Could Red Lobster's endless shrimp return? New CEO weighs in
A Red Lobster restaurant in Fairfax, Virginia, US, on Friday, June 7, 2024. Photographer: Ting Shen/Bloomberg via Getty Images
Red Lobster’s now infamous endless ship promotion could return at some point in the future, but ‘not the way that it was done’ before, when people sat and stuffed their face for hours for $20 and posted videos of it on TikTok.
Damola Adamolekun, the 35-year-old new CEO of Red Lobster, told CNN in a recent interview that the endless shrimp deal created ‘a lot of chaos.’ When Adamolekun saw the $20 endless shrimp deal be made permanent, years before he would become CEO, he thought, "that’s a very expensive product to give away endlessly."
"You stress out the kitchen. You stress out the servers. You stress out the host. People can’t get a table," Adamolekun said. "It creates a lot of chaos operationally."
Red Lobster's "Endless Shrimp" promotion, a beloved limited-time tradition for over 18 years, was made permanent in 2023, allowing customers to enjoy unlimited servings of shrimp for just $20, including the iconic Cheddar Bay Biscuits.
The affordability and appeal of the endless shrimp deal led to a significant increase in customer traffic, but not enough to offset the costs of people eating plates and plates of shrimp, increasing wait times and taking up tables that would otherwise be filled with new customers.
RELATED: How 'endless shrimp' may have ended Red Lobster
In November 2023, Red Lobster reported an $11 million loss, which escalated to $12.5 million in the fourth quarter. Those losses were primarily due to the low pricing of the "Ultimate Endless Shrimp" promotion.
Red Lobster filed for Chapter 11 bankruptcy protection in May, resulting in the chain closing dozens of U.S. restaurants, including at least five locations in both California and Florida, and four in both Maryland and Colorado.
Red Lobster exited the bankruptcy process in September after RL Investor Holdings LLC acquired it.
Adamolekun said the company has a long-term investment plan that includes a commitment of over $60 million to help revive the brand.
Asked if he would ever consider bringing back the endless shrimp promotion, he said, "I never want to say never, but certainly not the way that it was done."
"We won’t have it in a way that’s losing money in that fashion and isn’t managed," he told CNN.