed basis, to review service requirements.

     2.2  Item List - SYSCO, with assistance from Customer, will prepare order
          ---------
guides to be used by the Customer when placing orders which will be provided on
Red Robin's fiscal monthly calendar for items priced monthly and on a weekly
basis for items priced weekly. SYSCO will provide order guides in hard copy
format or electronically if the Customer utilizes a SYSCO direct order entry
system, at Customer's option.

     2.3  Policies and Procedures - A policies and procedures guide has been
          -----------------------
provided by SYSCO to all Customer Locations. Resonable notice will be given to
Customer Locations when policies and procedures are changed by SYSCO. Credits,
pickups and other requests for service will be initiated by local Customer
Locations personnel according to the guide.

3.   Delivery Service Provided by SYSCO
     ----------------------------------

     Each Operating Company will establish a delivery schedule for each Customer
Location within its market area taking into consideration Customer needs and
preferences and will use reasonable, good faith efforts to make on-time
deliveries.

4.   Information Services Provided By SYSCO
     --------------------------------------

     4.1  Usage Reports - SYSCO can provide Customer usage data selected from
          -------------
SYSCO's standard report or flat file options. Standard data is made available
either on hard copy or electronically. The electronic options include EDI ANSI
X.12, bulletin board, tape or diskette. Should it become necessary to develop
customized reports in lieu of or in addition to the standard SYSCO reports,
SYSCO will use reasonable efforts to provide such reports. Customer agrees to
pay for any additional costs incurred by SYSCO for the development of any
customized reports.

     4.2  Direct Order Entry - If Customer desires electronic order entry, SYSCO
          ------------------
will provide either Customer Companion software or an Internet order entry
application utilizing a browser. Either option will enable the Customer
Locations to directly place orders electronically with the servicing Operating
Company. Any participating Customer Locations must provide, at their own cost,
compatible hardware, Internet and network connections in order to utilize the
above software or browser application.

                                      -2-

<PAGE>

     4.3  Supporting Software - SYSCO has available supporting software modules
          -------------------
that interface with the eSYSCO Order Entry System. This supporting software
offers menu planning and inventory management system and can be purchased
through SYSCO for a nominal fee.

     4.4  Third Party Providers - Upon the Customer's written request, SYSCO
          ---------------------
will provide to an agent representing a Customer for the purpose of information
analysis, order placement or processing, or supplier rebate application (a
"Third Party Provider") purchasing information that is normally made available
to the Customer, subject to the below listed conditions: The information will
only be made available in one of SYSCO's standard electronic formats or
utilizing EDI ANSI X.12 standards. All information sent by SYSCO to an
authorized Third Party Provider is for the sole use of the Customer. Selling,
utilizing, or disclosing such information to anyone other than the Customer is
prohibited. Prior to providing any such information to any such Third Party
Provider, SYSCO requires a Confidentially Agreement be in place with both the
Customer and the Third Party Provider prior to transmission of data to a third
party. In the event SYSCO incurs additional costs as a result of Third Party
Provider requirements, such costs will be charged to either the Customer or the
Third Party Provider.

5.   Pricing
     -------

     5.1  Definition of Cost - The price to Customer for all Products sold under
          ------------------
this Agreement (the "Sell Price") will be calculated on the basis of Cost.
Except for contract pricing noted in 5.4, "Cost" is defined as the cost of the
Product as shown on the invoice to the delivering Operating Company, plus
applicable freight. The invoice used to determine Cost will be the invoice
issued to the delivering Operating Company by the supplier or by the
Merchandising Services Department of SYSCO Corporation. Cost is not reduced by
cash discounts for prompt payment available to SYSCO or the Operating Companies.

     Applicable freight, in those cases where the invoice cost to the delivering
Operating Company is not a delivered cost, means a reasonable freight charge to
transport a Product from the Supplier (as defined below) to the Operating
Company. Freight charges may include common or contract carrier charges imposed
by the Product Supplier or a carrier, or charges billed by Alfmark, SYSCO's
freight management service. Applicable freight for any Product will not exceed
the rate charged by nationally recognized carriers operating between the same
points, for the same quantity of product, and the same type of freight service.

