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Red Lobster’s new CEO, Damola Adamolekun, boldly declared the “Endless Shrimp” promotion a failure, citing its significant strain on the restaurant’s operations.
Launched in 2023 to boost foot traffic and sales during the pandemic, the $20 promotion quickly became a crowd-pleaser, but had unintended consequences like long wait times and overstretched kitchens. Ultimately, it created “chaos,” Adamolekun told CNN (WBD+1.56%) in an interview.
“When you have endless shrimp and you have people sitting and eating for hours, your stress out the kitchen, the hosts, and the servers,” he said.
On top of a hectic atmosphere, the endless deal, served with a side and cheddar biscuits, was a “very expensive product to give away endlessly,” he said.
In May, the seafood chain filed for Chapter 11 bankruptcy protection to address financial obstacles tied to series of failed lease-back agreements, compounded by the financially dubious $20 “endless shrimp” deal, which hurt earnings. Though still available, the deal only runs on Mondays for $25 in-store and excludes holidays.
In early September, Red Lobster announced it was nearing the end of its bankruptcy process, pending court approval of a reorganization plan that would solidify Adamolekun in the CEO role.
As Red Lobster moves forward with its 545 remaining locations, Adamolekun said there are plans to “reduce the menu” to focus on items that allow for better service and food preparation. While there are no plans to plan close more restaurants, he noted that infrastructure and technology investments will take time, with immediate impacts expected.
Red Lobster’s comeback is uncertain as it navigates these changes and adapts its marketing strategies to create a more sustainable business. However, analysts previously told Quartz that the iconic chain has a “tremendous future,” suggesting its goodwill and brand equity could help it “emerge as a healthier business.”