Posted on 12/06/2023 6:33:19 PM PST by nickcarraway
Not every deal is a good deal.
Yes, you can, in fact, have too much of a good thing. And it appears Red Lobster is learning that the hard way.
In an earnings report call in early November, Ludovic Regis Henri Garnier, the CFO of Thai Union Group, which owns Red Lobster, announced that its Ultimate Endless Shrimp deal, which is normally a limited-time offer but was added to the daily menu in June, was exceedingly popular — so popular that it caused the restaurant chain to post an operating loss of more than $11 million in the third quarter of 2023.
"We knew the price was cheap, but the idea was to bring more traffic in the restaurants," Garnier told investors, according to Restaurant Business. "So we wanted to boost our traffic, and it didn't work."
Red Lobster Is Launching a Line of Frozen Seafood Products, and Yes, It Includes the Biscuits To be fair, according to the earnings call, the chain of 670 restaurants did experience a 4% year-over-year growth in its number of customers thanks to the deal, but the deal's $20 price tag for patrons to get two different types of shrimp was just too little to make up the difference. So now, it's upped the price to $25.
"We want to keep it on the menu," Garnier added. "And of course we need to be much more careful regarding what are the entry points and what is the price point we are offering for this promotion."
Now, for $25, guests can choose two shrimp-centric options, and, as Red Lobster noted in a June press release, "When they are ready for more, they can order additional shrimp selections until their cravings are fully satisfied." The meal choices include Garlic Shrimp Scampi, Coconut Shrimp, Shrimp Linguini Alfredo, Walt's Favorite Shrimp, and Garlic Grilled Shrimp Skewer. And every meal comes with a choice of side, along with the restaurant's famed Cheddar Bay Biscuits.
Sadly, this shrimp debacle could be putting Red Lobster in real trouble. According to Restaurant Business, the restaurant's parent company had expected its losses to hover around $17 million earlier this year, but a better-than-expected second quarter boosted that number to just $14 million. Now, however, those losses are expected to total around $20 million. In early 2023, Thai Union had threatened to abandon Red Lobster altogether over its losses, which at the time had only hit $9.8 million.
As Thai Union's chief executive officer Thiraphong Chansiri, said in an interview in March, "Thai Union has never prolonged any bad businesses," adding that it had shut down other unprofitable factories before.
Sea bugs,... yum😐
Jim Gaffigan?
Lol, no.
“Bring in more traffic by losing money. Works every time.”
That’s what they teach at the “Joe Biden School of Economics.”
Free stuff is a misnomer. No one gets free stuff. The gubmint prints money and gives it to them so they can go and buy stuff because no one is actually given free stuff. We're capitalists. You have to buy stuff, at least after your $999 shoplifting limit runs out. It's the getting stuff without providing in kind contributions of labor in return that is the downfall of all communist societies starting with the first year of the Mayflower colony.
We lose a little bit on every sale but make it up in volume,
= = = =
Change bank
https://www.youtube.com/watch?v=CXDxNCzUspM
23. Re seeing the two-headed shrimp. Do you mean AOC?
Fukushima shrimp.
not a fan of Red Lobster...overpriced swimming in butter dishes....maybe I’m the only one in America that does not like their rolls...
however, people would grab food and not eat it...taking several crab legs and not eating it.....it was easy to see that they lost money on buffets...
The Amish??
If doing that is ruining them, why don’t they stop doing that?
Red Lobster is the most expensive place in our town to eat. Most entrees are pushing $30. We haven’t been there in years.
yes. they will camp out for HOURS. I could tell ya stories :>)
Add endless to anything and it’s ruined, aka sex.
I know, right?
Tried the scallops? They are barely larger than peas.
Large shrimp or giant prawn. Which is which? What’s the difference?
In 30 days, I’ll be in Negril eating some!
All you can eat AOC ?
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