     5.2  Merchandising Services - SYSCO performs value-added services for
          ----------------------
suppliers of SYSCO(R)brand and other products (a "Supplier") over and above
procurement activities typically provided. These value-added services include
regional and national marketing, freight management, consolidated warehousing,
distribution, quality assurance and performance-based product marketing. SYSCO
may recover the costs of providing

                                      -3-

<PAGE>

these services and may also be compensated for these services and considers this
compensation to be earned income. Receipt of such cost recovery or earned income
does not reduce Cost and does not diminish SYSCO's commitment to provide
competitive prices to its customers.

     5.3  Sell Price
          ----------

     (a)  Calculation of Sell Price - The Sell Price of each Product sold under
          -------------------------
this Agreement will equal the Cost of such Product divided by 100% minus the
percentage margin on sell specified in Schedule 2 for such Product category,
less promotional allowances reflected on invoices to the delivering Operating
Company which will be passed along as a temporary reduction in the Sell Price
for the term of the promotion.

     For Example, a Product with a Cost of $25.00 per case, a margin on sell of
10% and a promotional allowance on the face of the invoice of $.50 per case will
have a Sell Price calculated as follows:

     Calculate base price from margin      $25.00    =    $25.00     =   $27.78
                                         ----------     -----------
                                         (100%-10%)         90%
     Less promotional allowance
     shown the invoice                                                     (.50)
                                                                         ------
                                         Sell Price                      $27.28
                                                                         ======

     (b)  Duration of Sell Price - Costs for all Products are recalculated with
the following frequencies:

          1)   Time of sale pricing - price sensitive products with volatile
fluctuations in pricing (i.e. produce and fresh seafood);

          2)   Weekly pricing - commodity products which reflect declines and
advances in Cost on a regular basis, as determined by SYSCO (i.e. most protein
products) - will be in effect for seven consecutive days;

          3)   Monthly pricing - fairly stable pricing for extended periods
(i.e. most canned products) - will be in effect to coincide with Red Robin's
fiscal monthly calendar.

Variances can occur to the Customer's invoiced price due to starting and ending
dates of Supplier Agreements, as detailed in Section 6 hereof (and the timing of
when "Cost" is determined).

                                      -4-

<PAGE>

     (c)  Time of Sell Price Calculation - The following schedule will be used
          ------------------------------
to determine when the sell price is calculated:

          1)   Time of Sale Pricing - day of invoicing;

          2)   Weekly Pricing - Thursday of the prior week;

          3)   Monthly Pricing - Seven days prior to the start of Red Robin's
               fiscal monthly calendar.

     (d)  Effective Date of Sell Price - Weekly pricing will be for 7
          ----------------------------
consecutive days to be determined by the Operating Company. Monthly pricing will
coincide with Red Robin's monthly fiscal calendar.

     5.4  Customer Contract Pricing - In the event the Customer negotiates
          -------------------------
contract pricing directly with a Supplier, such contract cost with such Supplier
will be used to calculate the Customer's Sell Price, regardless of SYSCO's Cost.

     5.5  Substitutions - Should a substitution be necessary, the delivering
          -------------
Operating Company will ship a comparable product at a Sell Price calculated
using the same methodology and margin percentage as on the original Product
ordered.

     5.6  Adjustment in Margins for Unanticipated Problems - If the operating
          ------------------------------------------------
costs of SYSCO or any particular Operating Company are increased as a direct
result of a significant regional or national economic problem, including but not
limited to fuel cost increases and power shortages, SYSCO may, with prior
consent of the Customer, add a surcharge to the Customer's invoice to compensate
for such increased costs.

6.   Supplier Agreements - Administration and Handling
     -------------------------------------------------

     6.1  Customer will provide SYSCO with written evidence of the existence of
any contractual agreements it has with any Supplier for the purchase of Products
("Supplier Agreements"), utilizing the SYSCO Supplier Detail Form (Schedule 3).
Supplier Agreements include agreements for which the Supplier and Customer have
agreed on off-invoice allowances for Customer ("Supplier Off-Invoice
Allowances") or the guaranteed cost Supplier will charge distributor for Product
to be resold to Customer ("Supplier Guaranteed Distributor Cost"). SYSCO will
use the Supplier Guaranteed Distributor Cost (of which it has been notified
appropriately) as the Cost of such Product when calculating its Sell Price,
notwithstanding that the Cost of such Product to SYSCO otherwise varies. SYSCO
will provide for a Supplier Off-Invoice Allowance for a Product by deducting
such allowance value after the Sell Price of such Product is calculated in
accordance with Section 5.3.

