[Carriage Hill]

“Red Lobster launched a $20 all-you-can-eat shrimp deal which, although popular with customers, ended up costing the company over $11 million in one quarter.”

Piss poor planning.

[Wallace T.]

The only rationale for a loss leader is that you can make up for the loss by cross-selling other items, such as drinks or appetizers. The clientele Red Lobster attracted apparently did not do that in sufficient numbers.

Every restaurant chain has its life cycle. Red Lobster is no exception.