This New Year’s Eve will be the final toast for 1776, but the iconic steakhouse in the Midway Shopping Center will be back in 2026 with a new owner.

Owner Tom Holmes has sold 1776 to Regan Derrickson, the owner of Nalu in Dewey Beach and Rehoboth Beach, and Summer House in Rehoboth Beach.

Holmes, who has owned the restaurant since 2007, said he didn’t plan to step away, but he got a great offer.

“It’s like I’m on a farewell tour,” he said. “Every table I go to, people want me to sit down and talk.”

Holmes said the original 1776 opened in 1998, with a colonial theme. The servers wore colonial garb, and the menu items were priced at $17.76.

He said Kenny Butler then purchased the business and turned it into a steakhouse. But, Holmes said, the restaurant’s reputation became tainted. Holmes said he was able to turn 1776 around to what it is today. He said the brand is what Derrickson wanted most.

“I think we’ve built the brand into the best restaurant brand in the entire state,” Holmes said.

Holmes and 1776 were honored with the Delaware Restaurant Association’s prestigious Cornerstone Award in October.

He said the restaurant will close for renovations Wednesday, Dec. 31, and reopen in mid-February. He said Derrickson plans to keep the same menu and honor 1776 gift cards for two years.

Another key change will be that Derrickson plans to be open seven days a week, instead of 1776’s current Tuesday through Saturday hours.

“We turn away 1,200 customers a week,” Holmes said. “We don’t have any Saturday reservations available for the rest of the year.”

Which is why Holmes said he is not planning a big farewell party on New Year’s Eve.

“We’re already full,” he said.

Derrickson told the Cape Gazette he cannot comment until the sale is final, which is expected in early January.

Holmes said he would think about opening another restaurant somewhere else, not at the Delaware beaches.

He said he will miss the customers the most.

“It’s bittersweet, probably more bitter than sweet,” he said. “This is the kind of place where you know everybody when you walk through the restaurant. I’ve been to so many weddings and funerals; the community is like family.”