                                      -5-

<PAGE>

     6.2  Equivalent SYSCO Branded Product. In the event Supplier is an
          --------------------------------
authorized supplier of SYSCO branded Product which is the equivalent of any
Products covered by a Supplier Agreement (the "Equivalent SYSCO Product"), SYSCO
may provide such Equivalent SYSCO Product to Customer under the terms of such
Supplier Agreement provided that (i) Customer has approved SYSCO branded Product
for purchase, (ii) Supplier agrees that such Supplier Agreement terms can be
applied to the equivalent SYSCO branded Product; and (iii) such equivalent SYSCO
branded Product is stocked by an Operating Company servicing any Customer
Location.

     6.3  Effectiveness of Additional Supplier Agreements. For any Supplier
          -----------------------------------------------
Agreements which are either (i) not listed on Schedule 3 or (ii) the terms of
which change from what is listed on Schedule 3 ("New Supplier Agreements"),
SYSCO must be notified in writing 21 days prior to the Customer's fiscal monthly
calendar in which it should become effective. Furthermore, in the event any
documentation regarding the specifics of any New Supplier Agreement is
incomplete, while SYSCO will make every reasonable effort to secure such
necessary documentation to implement the terms and provisions of such New
Supplier Agreement, if such additional documentation is not received 21 days
prior to the Customer's fiscal monthly calendar, the effectiveness of the
pricing and allowance terms thereof shall be delayed until the following fiscal
calendar month, following receipt of such documentation.

     6.4  Administrative Maintenance of Supplier Agreements. Customer agrees
          -------------------------------------------------
that SYSCO is not responsible for inaccuracies, errors or omissions made by
Supplier in connection with the billing of the pricing and allowances under the
Supplier Agreements and that Customer's sole and exclusive remedy for any such
inaccuracies, errors or omissions shall be directly with Supplier. (For example:
If the terms and provisions of a New Supplier Agreement are received by January
20th with direction to be effective as of February 1st, the effective dates of
such pricing allowances will be March 1st and Customer will look only to
Supplier to resolve any issues with respect to such pricing and/or allowances
not being effective as of February 1st.)

     6.5  Specifically Inventoried Proprietary Product - Effectiveness of
          --------------------------------------------
Pricing Changes. For Proprietary Products which are specifically inventoried for
Customer pursuant to the terms of a Supplier Agreement, Customer agrees that any
changes in the Supplier Guaranteed Distributor Cost will not be effective until
such time as SYSCO revalues its inventory of such Proprietary Product in
accordance with its normal and customary inventory valuation procedures, unless
Supplier allows SYSCO to bill back Supplier for such pricing and allowance
modifications on its existing inventory at the time of such changes, in which
event the pricing to Customer shall change upon the effective date of the New
Supplier Agreement.

                                      -6-

<PAGE>

7.   Price Verification
     ------------------

     Customer will be allowed one (1) annual price verification at each
delivering Operating Company for purchases made under this Agreement. The price
verification will consist of reviewing computer reports documenting SYSCO's
calculation of the Customer's invoice price and verification of the
participating SYSCO Operating Company's delivered Cost. If requested, applicable
Supplier invoices and accompanying freight invoices will also be made available.
Price verification adjustments, if applicable, will be made utilizing the net of
undercharges and overcharges to the Customer. The price verification process is
subject to the following:

     a.   Customer must request a price verification in writing at least twenty
          (20) business days prior to the suggested date of the price
          verification. This request must identify the thirty (30) items to be
          price verified and the period covered;

     b.   The date and time of price verification must be to the mutual
          agreement of both parties;

     c.   The price verification will be made at the delivering Operating
          Company's location;

     d.   Support for the price verification may not be removed from the
          delivering Operating Company location;

     e.   The period for which pricing is to be verified will not begin more
          than twelve (12) months prior to the date of the price verification,
          and will cover only one pricing period.

