Why Even More Red Lobster Locations May Close Their Doors - Tasting Table

"Now, its troubles appear to be continuing. Despite the fact that many consumers are tightening their budgets due to inflation and tariff worries, Red Lobster has actually seen higher-than-usual traffic in restaurants. Adamolekun told the Journal that "sales have increased by around 10% from last year," but that the restaurant is still recovering after being rescued from bankruptcy in 2024 by Adamolekun, who is the former CEO of P.F. Chang's."

"The company has also laid off its managers and corporate staff and is trying to negotiate import fees with its seafood vendors. Under Adamolekun's leadership, the brand has pulled off a successful redesign, which included a new menu and more modern marketing campaigns. Like Target, Red Lobster has also issued a new corporate directive requiring staff to acknowledge customers who are within 10 feet and verbally greet them if they are four feet or closer."

CEO Damola Adamolekun plans to shrink Red Lobster by reviewing restaurant leases and streamlining operations, including additional location closures. The chain closed more than 100 restaurants across 28 states in 2024. Same-store traffic has risen and sales increased by around 10% year-over-year, yet the brand remains in recovery following a 2024 bankruptcy and subsequent rescue led by Adamolekun. The company enacted layoffs of managers and corporate staff and is negotiating import fees with seafood vendors. The brand completed a redesign with a new menu and modern marketing and introduced a customer-greeting directive. Historical ownership changes and costly real-estate deals contributed to past financial distress.

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