The Red Lobster restaurant chain is possibly considering closing more sites as a cost-cutting maneuver, according to its CEO Damola Adamolekun, per The Wall Street Journal, The chain still has not fully regrouped after its bankruptcy two years ago, when it shuttered approximately 130 locations.
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The situation seems to still be evolving. "There's a lot of positive signs," said Adamolekun per the outlet, "but we inherited a very damaged brand, so there's still work to do to repair all of that." So Red Lobster's outlook sounds like extremely guarded optimism tempered by hard, cold facts.
What Contributed to the Chain's Present Plight?
There were a few factors, per the New York Post. Twelve years ago, the seafood chain shed ownership of its real estate and wound up struck with lease payments. Then there was "an endless shrimp deal" that did not work out as planned. With the chain losing money and sales diminishing, all the accumulated missteps and unfavorable circumstances culminated in Red Lobster's bankruptcy filing in May of 2024.
The CEO Has the Experience to Hopefully Turn Things Around
According to the Post, Adamolekun, who had been at the helm of Red Lobster since August 2024, "led a restructuring effort at P.F. Chang's," so he already knows the ropes and the pitfalls. But it's going to be a daunting task. Tariffs have hiked up the price of imported seafood. Plus Red Lobster's staff has been affected. The outlet notes that 10% of its corporate employees have been let go.
Other Chains Also Are Having Problems
Red Lobster is not alone in the wilderness when it comes to having difficulties these days. Other fast food and casual dining restaurant chains are also doing what they can to remain lucrative in a volatile and challenging economic climate. That includes taking drastic measures just to stay afloat.
For example, Bahama Breeze is shuttering some sites and converting others to restaurants in its parent company's portfolio. Cracker Barrel was left reeling after a failed rebrand and modernization. Those moves alienated customers who love its homey look and menu. Pizza Hut plans to shut down about 250 of its locations.
