Red Lobster may be headed toward bankruptcy, but its business problems go far beyond all-you-can-eat shrimp.
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The Lede
With the chain on the verge of bankruptcy, it has become abundantly clear that Red Lobster letting customers eat all the shrimp their hearts desire was not a great business idea. It's also not the reason the restaurant is in a deep financial mess.
Key Details
- While Red Lobster increased traffic somewhat, the company blamed Endless Shrimp for its $11 million losses in the third quarter of 2023.
- The brand has been plagued by various problems — waning customer interest, constant leadership turnover, and, as has become a common tale, private equity's meddling in the business.
- "What's truly happened with Red Lobster is that the consumer base has changed and Red Lobster hasn't," said Darren Tristano, the CEO and founder of Foodservice Results.
