The $11M shrimp mistake Red Lobster won't repeat

"In May 2024, Red Lobster filed for Chapter 11 bankruptcy protection. Many of the headlines surrounding the company's bankruptcy concentrated on how its then-endless shrimp offering, where customers could eat as much shrimp as they wanted for a fixed price, led the company to an $11 million loss and, ultimately, insolvency. However, as Fast Company previously reported, while its endless shrimp losses helped contribute to Red Lobster's financial woes, they weren't the only source of Red Lobster's troubles."

"But by the fall of 2024, Red Lobster emerged from bankruptcy with new owners, new bosses, and fewer stores-and hopes for a return to profitability. Since then, the company has added new menu items and the return of old events to excite diners and boost sales. And now, the company is embracing its endless shrimp fiasco in hopes of clawing back even more customers."

In May 2024 Red Lobster filed for Chapter 11 protection after sustained losses that included an $11 million shortfall tied to its then-endless shrimp promotion. The endless shrimp offering contributed to losses but other pressures—post-pandemic declines in foot traffic, inflationary costs, and onerous rental leases—also hurt profitability. The company emerged from bankruptcy in fall 2024 under new ownership with fewer locations and a refreshed menu and events strategy. The company is now launching a SpendLESS Shrimp campaign that references its endless-shrimp past as a marketing tactic to draw customers, though endless shrimp itself is unlikely to return.

Read at Fast Company