     Due to the extensive time and complexity associated with price
verification, SYSCO will not permit computer generated price matching or
electronic audits by or on behalf of Customers or any Third Party Provider to be
used in lieu of the above price verification procedure.

8.   Proprietary and Special Order Products
     --------------------------------------

     8.1  Definition of Special Order Products - Special Order Products are
          ------------------------------------
defined as products not inventoried by the SYSCO Operating Company whereby the
Customer requests the Operating Company to purchase said products on the
Customer's behalf.

     8.2  Definition of Proprietary Products - Proprietary Products are
          ----------------------------------
defined as products bearing the customers name or logo or products with a unique
formulation which are restricted for sale to one Customer, or national branded
products that would otherwise not be inventoried except for the requirements of
the Customer. Products that are produced for SYSCO under the Sysco Brand will be
considered Proprietary Products when the Customer designates the product must be
procured from specific suppliers.

                                      -7-

<PAGE>

Due to the highly perishable nature of fresh produce, SYSCO will not honor
proprietary status on any fresh produce item.

     8.3  Stocking of Proprietary Products - SYSCO Operating companies will
          --------------------------------
stock product deemed necessary by the Customer to conduct their business
successfully. However, Customer completely understands that sufficient movement
is required to store proprietary items. Customer also agrees to take
responsibility for depleting excessive proprietary inventory as well as any
proprietary items with no movement in a timely basis.

SYSCO Operating companies will stock 21 days of inventory on all proprietary
items.

     8.4  Proprietary Product and Special Order Products Requirements -
          -----------------------------------------------------------
Proprietary Products and Special Order Products for the Customer must meet the
following requirements:

          a) Suppliers of Proprietary Products and Special Order Products must
provide SYSCO with SYSCO's required indemnity agreement and insurance coverage;

          b) Proprietary Products and Special Order Products must have a valid
UPC number assigned and a scanable UPC bar code on each sellable unit;

          c) SYSCO utilizes several third party warehouses throughout the nation
for the purpose of efficiently redistributing products ("Redistribution
Warehouses"). Any Products placed into the Redistribution Warehouses must be
inventoried on a consigned basis by either the Supplier or the Customer.

     8.5  Customer Responsibility for Proprietary Products and Special Order
          ------------------------------------------------------------------
Products
--------
          a) Hold Harmless - In the event any supplier of Proprietary Products
or Special Order Products does not provide SYSCO's required indemnity, Customer
will defend, indemnify and hold harmless SYSCO and its employees, officers and
directors from all actions, claims and proceedings, and any judgments, damages
and expenses resulting therefrom, brought by any person or entity for injury,
illness and/or death or for damage to property in either case arising out of the
delivery, sale, resale, use or consumption of any such Proprietary Product or
Special Order Product, except to the extent such claims are caused by the
negligence of SYSCO, its agents or employees.

                                      -8-

<PAGE>

          b) Minimal Movement Requirements - In the event SYSCO, at the request
             -----------------------------
of the Customer, inventories Proprietary Products or Special Order Products
(including without limitation, Products featured by Customer for a limited time
period) at either any Operating Companies or at any Redistribution Warehouse,
and there is no Product movement within 30 days of delivery to such location,
Customer agrees to cause such Products to be repurchased and if desired, take
possession of all such Product within 14 days following written notification
from SYSCO. Products repurchased will be at SYSCO's Cost plus a reasonable
transfer and warehouse handling charge not to exceed 10% of the Products Cost.

          c) Food Safety and Ground Beef - Food safety is of paramount
             ---------------------------
importance to SYSCO, Customer and the ultimate consumer. To that end, SYSCO has
developed a set of stringent standards for the production and packaging of
ground beef (the "SYSCO Ground Beef Safety Standards"). In order to adequately
protect SYSCO and Customer from potential food safety issues relating to the
production and packaging of ground beef and the ultimate consumer, SYSCO shall
not be obligated to utilize any Supplier of ground beef which does not meet the
SYSCO Ground Beef Safety Standards, a copy of which has been previously provided
to Customer, whether or not the ground beef supplied by such supplier has been
designated by Customer as a Proprietary Product or Special Order Product.

