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Yahoo
5 days ago
- Business
- Yahoo
Red Lobster's 36-year-old CEO isn't repeating the chain's $11 million endless shrimp disaster. But he is reading all of your social media comments
Red Lobster, the iconic seafood chain, is charting a new course under the leadership of CEO Damola Adamolekun after making its way out of bankruptcy. In an interview with Good Morning America on Thursday, the 36-year-old chief executive addressed two questions lingering on the minds of loyal guests and industry watchers alike: Will the beloved Endless Shrimp deal return, and how will looming U.S. tariffs on imported seafood impact diners? His answers signal a reset for the troubled restaurant brand, focused on financial stability, customer experience, and menu innovation. Endless shrimp promotion: officially retired For years, the Ultimate Endless Shrimp promotion was a staple at Red Lobster, drawing crowds with the promise of limitless seafood at a set price. But as the company navigated severe financial headwinds, it became clear the beloved deal was more curse than blessing. Adamolekun stated unequivocally, 'We don't have any plans to bring it back,' all but closing the door on an offer that, while popular, ultimately helped sink Red Lobster's bottom line. The all-you-can-eat shrimp program, initially launched as a limited-time offer, was made a permanent fixture in recent years. Far from boosting profits, the promotion instead triggered multimillion-dollar losses due to customers out-eating the chain's margins. Bankruptcy filings revealed the deal alone was responsible for a loss of $11 million, accelerating Red Lobster's financial unraveling in 2023 and 2024. 'We listen intently to customer comments and try to react really quickly to deliver people what they want,' Adamolekun explained. 'But you also have to make sure you're running a profitable business.' Red Lobster has shifted its strategy to focus on value in more sustainable forms: introducing appetizer deals, weekday happy hours, and a three-course 'shrimp sensation' menu offered at select locations. While Adamolekun hasn't completely ruled out creative promotions in the distant future, diners hoping for the Endless Shrimp's return shouldn't hold their breath. Red Lobster's new menu items Adamolekun has prioritized innovation and agility, though, including extensive outreach to customers via social media, and a notable responsiveness from the chain to their feedback. Since emerging from bankruptcy, the company has overhauled its menu—streamlining offerings by 20% while adding new items like Lobster Pappardelle Pasta, Bacon-Wrapped Sea Scallops, and revitalizing favorites including hush puppies and popcorn shrimp. Within days of receiving requests for bolder flavors, Red Lobster added new spicy, Old Bay Parmesan, and Cajun sausage options to the menu. 'We want to be exciting, relevant and compelling for our guests,' Adamolekun said. Red Lobster addresses new tariffs This summer's scheduled U.S. tariffs on imported seafood have sparked concern that seafood lovers could soon see restaurant bills soar. Adamolekun was quick to calm those fears in his GMA interview, stressing that almost 90% of Red Lobster's key seafood—lobster and crab—comes from North America and Canada. These sources are largely exempt from new tariffs under agreements like USMCA. While some shrimp and other products are still imported and thus subject to tariffs, Adamolekun underscored, 'We do import products as well — so on those products we'll pay a tariff like everybody else. That impacts our business, and our intention is not to pass that through. We're not intending to do any more price increases for the rest of the year, regardless of what happens with tariffs'. Adamolekun's leadership approach Red Lobster's turnaround has not gone unnoticed, with improved customer feedback and returning foot traffic since the restructuring. The company's multiyear plan includes further renovations of its restaurants to create a more vibrant, inviting atmosphere—an appeal especially aimed at younger diners looking for experience as much as a meal. After turbulent years, Adamolekun's approach reflects both hard business lessons and a renewed commitment to guest satisfaction. The days of bottomless shrimp may be over, but under new leadership, the seafood chain is betting that menu innovation, value deals, and responsive service can once again make Red Lobster a place to celebrate. For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing. This story was originally featured on
Yahoo
5 days ago
- Business
- Yahoo
Red Lobster's 36-year-old CEO isn't repeating the chain's $11 million endless shrimp disaster. But he is reading all of your social media comments
