Red Lobster CFO blames chain's 'Endless Shrimp' promotion for company's whopping $11M Q3 loss

Daily Mail ^ | 28 November 2023 | MARTHA WILLIAMS

[End Times Sentinel]

Red Lobster faced a staggering $11 million loss in the third quarter of 2023 - which the company's CFO is blaming on the restaurant's all you can eat shrimp deal.

Financial reports from the third quarter - running from July 1 through September 30 - showed the iconic American seafood restaurant's drastic downfall.

Red Lobster wanted to lure more customers in after facing a significant financial loss of $5.4 million in the second quarter - but they massively fumbled their plans by offering an 'all you can eat' promotion that was a bit too generous.

The 'Endless Shrimp' offer was initially a special - but in June it claimed a permanent spot on the Red Lobster menu, and for just $20 diners could indulge in as much of the shellfish as they could stomach.

Foot traffic at the chain restaurant increased by four percent after the deal popped up as a permanent offer in June.

[dfwgator]

We had a restaurant called Sirloin and Brew with all you can drink brew.

What could possibly go wrong?

[ansel12]

I sometimes had mountains of shrimp visiting my dad, he didn’t just buy shrimp from the boats, he also had his own shrimp boat for a while, we even had a little place where we could hand seine for giant shrimp after we had gigged all the flounder and crabs we wanted.

[ExpatCanuck]

My first thought exactly. Certain demographics have their inherent perils.

[grundle]

It was his biggest lawsuit since he sued the makers of the film The Never Ending Story.

[Capt_Hank]

Damn, I’m allergic to them. Just 1/2 of one and a trip to Emergency Room is needed.

[Some Fat Guy in L.A.]

Local seafood place offers all you can eat popcorn shrimp for $11.99 on certain days. Don’t know how they can afford that.

But then, they cater to an older crowd. At my age (and taking Ozempic) I can’t eat but 2 servings, even then I sometimes take some home. I would have eaten them out of business in my younger days.

[nickcarraway]

I can’t wait for the new “Endless Sawdust” promotion!

[BAN-ONE]

True story here..
J.L. and Don.
(Two co-workers)

Leave work early one day because their sons are playing in a big time high school basketball game in a neighboring community that evening.

They stop by a famous lakeside “all you can eat” seafood place not far from the gym.

Arriving at the game late, J.L.and Don find the only two side by side seats left. The place is packed.

My friends have over-indulged to the point of misery. After a few minutes of intense play.. My buddy J.L. grabs his belly with both hands and proclaims, “Oh, Don.. Them crabs are killin’ me!”..

The noisy basketball game suddenly gets real quiet around Don and J.L. ..

[unclebankster]

Just another food chain that will go belly up before the decade is over. The cheap money era has led to over capitalization and redundant business models in this sector.....a nonessential sector BTW.

Currently we have expensive real estate, a tight labor market, and higher interest rates.

The last thing we need is millennial labor wasting their time, while developing limited skills, servicing the Wealthy, Public Pensioners, & Socialist Security Recipients.

Robots & AI can take care of this employer-employment problem(sarcasm)

[gibsonguy]

Choosing to cater to a certain demographic has its perils.“

Especially when offer an all you eat option to an expensive item on your menu. What idiot thought that would be a good idea?

[Dr. Sivana]

"All you could eat shrimp" put Beefsteak Charlie's out of business.

[Dr. Sivana]

That is a loss of a little over $15,000 per unit.

Restaurants all over are hurting, and that relatively small loss can be absorbed by a Darden chain for long enough to put some competitors under with current comditions.

[rlmorel]

When I was in the USN down in Florida back in the Seventies, I went with a few guys to a seafood place known for its "all you can eat" aspect.

Well, one thing led to another, and soon we were having a contest to see who could eat the most shrimp. Not how fast, but how much.

Well, I love shrimp. This was heaven. I had already eaten a few fried one, then began eating steamed or boiled ones.

When the physical bill came due, it was bloody awful. I was in so much discomfort, I had to lay flat in the back of that little Datsun pickup truck all the way back to the base.

I couldn't eat shrimp for many years. I was so angry at myself for doing that, ruining my love for shrimp. That was the last time I ever did that. Just stupid.

However, I was able to eventually regain my appetite for it...thank goodness. But it did break me of the "All you can eat" mindset.

I do love shrimp. I made this recipe tonight for dinner, and it is awesome. I had it in Tapas restaurants, and I worked for a long time to reverse engineer that dish, I loved it so much. You can prepare and cook this in 10 minutes, and you don't have to know how to cook.