          d) Termination - In the event of termination or expiration of this
             -----------
Agreement, Customer will purchase, or cause a third party to purchase, all
remaining Proprietary Products and Special Order Products in SYSCO's inventory
at SYSCO's Cost plus a reasonable transfer and warehouse handling charge not to
exceed 10% of the Cost of such Proprietary Products or Special Order Products.
In such an event, Customer will purchase or cause to be purchased all perishable
Proprietary Products and Special Order Products within seven (7) days of the
termination of this Agreement and all frozen and dry Proprietary Products and
Special Order Products within fifteen (15) days of the termination of this
Agreement, and Customer hereby guarantees payment for such Product purchased by
a designated third party.

9.   Credit
     ------

     9.1  Net Terms - Payment is due within 28 days from the date of the
          ---------
invoice.

     SYSCO reserves the right to modify payment terms for Customer or any
company or entity which purchases Products under this Agreement as a franchisee
or member of a group purchasing organization, in SYSCO's sole judgement, if any
such entity's financial condition materially deteriorates or SYSCO becomes aware
of circumstances that may materially and adversely impact such entity's ability
to meet its financial obligations when due.

                                      -9-

<PAGE>

     SYSCO will give Customer a (30) day written notice of a material default
with thirty (30) days to cure within such thirty (30) day period.

     Franchisee Customers which are franchisees or members of group purchasing
organizations will normally be offered the standard credit terms offered
hereunder. However, at the sole discretion of the servicing SYSCO Operating
Company and based on the credit worthiness of the individual Customer Location
(or the entity which owns or operates such Customer Location), terms other than
that stated in this Agreement may be applied.

     9.2  Set Off - SYSCO's rights of set off and recoupment are recognized by
          -------
Customer and preserved in all respects.

     9.3  Service Charge; Collection Fees - If invoices are not paid when due, a
          -------------------------------
service charge will be assessed to Customer, up to the maximum amount permitted
by law. Unpaid invoice balances and service charges due to SYSCO will be
deducted from any credits due to Customer. Customer shall pay all costs and
expenses (including reasonable attorney's fees) SYSCO incurs in enforcing its
rights under this Agreement including, without limitation, its right to payment
for Product sold to Customer.

     9.4  Applications - Customer (and each Customer franchisee and member of
          ------------
Customer's group purchasing organization) will complete, execute and deliver a
new account form to SYSCO before this Agreement becomes binding upon SYSCO.

     9.5  Financial Information - The continuing creditworthiness of Customer is
          ---------------------
of central importance to SYSCO. In order to enable SYSCO to monitor Customer's
financial condition and if requested by SYSCO, Customer will supply quarterly
and annual financial statements to SYSCO consisting of an income statement,
balance sheet and statement of cash flow. SYSCO may request such further
financial information from Customer from time to time, sufficient, in SYSCO's
judgment, to enable SYSCO to accurately assess Customer's financial condition.

     9.6  Delivery Stoppage - In the event Customer, or any company or entity
          -----------------
which purchases Products under this Agreement as a Customer franchisee or a
member of Customer's group purchasing organization, fails to make payment when
due, SYSCO or any participating Operating Company to which such payment is due
may immediately cease shipment of any Products to Customer or other
participating entity until the outstanding receivable balance is fully within
terms.

10.  Term
     ----

     The term of this Agreement will begin on May 21, 2001, and will end at 5:00
p.m. Houston time on June 30, 2004.

                                      -10-

<PAGE>

11.  Termination
     -----------

     This Agreement may be terminated prior to its ending date for the
following:

     (a)  By either party for failure of the other party to comply with any
material provision of this Agreement within sixty (60) days of such party's
receipt of written notice describing said failure;

     (b)  By SYSCO immediately upon written notice to Customer if Customer's
financial position deteriorates materially, determined by SYSCO in its sole
judgment; or SYSCO becomes aware of any circumstances that, in SYSCO's sole
judgement, materially impacts Customer's ability to meet its financial
obligation when due;