Red Lobster, the iconic seafood chain, is charting a new course under the leadership of CEO Damola Adamolekun after making its way out of bankruptcy. In an interview with Good Morning America on Thursday, the 36-year-old chief executive addressed two questions lingering on the minds of loyal guests and industry watchers alike: Will the beloved Endless Shrimp deal return, and how will looming U.S. tariffs on imported seafood impact diners? His answers signal a reset for the troubled restaurant brand, focused on financial stability, customer experience, and menu innovation. Endless shrimp promotion: officially retired For years, the Ultimate Endless Shrimp promotion was a staple at Red Lobster, drawing crowds with the promise of limitless seafood at a set price. But as the company navigated severe financial headwinds, it became clear the beloved deal was more curse than blessing. Adamolekun stated unequivocally, 'We don't have any plans to bring it back,' all but closing the door on an offer that, while popular, ultimately helped sink Red Lobster's bottom line. The all-you-can-eat shrimp program, initially launched as a limited-time offer, was made a permanent fixture in recent years. Far from boosting profits, the promotion instead triggered multimillion-dollar losses due to customers out-eating the chain's margins. Bankruptcy filings revealed the deal alone was responsible for a loss of $11 million, accelerating Red Lobster's financial unraveling in 2023 and 2024. 'We listen intently to customer comments and try to react really quickly to deliver people what they want,' Adamolekun explained. 'But you also have to make sure you're running a profitable business.' Red Lobster has shifted its strategy to focus on value in more sustainable forms: introducing appetizer deals, weekday happy hours, and a three-course 'shrimp sensation' menu offered at select locations. While Adamolekun hasn't completely ruled out creative promotions in the distant future, diners hoping for the Endless Shrimp's return shouldn't hold their breath. Red Lobster's new menu items Adamolekun has prioritized innovation and agility, though, including extensive outreach to customers via social media, and a notable responsiveness from the chain to their feedback. Since emerging from bankruptcy, the company has overhauled its menu—streamlining offerings by 20% while adding new items like Lobster Pappardelle Pasta, Bacon-Wrapped Sea Scallops, and revitalizing favorites including hush puppies and popcorn shrimp. Within days of receiving requests for bolder flavors, Red Lobster added new spicy, Old Bay Parmesan, and Cajun sausage options to the menu. 'We want to be exciting, relevant and compelling for our guests,' Adamolekun said. Red Lobster addresses new tariffs This summer's scheduled U.S. tariffs on imported seafood have sparked concern that seafood lovers could soon see restaurant bills soar. Adamolekun was quick to calm those fears in his GMA interview, stressing that almost 90% of Red Lobster's key seafood—lobster and crab—comes from North America and Canada. These sources are largely exempt from new tariffs under agreements like USMCA. While some shrimp and other products are still imported and thus subject to tariffs, Adamolekun underscored, 'We do import products as well — so on those products we'll pay a tariff like everybody else. That impacts our business, and our intention is not to pass that through. We're not intending to do any more price increases for the rest of the year, regardless of what happens with tariffs'. Adamolekun's leadership approach Red Lobster's turnaround has not gone unnoticed, with improved customer feedback and returning foot traffic since the restructuring. The company's multiyear plan includes further renovations of its restaurants to create a more vibrant, inviting atmosphere—an appeal especially aimed at younger diners looking for experience as much as a meal. After turbulent years, Adamolekun's approach reflects both hard business lessons and a renewed commitment to guest satisfaction. The days of bottomless shrimp may be over, but under new leadership, the seafood chain is betting that menu innovation, value deals, and responsive service can once again make Red Lobster a place to celebrate. For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
13-07-2025
- Business
- Business Insider
We spent $145 at Red Lobster on a meal for 2 to see if its viral new seafood boils live up to the hype
