RED Lobster customers are hopeful about the brand’s new vision for the years to come.
Several changes are being made at the restaurant chain in 2025 under the guidance of CEO Damola Adamolekun.
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Adamolekun, who formerly helmed P.F. Chang’s, took over as CEO in September after being appointed to head RL Investor Holdings.
RL Investor Holdings acquired Red Lobster and brought it out of bankruptcy with over $60 million in new funding to support a long-term business plan.
It became an independent, privately-held entity with 545 restaurants in 44 states and four Canadian provinces.
At the time, Adamolekun promised a “new chapter” for Red Lobster as a “stronger, more resilient company.”
Read More on Bankruptcies
That new chapter is underway, with some menu shakeups and service changes that the CEO said will provide the optimal dining experience while speaking on The Breakfast Club radio show in New York City last month.
IMPROVEMENTS UNDERWAY
Fresh menu options featuring lobster and crab combinations, along with updates to the customer service at locations, are coming.
“We’re doing some new things on the menu using lobster and crab mostly,” the CEO noted.
“The differentiator for us is product, and I want it to be service too.”
“If we win on those two it’s like okay, it’s not just a chain restaurant because it’s got something that you can’t get anywhere else,” he emphasized.
Adamolekun continued that it would take a combination of everything to bring Red Lobster back to its former glory.
That includes relatively affordable pricing and design upgrades.
“If you want lobster and you want it for $20, we’ve got the lobster roll for that price in certain markets,” the CEO added.
“At the same time, value is what you get for the price.”
“If the hospitality is way better, the food is more interesting, the drinks are fun, and you pay the same price for all of that; people are going to perceive it as value.”
Timeline leading to Red Lobster’s financial woes
Red Lobster has been a staple in the United States ever since its launch in 1968. But the business has recently been hit with financial troubles and it is now reportedly considering filing for bankruptcy.
1968: Bill Darden opened the first Red Lobster as a family-owned restaurant in Lakeland, Florida.
1970: Red Lobster caught the attention of General Mills and became backed by their resources. Stores start to rapidly open across the nation
1974: Popcorn shrimp debuts
1983: Red Lobster’s first Canadian restaurant opens
1984: Chain hosts its first-ever Lobster Fest
1992: Famous Cheddar Bay Biscuits are unveiled for the first time
1995: General Mills creates a spin-off of its restaurant division, known as Darden Restaurants, Inc.
2003: The yearly tradition of Endless Shrimp starts
2006: “Today’s Fresh Fish” menu makes its debut, bringing fresh, regional seafood to Red Lobsters everywhere
2010: Red Lobsters everywhere see an interior makeover inspired by the historic fishing village of Bar Harbor, Maine.
2014: Darden Restaurants, Inc. sells Red Lobster to Golden Golden Gate Capital for $1.2 billion.
2016: Thai Union Group pays $575 million for a 25% stake in the chain.
2020: Thai Union Group purchases a 49% majority stake in the chain from Golden Golden Gate Capital for an undisclosed amount of money and Red Lobster reports record-breaking profits, pulling in $6.5 billion for the year.
2023: Endless Shrimp becomes a permanent part of the menu
2024: Red Lobster announces a $22 million loss for 2023, majority shareholder Thai Union Group announces it is looking to sell its shares. Red Lobster filed for Chapter 11 Bankruptcy in May.
CUSTOMER CONFIDENCE
These comments from the CEO have been music to the ears of longtime Red Lobster fans.
“Love this,” someone wrote in the comments section for a YouTube clip of The Breakfast Club conversation.
“Who is planning on going to Red Lobster because of this interview? I AM,” another said.
“I love red lobster. And I’m gonna support even more now that this young man is CEO,” a third added.
While the future appears bright under Adamolekun’s leadership, it wasn’t looking great for Red Lobster ahead of its bankruptcy filing in May.
FINANCIAL WOES
It had faced several years of financial struggle as a result of underperforming locations, rising food and labor costs, and an uptick in operating expenses.
In 2023, it had already cut 50 restaurants from its portfolio and recorded a loss of about $76 million.
Over another 100 shuttered during the bankruptcy proceedings.
Its Ultimate Endless Shrimp promotion also put the nail in the coffin.
The deal allowed customers to get unlimited plates of the dish for $20, and Red Lobster underestimated the demand for it.
What was initially profitable turned detrimental and led to the Chapter 11 filing not long after.
Other restaurants have also went bankrupt recently.
TGI Fridays went under in November after closing about 100 restaurants but shared a “long-term” restructuring plan.
On the Border Mexican Grill & Cantina also filed earlier this month, citing “financial and operational challenges.”
