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Red Lobster is open for business – and its CEO Damonla Adamolekun is determined to steer the iconic seafood chain back to profitability and growth.
35-year-old Adamolekun, who successfully revitalized P.F. Changs during the pandemic, now faces the daunting task of restoring Red Lobster to its former glory. His to-do list includes an overhaul of the menu, a refresh of the restaurant environment, and building a strong executive team.
With a budget of $70 million, Adamolekun plans to start the sweep of changes with low-cost updates, including changing the music and dimming the lights, he said in an interview with the Wall Street Journal (NWSA+1.12%).
“At some point, you want to address the elephant in the room,” Adamolekun said in reference to the seafood chain’s turbulent period that saw over 100 store closures and a bankruptcy filing with more than $1 billion in debt. The financially dubious promotion, the $20 Endless Shrimp deal, which is no longer being offered, exacerbated the financial strain.
Despite the tough industry environment, Adamolekun remains optimistic. “I’m used to entering at challenging times,” he said, pointing to his work with P.F. Changs during Covid. Yet, he also stressed the importance of reminding customers why they should return to Red Lobster.
Alongside the physical changes, restaurants will have a dedicated host at all times to greet guests, a direct response to the staffing issues that plagued the brand in the past.
In addition to improving service, Adamolekun is focused on simplifying the menu. His goal is to highlight value-driven options, while making the chain’s best-sellers more prominent and easier to find. Recently, Red Lobster reintroduced its popular hush puppies.
Of course, the challenges ahead are substantial. Rising commodity costs – particularly for shrimp – and the need to attract younger, fast-casual leaning diners present hurdles for the chain. Red Lobster will need to figure out how to appeal to consumers while managing financial costs, Adamolekun noted.
Red Lobster is not alone in facing challenges. Other restaurant chains, including TGI Fridays and Rubio’s Coastal Grill, have filed for bankruptcy, making 2024 one of the toughest years for the restaurant industry since 2020.
Still, Adamolekun remains hopeful. “We’re entering a new chapter that’s going to be about investment and growth,” he told the Journal, noting that “98% of Americans know Red Lobster. It’s one of the strongest brands in the country.”