First, some context: Red Lobster hired a new CEO in 2024 after a series of setbacks. Adamolekun's mission since September has been to turn Red Lobster around from Chapter 11 bankruptcy, which it filed for in May 2024, with over $1 billion in debt. The new CEO slashed the Endless Shrimp deal, which he said had exacerbated the restaurant chain's financial problems. More recently, he introduced customers to Red Lobster's take on seafood boils, a steamed seafood dish popular in Cajun cooking. We headed to our local Red Lobster to try the new seafood boils. Our closest Red Lobster is in Times Square. The message of the giant ad above the store — "Making the Impossible, Possible" — felt comically inspirational in this context. We walked in and were given a slip with a table number and instructed to go upstairs. On the way, we passed the lobster tank. We went around 3 p.m. on a Thursday, and there was a decent showing for a relatively off-hours lunch. Don't expect Red Lobster's $5 cocktails at this location, however. Times Square is one of the chain's few locations that doesn't offer happy hour, much to our surprise and disappointment. (We would've indulged for research purposes only, of course.) We went with a pair of strawberry lemonades instead. An insert in the menu prominently advertises Crabfest offerings, including the new seafood boils. Crabfest, a yearly event with limited-time crab offerings, started on June 23 and runs through September 14 this year. We started our meal with the chain's famous Cheddar Bay Biscuits, of course. When I (Sarah) told my friend we were going to Red Lobster, she was quick to remind me, "Don't forget to try the crab bread." (Close enough, I guess.) The Cheddar Bay Biscuits were very warm, soft, and buttery, but could've had a stronger cheddar flavor. They were fine, but I wasn't blown away by them. My editors and friends had all said beforehand that they were excited for me to try the iconic biscuits, so perhaps it was a tall order for anything to live up to that much hype. For the appetizer, we got the lobster dip. It was $18.49 and included Maine and langostino lobster, spinach, artichoke, and a three-cheese blend topped with pico de gallo, along with a side of tortilla chips. There was very little artichoke, and we could've done with a bit more spinach as well, but the dip had pretty sizable pieces of lobster. Now for the main attraction: the seafood boils. We got one of each. For $54.99, The Mariner's Boil includes a Maine lobster tail, a dozen shrimp, snow crab legs, corn, and red potatoes. The Sailor's Boil, priced at $39.99, comes with two dozen shrimp, smoked sausage, corn, and red potatoes. We added Old Bay and Parmesan flavors to the Mariner's Boil. The flavor additions weren't marked well on the menu — it's listed under an option for the "Crab Your Way" deal, which is different from the seafood boil. You can also customize for additional spice; we got the Sailor's Boil extra spicy with the roasted garlic butter, which our waiter said was the most popular flavor. Our waiter mentioned we could also get a flavor on the side, so we got the Cajun butter in a separate bowl. Jordan's Mariner's Boil was appropriately spicy. True to the added Old Bay and Parmesan flavor, I (Jordan) got the spice and herb taste I hoped for with a rich layer from the cheese. I made sure to dip each bite in the bottom of my bag to soak up as much sauce as possible. The lobster tail that we shared was more than a little overcooked, though. The Sailor's Boil was a garlic lover's dream. There was a slight tingle on the tongue with this boil (remember that we ordered it extra spicy). But overall, it wasn't particularly hot to me (Sarah), though I should note I'm a spice fiend, so very few foods ever are. The sausage was incredibly salty, which felt like overkill when the rest of the boil and its seasonings were already heavily seasoned. Though Red Lobster has stopped its $20 Endless Shrimp promotion, it felt alive and well with this boil; two dozen shrimp is no joke, and my stomach wasn't prepared for it. But what most struck me was how much minced garlic was in this boil. Garlic lovers, this is definitely the flavor for you. The Cajun butter was a little acidic for our taste. It was sour and reminded Sarah of a vinaigrette. It tasted too much like lemon for Jordan's idea of a Cajun butter. The portions were more than we could eat, so we took leftovers to go. For reference, this is how much of the Sailor's Boil Sarah had left over. Our waiter kindly offered us a to-go container for our largely untouched side of Cajun butter. We politely declined. In total, we spent $145 with gratuity included. Our subtotal for one appetizer and two seafood boils came out to about $113. In true Times Square fashion, gratuity was included (thank you, tourism). Jordan concluded that it's an affordable price point for two seafood boils. The $54.99 Mariner's boil, in particular, is a great deal. It allows you to get crab, shrimp, and lobster without paying as much as you would at many Cajun restaurants. And for the road, we left with warm bags of Cheddar Bay Biscuits! When our waiter brought us our to-go containers, he gave us some biscuits to take home, and I (Sarah) have to say, I liked these a lot more than the ones we ate in the restaurant; these ones seemed better flavored and seasoned, and also had a better texture. So it's possible it was just a "bad" batch that disappointed me in-restaurant.