     (c)  By SYSCO with respect to any Customer franchisee or a member of
Customer's group purchasing organization, immediately upon written notice to
such entity if its financial position deteriorates materially, determined by
SYSCO in its sole judgment; or SYSCO becomes aware of any circumstances that, in
SYSCO's sole judgment, materially impacts such entity's ability to meet its
financial obligations when due;

     (d)  By SYSCO, if Customer (or any Customer franchisee or member of
Customer's group purchasing organization) fails to meet its stated operational
representations set out in Schedule 5. The margin schedule submitted is based on
the Customer's operational representations concerning its service needs as
stated in Schedule 2 including, but not limited to its anticipated purchase
volumes, drop sizes, Product mix, location of Customer Locations, number of
deliveries, information services/technology requirements, and number of
Proprietary Products and Special Order Products as well as Customer's compliance
with the payment and other obligations specified in this Agreement. If SYSCO
determines at any time or times after ninety (90) days from the date of this
Agreement that Customer (or any Customer franchisee or member of Customer's
group purchasing organization) requires service which varies materially from the
levels contemplated in Customer's representations made to SYSCO in negotiating
this Agreement, SYSCO reserves the right to request an increase on the margin
specified. SYSCO shall give written notice to Customer (or any Customer
franchisee or member of Customer's group purchasing organization) of the
proposed increase in the margin. If the parties are unable to agree on such an
increase within 30 days after the date of the notice of such increase and
Customer's (or any Customer franchisee or member of Customer's group purchasing
organization) service requirements and/or contract compliance continues to vary
from that contemplated or required by this Agreement, SYSCO may terminate this
Agreement on thirty (30) days written notice to Customer (or any Customer
franchisee or member of Customer's group purchasing organization).

                                      -11-

<PAGE>

     Upon termination, Customer (or any Customer franchisee or member of
Customer's group purchasing organization) agrees to fully comply with all of its
obligations under this Agreement, including, without limitation to pay all
invoices at the earlier of 1) the time they are due or 2) two weeks from the
date of the last shipment to a Customer Location.

12.  Arbitration and Waiver of Jury Trial Right
     ------------------------------------------

     12.1 Arbitration - All actions, disputes, claims or controversy of any kind
          -----------
now existing or hereafter arising between the parties to this Agreement,
including, but not limited to any action, dispute, claim or controversy arising
out of this Agreement or the delivery by SYSCO of any Products to Customer (a
"Dispute") shall be resolved by binding arbitration in Houston, in accordance
with the Commercial Arbitration Rules of the American Arbitration Association
and, to the maximum extent applicable, the Federal Arbitration Act. Arbitrations
shall be conducted before one arbitrator mutually agreeable to Customer and
SYSCO. If the parties cannot agree on an arbitrator within thirty (30) days
after the request for an arbitration, then each party will select an arbitrator
and the two arbitrators will select upon a third. Judgment of any award rendered
by an arbitrator may be entered in any court having jurisdiction. All fees of
the arbitrator and other costs and expenses of the arbitration shall be paid by
SYSCO and Customer equally unless otherwise awarded by the arbitrator; provided,
however, that the non-prevailing party in an arbitration shall pay all
reasonable attorneys' fees and expenses incurred by the prevailing party in
connection with the Dispute and the arbitration.

     12.2 Waiver of Jury Trial Right - Customer affirmatively waives its right
          --------------------------
to jury trial with respect to any disputes, claims or controversies of any kind
whatsoever; Customer having submitted to arbitration any of such disputes,
claims or controversies as set out above.

13.  Perishable Agricultural Commodities
     -----------------------------------

     This Agreement may cover sales of "perishable agricultural commodities" as
those terms are defined by federal law. Generally, all fresh and frozen fruits
and vegetables which have not been processed beyond cutting, combining, and/or
steam blanching are considered perishable agricultural commodities as are oil
blanched french fried potato products. All perishable agricultural commodities
sold under this Agreement are sold subject to the statutory trust authorized by
Section 5(c) of the Perishable Agricultural Commodities Act, 1930 (7 U.S.C.
499e(c)). The seller of these commodities retains a trust claim over these
commodities and all inventories of food or other products derived from these
commodities until full payment is received.

