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.
35 posted on 04/18/2024 5:55:27 AM PDT by Wallace T.
RL, like most restaurants with a busy bar, makes 85-90% of it income from the liquor. The food is incidental. The RL crowd must not be big drinkers...
44 posted on 04/18/2024 6:19:07 AM PDT by Carriage Hill
(A society grows great when old men plant trees, in whose shade they know they will never sit.)