Red Lobster’s endless shrimp deal created ‘a lot of chaos,’ new CEO divulges on bankruptcy

Published On Oct 7, 2024, 12:18 PM

Red Lobster's $20 endless shrimp promotion has been criticized by the new CEO, Damola Adamolekun, who claims it contributed significantly to the company's bankruptcy filing earlier this year. Although the promotion had been a staple since 2004, it became a year-round item in 2023, leading to operational chaos, overwhelming staff, and ultimately financial losses for the company. The majority shareholder, Thai Union Group, was also blamed due to their lack of restaurant operational experience, which left the chain struggling to manage its promotional strategy. Red Lobster filed for Chapter 11 bankruptcy protection in May and was subsequently acquired by RL Investor Holdings LLC.