                                      -12-

<PAGE>

14.  Miscellaneous
     -------------

     14.1 Assignment - Neither party may assign this Agreement without the prior
          ----------
written consent of the other party provided that SYSCO may utilize its Operating
Companies to perform as indicated in this Agreement. Subject to this limitation,
this Agreement shall be binding upon and inure to the benefit of the successors
and assigns of each of the parties.

     14.2 Entire Agreement - The parties expressly acknowledge that this
          ----------------
Agreement contains the entire agreement of the parties with respect to the
relationship specified in this Agreement and supersedes any prior arrangements
or understandings between the parties with respect to such relationship.

     14.3 Amendments - This Agreement may only be amended by a written document
          ----------
signed by each of the parties.

     14.4 Notices - Any written notice called for in this Agreement may be given
          -------
by personal delivery, certified mail, overnight delivery service or confirmed
facsimile transmission. Notices given by personal delivery will be effective on
delivery; by overnight service on the next business day; by first class mail
five business days after mailing; and by facsimile when an answer back
confirming receipt by the recipient's facsimile machine is received. The address
of each party is set forth below.

     14.5 Donations - Due to the extreme competitiveness of this contract, SYSCO
          ---------
will be unable to offer donations in either free goods, cash, or use of SYSCO
owned equipment.

                                      -13-

<PAGE>

     Executed as of the date set forth at the beginning of this Agreement.

                                            SYSCO CORPORATION

20701 East Currier Road                     By: /s/ DEBBIE MARTIN
Walnut, CA  91789                              ---------------------------------
Attention: Debbie Martin,                       Debbie Martin
Regional V.P., Multi-Unit Sales                 Regional Vice President,
Telephone:      (909) 598-7883                  Multi Unit Sales
Facsimile:      (909) 594-0565
                                            Date:_______________________________
Copy to:
-------

SYSCO Corporation
1390 Enclave Parkway
Houston, Texas 77077-2099
Attention:      Operations Review
Telephone:      (281) 584-1390
Facsimile:      (281) 584-1744

                                            RED ROBIN INTERNATIONAL, INC.

5575 DTC Parkway, #110                      By: /s/ RAY MASTERS
Englewood, CO  80111                           ---------------------------------
Attention:      Ray Masters                     Ray Masters
Telephone:      (303) 846-6029                  Vice President, Purchasing
Facsimile:      (303) 846-6044
                                            Date:  5-22-01
                                                 -------------------------------

                                      -14-

<PAGE>

                                   SCHEDULE 2
                                       TO
                          MASTER DISTRIBUTION AGREEMENT

                                CUSTOMER MARGINS
     Product Category                                     Margin

1.   Healthcare                                           ***

2.   Dairy Products                                       ***
          Exception:  Cheddar Cheese                      ***
                      All other Cheeses                   ***

3.   Meats                                                ***
          Exception: Hamburger                            ***

4.   Seafood (fresh & frozen)

5.   Poultry (CVP & frozen)                               ***

6.   Frozen/Refrigerated Foods                            ***
          Exception: Fries 30# Case                       ***
                           36# Case                       ***

7.   Canned & Dry                                         ***
          Exception: Coke Products                        ***
                     Dr. Pepper/7-UP                      ***

8.   Paper & Disposables                                  ***

9.   Chemical/Janitorial (supplies & cleaning)            ***
          Exception: Ecolab                               ***

10.  Supplies & Equipment                                 ***

11.  Dispenser Beverage                                   ***

12.  Produce                                              ***

     The SYSCO Corporation owns several specialty meat operations and manages a
line of premium meat products that does not fall within the scope of this
agreement. Premium meat products will be sold at prevailing market prices.

     The SYSCO Corporation owns several specialty produce operations. Purchase
of products from said produce operations is not provided for in this agreement.

<PAGE>

                     List of Omitted Exhibits and Schedules

The following exhibits and schedules to the Master Distribution Agreement
between Red Robin International, Inc. and Sysco Corporation have been omitted
and shall be furnished supplementally to the Commission upon request:

Schedule 1   -   Operating Companies and Participating Customer Locations
Schedule 3   -   SYSCO Supplier Detail Form
Schedule 4   -   Customer Listing of Proprietary Products
Schedule 5   -   Customer Representations
Schedule 6   -   Customer Incentive Programs

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