Yahoo
03-06-2025
- Business
- Yahoo
Struggling Seafood Chains That Are Making Waves Again
Seafood can make for a luxurious meal, particularly if one isn't lucky enough to live near the ocean. It's a real treat to eat flaky cod or halibut, big meaty shrimp, or delectably tender clams, all lightly breaded and deep-fried and served alongside french fries, some great-tasting restaurant coleslaw, and maybe some hushpuppies. Chain establishments offering a beloved line of seafood staples have traditionally been big players in both the sit-down restaurant industry and its more populist and informal counterpart of the fast food scene. For better or for worse, consumer tastes change and cycle. Every so often, the restaurant companies that specialize in indulgent seafood seem to suffer mightily. Not only do they face the same problems as other restaurants, but they also need to grapple with the ever-changing prices of seafood. By and large, fish-focused restaurants aren't as prominent in North America as they once were, with all kinds of seafood chains closing down an alarming number of locations in recent years. But there's hope for the future. Many of those restaurants that were once seemingly close to drowning are coming back up for air. Here are some seafood chains that are still swimming and making big splashes. Read more: Pizza Chains That Might Not Be Around Much Longer At one point, it appeared as if Red Lobster was dead in the water. The laid-back but classy seafood chain had been a go-to for those seeking a straightforward business lunch, date night, or celebratory meal of crab, lobster, shrimp, chowder, and a basket of Cheddar Bay Biscuits since 1968. In 2024, it looked like it was only a matter of time before the venerable seafood chain sank. After suffering some significant financial losses — and, specifically, losing a lot of money on its Endless Shrimp promotion after making it permanent in 2023 — Red Lobster filed for bankruptcy to stay afloat. Within three months of doing so, as many as 99 Red Lobster restaurants had closed. Not only did Red Lobster recover, but it recovered in a remarkably swift fashion. Parties associated with Fortress Investment Group formed RL Investor Holdings LLC and injected over $60 million into the operation. By September 2024, and with the blessing of a court, Red Lobster emerged from bankruptcy. The downsized and salvaged Red Lobster then began a program of economic reinvention, simplifying the menu, changing some recipes, and planning a new look for its dining rooms. With a menu built around its distinctively diamond-shaped fish filets encased in a salty, crispy brown shell, hushpuppies, clam strips, and surprisingly delicious crumblies, Long John Silver's became one of the first names in fast food fish and seafood not long after its 1969 founding in Kentucky. By the end of the 1980s, Long John Silver's was one of the most commonly found fast food restaurants in the United States, with approximately 1,500 locations. But just a few years later, the company was in trouble. In 1998, after shutting down 25 outlets, Long John Silver's Inc. filed for Chapter 11 bankruptcy protection. It cited $457 million in debt and assets of only $329 million. By the early 2020s, Long John Silver's decline had continued to a point where it only retained roughly 500 locations. But the world needs Long John Silver's, and the chain's executives agreed. Under the leadership of its president, Nate Fowler, Long John Silver's underwent a reboot. The company reevaluated its franchisee agreements, its economic structure, and onsite technology. It also changed up the menu slightly, making the fish thicker, improving its marinades, and rolling out value-priced options, a loyalty program, and a smartphone app. Just two years after the Bubba Gump Shrimp Co. made its fictional debut as a lucrative seafood supplier in the 1994 blockbuster "Forrest Gump," a real-life restaurant with the same name opened in Monterey, California. Similar to how Benjamin Buford "Bubba" Blue recites all the different, tasty ways to prepare shrimp, the Bubba Gump Shrimp Co. restaurants — which have popped up in dozens of locations in heavily foot-trafficked areas, primarily near tourist hotspots — sells shellfish in addition to other tried-and-true seafood favorites. Landry's, which also owns chains such as Del Frisco's Double Eagle Steakhouse, Rainforest Cafe, Morton's The Steakhouse, and Claim Jumper, bought the Bubba Gump Shrimp Co. in 2010. At that point, it was a chain of 32 locations. This number has since dwindled, with restaurants shutting down in Charleston, Maui, and