Red Lobster’s Plan to Save Itself Ended Up Destroying It
I’ve never been to Red Lobster, but they’re everywhere, at least for now. It’s the nation’s largest seafood chain, and it got cooked over various factors, but one consumer deal appears to have been the straw that broke the camel’s back: the “all you can eat” shrimp deal.
The corporate brass thought this pitch could be the draw to turn around the chain. Instead, it cost them millions, leading to yesterday’s news that Chapter 11 bankruptcy is imminent and will be filed before Memorial Day. Hundreds of millions of dollars in debt are set to be restructured, with dozens of locations slated for closure (via WSJ):
Red Lobster is literally going bankrupt because people took “all you can eat shrimp” too literally pic.twitter.com/KYGbZP32v3
— Saagar Enjeti (@esaagar) May 14, 2024
🚨#BREAKING: Red Lobster, the largest U.S. seafood restaurant chain known for its seafood and famous cheesy biscuits are getting ready to file for chapter 11 bankruptcy as early as next week after suddenly closing dozens of restaurants. pic.twitter.com/vgl260108j
— R A W S A L E R T S (@rawsalerts) May 15, 2024
