Red Lobster's Endless Shrimp Campaign Leads to Bankruptcy Chaos
- The $20 endless shrimp deal became a permanent menu item in 2023, leading to operational chaos.
- The partnership with Thai Union Group, which gained majority control in 2020, contributed to the chain's decline due to their lack of restaurant experience.
- The new CEO, Damola Adamolekun, acknowledged the challenges posed by the promotion but did not rule out its potential return.
In 2023, Red Lobster, a popular seafood chain in the United States, faced significant challenges leading to its Chapter 11 bankruptcy filing. The new CEO, Damola Adamolekun, attributed the financial troubles primarily to the introduction of a $20 endless shrimp deal, which had been a limited-time offer since 2004 but became a permanent menu item this year. This promotion overwhelmed the restaurant's kitchen and staff, causing operational chaos as customers took advantage of the deal, leading to substantial losses for the company. Adamolekun noted that the partnership with Thai Union Group, which gained majority control in 2020, contributed to the decline of Red Lobster, as they lacked experience in restaurant operations. The CEO expressed concerns about the sustainability of such a costly promotion, highlighting the strain it placed on resources and staff. Despite the challenges, Adamolekun did not dismiss the idea of potentially reintroducing the endless shrimp offer in the future, indicating a willingness to adapt and learn from past mistakes.