MAKING MOVES ‘Love this’ – Fans rush to Red Lobster after CEO announced huge menu shakeup in a bid to claw back from bankruptcy
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.
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.”
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.
Restaurant chain with 475 outlets set to close dozens of locations across the US – as CEO issues ominous warning
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.”
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.
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.”
