2023: Red Lobster expanded its Endless Shrimp to become a daily promotion, but it was a disaster.
In January 2023, Restaurant Business reported that Red Lobster had closed eight restaurants in the span of a few months as part of a routine review of restaurant performance. However, the worst was yet to come.
Initially a one-day-a-week deal for $20, Endless Shrimp became a daily promotion in summer 2023 to attract more customers as Red Lobster struggled to keep up with a changing industry.
However, inflation and the rising cost of seafood created rough seas for the chain. In 2023, Red Lobster raised the price of Endless Shrimp twice, eventually landing at $25 to cope with demand and improve profits.
Despite the increased price, the all-you-can-eat strategy backfired. The chain reported operating losses of $11 million and $12.5 million in the two quarters following the initial daily endless shrimp promotion launch.
In 2024, the deal is only available on Mondays.
However, Endless Shrimp isn’t the sole cause of Red Lobster’s demise, Business Insider’s Emily Stewart wrote in an analysis of the chain’s struggles over the years.
Changing tastes are also a major issue.
The seafood restaurant industry faces significant challenges in the US, Darren Tristano, the CEO and founder of Foodservice Results, a food-industry consultancy, told BI.
Many customers in the mood for seafood are more likely to seek it out at a steakhouse, rather than a seafood-specific restaurant or chain like Red Lobster.
“If anything, the Endless Shrimp deals are probably as much a symbol of just either desperation or poor management or both,” Jonathan Maze told BI.