---

Gambas al Ajillo (Spanish Tapas dish)

• INGREDIENTS
  • 10 medium to small shrimp (raw) MAKE SURE TO PAT THEM DRY, OR AT LEAST REMOVE EXCESS MOISTURE

  • 3 cloves garlic (You may want to use one or even two the first time-read the explanation at the bottom of why I use so much garlic)

  • 1 Bay Leaf

  • 6 Peppercorns or lots of ground black pepper

  • 1/8 Tsp Kosher Salt

  • Fresh Parsley (to taste)

  • Dried Red Chili Peppers, dried (most restaurants put one or maybe two in, I use six or more!)

  • 1/3 cup Spanish Olive Oil

  • High quality crusty white bread. (I can't get the kind of Spanish bread, so I use Ciabatta rolls and slice them up about a half inch thick slices. No matter how much you slice up, you will end up using all of it! I brush them with olive oil on one side and put them under the broiler. Be vigilant and take them out as soon as they begin changing color.

• Fill a 1 cup measuring cup to the 1/3 level. I have a metal one, and I place it directly on the stove burner at medium-medium high heat. Then I prepare the other things.

• Slice the garlic cloves. I used to use a single edge razor to slice the garlic paper thin, but found a nice small mandolin that gets it nearly as thin...and this is key: You have to slice it as thin as you can. The reason is, unless you really like garlic A LOT if it isn't really thin, the dish is nearly inedible. I will explain later why this is important. So slice all three cloves up.

• Find an oven capable small dish or ramekin. Pat dry the shrimp and throw it in. Add all the other ingredients, Bay Leaf, peppercorns, garlic, parsley, salt, and of course, the Chili Peppers.

• Now, the olive oil in the metal measuring cup should be heated up, just about smoking. Really hot. Here is how you cook: Pour the oil into the dish.

• That's it. Just gently pour it it. It sizzles like mad, and if you were silly enough to not pat the shrimp dry, it is going to sputter too! When I do this, I have a metal copper clad dish with handles. So I put a big cast iron pan on the stove, set to med-med high heat, and an instant before you pour the oil in, I place the copper clad pan into the frying pan and immediately pour the smoking hot oil over the shrimp and other ingredients.

• It keeps the oil sizzling longer, and if the oil spatters, it is in the pan, not on the burner (why I don't put my copper clad small pan directly on the burner)

• Let it sizzle. Note-it is NOT deep frying it, but it is the pouring it over the ingredients that makes it sizzle. So, you can even turn off the burner as soon as you pour the hot oil in. Stir it once. Look at it. Pause. Stir it again. Do this three or four times to make sure everything gets mixed and immersed in the hot olive oil.

• Now, everything is cooked perfectly, no matter how long or how little you let it sizzle. You cannot overcook it or undercook it!

• Remove the small metal pot from the frying pan, and pour the contents into something that wont burn you as you eat it. Dip the bread in the oil, throw a shrimp and chunk of red pepper on top and eat it!

I have to take some extra time to explain the garlic aspect of this.

I cannot stand garlic when it has that taste where it hasn't been cooked enough or cooked the right way. Gives me indigestion, makes me reek of garlic. I don't like it. But this dish does not affect me this way.

Here is what happens. In this process of simply pouring the smoking hot oil over the pile of ingredients in the pan, the garlic nearly disappears, and if you slice it thin enough, it actually WILL disappear. Amazingly. It doesn't get brown or carmelized...or bitter. It just gets softer and softer, and loses the raw garlic flavor (which I dislike). If you don't slice it thin enough, you may still get that strong garlic flavor. I love garlic, but I don't like garlic, if you know what I mean.

Then when you eat it with the bread and the shrimp, often, you only find a few slices of translucent, completely cooked, non-garlicky...garlic. Better than oven roasted garlic done right. I am now four hours past dinner, and...no garlic aftertaste!

[Liz]

It would have made good business sense when they saw the shrimp deal increased traffic, if red
lobster slightly raised its prices on beverages....or some such increase......to offset the shrimp costs.

[Harmless Teddy Bear]

Sounds like what we used to call "Camarones al PilPil" except we use to add a bit of white wine.

So good. And yes, you do eat all the bread.

[rlmorel]

I haven’t tried white wine in it yet-worried about that hot oil splatter, but I’ll bet I could do it...going to try it next time...:)

[Obadiah]

D’oh!

[PGR88]

[jonrick46]

The group of gluttons who gorged on mountains of shrimp did not do it for the taste. They did if for the novelty. You could have thrown out all-you-can-eat dog food and they would have heaped their plates. Red Lobster should have only offered shrimp that was deep fried. Deep fried shrimp needs tartar sauce, ketchup or cocktail sauce. Whatever combination quickly engorges the stomach and quickly triggers the appetite alarm. If ignored, it makes for a quick trip, with feathers to tickle the throat, to the porcelain throne God without the advantage of a barf bag.

In ancient Rome, such gluttony required a vomitorium.

[BookmanTheJanitor]

"Does this sound like the actions of a man who had ALL he could eat?"