Baltimore, the latter of which closed by order of the city's health department over issues with its food permit. After a few years of downturn, however, Landry's is looking to grow the Bubba Gump Shrimp Co. once more. In 2025, plans were put into motion to open a new restaurant in the well-traveled resort area of South Padre Island in Texas. The enduring image of the prim and proper English butler is thanks in part to Arthur Treacher, a British actor who played several variations of the role before serving as the sidekick in the "The Merv Griffin Show." In 1969, he licensed his name to an upstart fast food chain selling the quintessential English meal, with the first Arthur Treacher's Fish & Chips opening its doors in Ohio. The restaurant's menu was novel and pleasing enough to encourage massive and rapid growth, exploding into a national chain of 826 restaurants in about a decade. Three years after the frozen fish company Mrs. Paul's Kitchen acquired Arthur Treacher's, it sold it off to Lumara Foods of America in 1982, and the chain filed for bankruptcy two years later. What was once a major fast food company shrank to only 27 outlets by 2010, and, by 2021, the only real Arthur Treacher's Fish & Chips remaining was the one in Cuyahoga Falls, Ohio. As it sat on the brink of oblivion, Arthur Treacher's Fish & Chips waged an astonishing comeback. After hot dog company Nathan's Famous bought the fish joint in 2021, it made plans to restore Arthur Treacher's as a low-cost ghost kitchen concept. Meanwhile, the freestanding, full-service version of Arthur Treacher's is now three times its former size. The third store opened in Cleveland Heights, Ohio, in April 2025. Once a family-owned seafood market in the Boston area that also sold fish and chips baskets, Legal Sea Foods has grown a lot since 1950. Eventually becoming a full-service, slightly upscale restaurant chain offering clams, oysters, lobster, and fried fish, as well as a seafood shipping operation, Legal Sea Foods grew to a modest but robust network of 35 restaurants by the late 2010s, raking in more than $240 million in annual sales. Then the COVID-19 pandemic happened, forcing the majority of public spaces, restaurants included, into temporary shutdowns to stop the spread of the coronavirus. Casual eateries suffered massively in 2020, and by August of that year, multiple Legal Sea Foods outlets wound up closing down forever, reducing the chain to 31 entries. The post-pandemic economic climate wasn't much kinder to Legal Sea Foods. By early 2025, this number had decreased even further. But while some of its restaurants have shut down, Legal Sea Foods has also opened new locations. In July 2024, it debuted a large new spot on the Chicago Riverwalk as its flagship eatery. It is also rethinking other aspects of its operations under its owner, PPX Hospitality Brands, which took over in 2020. The parent company relocated the Legal Sea Foods corporate office after concluding that its current headquarters were outdated, as well as constructing a new innovation center in Milford, Massachusetts. After starting out as Mr. D's Seafood and Hamburgers in Donelson, Tennessee, in 1969, Captain D's Seafood became one of the biggest names in fast food fish, particularly in the South. By the mid-2000s, more than 600 Captain D's were in operation -- a number that quickly and severely declined in 2008. The chain's biggest franchisee at the time, Serve Holdings LLC, filed for bankruptcy. After struggling to pull in enough customers, the franchisee found itself in debt to Captain D's to the tune of six figures. Over the next decade and a half, more Captain D's restaurants continued to close. The operation consisted of just over 500 locations by 2024. These closures included its restaurant in Myrtle Beach, South Carolina, plus a number of spots in Texas. Nevertheless, in 2025, Captain D's announced an assertive plan to expand, and into uncharted territory, too. Over the next two years, it will expand into Maryland with two new restaurants. It will also grow its footprint in Texas, with three new locations on the way, including one near San Antonio's Lackland Air Force Base. Captain D's corporate office is also on the lookout for franchisees who want to place restaurants in Canada, Central and Latin America, the Caribbean, Spain, and several countries in Asia. For more food and drink goodness, join The Takeout's newsletter. Get taste tests, food & drink news, deals from your favorite chains, recipes, cooking tips, and more! Read the original article on The Takeout. 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