Endless Shrimp overwhelmed Red Lobster kitchens with large shrimp volumes while other orders cooled. Servers had to monitor refills by counting shrimp and ensuring plates were empty before additional servings. Continuous operation of the promotion in 2024 reduced profits and contributed to bankruptcy. After planning, the promotion returned in April with major changes, including a six-to-eight-week run, tiered pricing from $24.99 to $29.99, five specific shrimp options, and dine-in only. Customers begin with three dishes and can order up to two more at a time. Visits increased more than 18 percent since the promotion began, and economic outcomes are viewed positively, though permanence is undecided.
"Kitchen workers were overwhelmed preparing mountains of shrimp while other orders sat getting cold. Servers had to become “shrimp police,” counting shrimp and ensuring plates were completely empty before refills."
"The promotion had been a hit for over 20 years, but when former owners ran it continuously in 2024, it sank profits and helped drive the chain into bankruptcy. After months of planning, Red Lobster relaunched it in April with major changes: a six-to-eight-week run instead of continuous, tiered pricing of $24.99 to $29.99, five specific shrimp options, and dine-in only."
"Customers start with three dishes and can order up to two more at a time. The new approach is showing results. Visits to Red Lobster locations jumped more than 18 percent since the promotion began, according to Placer.ai."
"Konecny says the company is “happy with economic outcomes” but hasn't decided if Endless Shrimp will return permanently after the current run ends."
#red-lobster #endless-shrimp-promotion #restaurant-operations #pricing-strategy #bankruptcy-turnaround
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