RED LOBSTER’S COLLAPSE: WAS IT ALL-YOU-CAN-EAT SHRIMP, OR PRIVATE EQUITY?

https://fastcilitycorp.com/ ^ | Jun 19, 2024 | Fastcility

[Jonty30]

Red Lobster, known for bringing all-you-can-eat shrimp to the average American and which was at on point the world’s largest seafood chain, filed for bankruptcy last month. Red Lobster now has more than one billion dollars in debt. They closed 50 locations about two months ago and just announced a list of 600 locations it plans to close.

What went wrong?

Same Old, Same Old

Remember going to Red Lobster as a kid? You might have tried your first lobster tail, or surf-n-turf there. That experience you had as a kid, would be hardly different if you went into one of their restaurants now. In the view of industry observers, that might be key to understanding an important part of their demise.

Other full-service chains have revised their menus and refreshed their looks over the last ten years in order to attract more traffic. After the pandemic, consumers started using more disposable income for travel. So fighting to retain customers and appeal to new demographics was essential. Meanwhile inflation from higher labor costs and goods hit restaurant menus.

[Romans Nine]

Red Lobster has been lousy for the last 20+ years.

Bye………

[unclebankster]

Trump Girl,

The restaurant business is a tough business, that I don’t have the stomach for.

My grandparents owned one from the late 1940’s into the mid 1960’s. Customers would come in telling my grandmother you won’t believe that new restaurant that opened up, it has better prices and more food.

Eventually within a year or two the new restaurant would go under, while my grandparents just kept grinding away with a fair priced menu and consistent portions.

This was also a time period where FDR and Truman were trying to unionize every thing in sight. However, you didn’t have a food inspector up your ass every two seconds, rents were lower, labor was lower, and chains were around but didn’t have the market presence they do today.

[Farmerbob]

All you can eat shrimp? I’ve only been to Red Lobster 6 or 8 times but it wasn’t for the langostino. I went for the all you can eat Cheddar Bay Biscuits. The last 3 times I had to request biscuits and the last time they were not anything close to the original biscuits.

[central_va]

I do agree that the high wages for low skills is going to destroy the restaurant industry.

You can't even recognize sarcasm? Blame the dishwasher for the countries woes? No wonder the GOPe just can get MAGA.

[Wallace T.]

Another factor is declining disposable income due to the high inflation in this decade, the result of Bidenomics. Those restaurants that survived the COVID lockdowns faced rampant cost increases due to supply chain issues and later increased food and labor costs. Passing it onto the customers and cutting corners in quality and service drives away those customers who sell can afford to eat out.

[Cold_Red_Steel]

No one goes to red lobster anymore. Their customer base leaves low tips, dine and dash, complain to get free meals …. Their customer base has become epic jokes on the internet.

---

The last time I took my wife there (it was several years ago and she insisted even though it had already gone down hill) the dining room was nearly empty (lunch time on a Saturday) but they put us right next to two other parties. One was a quiet, old couple. The other was a young man and young woman.

The young man was very loud and erratic. The woman kept trying to quiet him (with slurred speech and intermittent laughter). The waitress acted like nothing was wrong. Finally, when she saw we were bothered she claimed the guy was “Autistic.”

I work with special needs kids and I typically can tell whether or not someone is autistic. I grew up around addicts and can usually tell if someone is stoned.

If I recall correctly, the couple took off without paying, so there you go!