The butter is getting cold at Red Lobster. Faced with serious financial problems, the chain is shuttering locations across America. Will they upend the boat or get a much-needed life preserver?
They were once the King Neptune of the casual dining scene, slinging affordable lobster dinners, those amazing Cheddar Bay biscuits, and bottomless shrimp snacks, but those days are over as Red Lobster closes the doors on restaurants across 20 states. The culinary tides have shifted for this former kraken of quick-serve seafood. Red Lobster's business is taking on water.
According to ABC News, mismanagement and skyrocketing costs have caused closures across a wide net of locations, including in the following towns...
- Alabama: Auburn, Decatur
- California: Fremont, Redding, Rohnert Park, Sacramento, San Diego, Torrance
- Colorado: Denver, Lakewood, Lone Tree, Wheat Ridge
- Florida: Altamonte Springs, Gainesville, Hialeah, Largo, Orlando
- Georgia: Athens, Roswell, Dublin
- Idaho: Lewiston
- Illinois: Bloomingdale, Danville
- Indiana: Indianapolis, Elkhart
- Iowa: Council Bluffs, Waterloo
- Maryland: Gaithersburg, Columbia, Silver Spring, Laurel
- Michigan: Fort, Gradiot
- Mississippi: D'lberville
- New York: Amherst, Kingston, Rochester
- New Jersey: Ledgewood, North Dakota, Grand Forks
- Oklahoma: Lawton, South Carolina, Myrtle Beach
- Texas: Lake Jackson, Long View, San Antonio
- Virginia: Colonial Heights, Williamsburg, Newport News
- Washington: Silverdale
- Wisconsin: Wauwatosa, La Crosse
What's bringing about this unfortunate situation? Red Lobster's overseas owners took a $530 million bath on their investment after their risky all-you-can-eat shrimp promotion strained their profit margins in 2022. It seems no one thought that an endless shrimp promo might break the bank. They obviously didn't factor in Americans' love for fast food buffets in the post-pandemic world. Corporate chaos after the offer ensued, with four CEOs since 2020 struggling to right the sinking ship. Bankruptcy sirens are growing louder, with restructuring experts being brought in to hopefully claw their way back to new shores. As a new CEO prepares to bail them out, they'll need to chart a course back to Red Lobster's roots of affordable seafood before they scuttle the craft. Or else they'll be a shell of their former selves.
For die-hard lobster lovers mourning these closures, there's hope on the horizon. Bankruptcy is not always the end of the voyage for a company as big as this, but for now, the writing is on the seawall. Red Lobster needs to course correct fast, or else more locations could be "sleeping with the fishes." That all said, I challenge you dear reader to find all the seafood and nautical puns in this article. This author should be PUNished by walking the plank!