Red Lobster to shutdown its oldest location after company's financial struggles
A Red Lobster restaurant in Alexandria, Virginia, US, on Friday, June 7, 2024. Seafood restaurant chain Red Lobster, which filed for bankruptcy last month, will be in bankruptcy court on June 14. Photographer: Ting Shen/Bloomberg via Getty Images
The financial struggles of seafood restaurant Red Lobster have led to the company shutting down their longest-standing location.
According to the Tallahassee Democrat, the chain’s longest-serving location in the Florida capital will be closing this month after 56 years.
Tallahassee to close their Red Lobster
The location’s manager confirmed to the Tallahassee Democrat the final day for the restaurant is on Sunday, May 24.
Originally opening in October 1970, the location managed to avoid the list of 17 storefronts to close in Florida in 2024 when the company ran into their much publicized financial woes.
The backstory:
In 2024, Red Lobster filed for Chapter 11 after mounting losses from the fallout of their $20 "Endless Shrimp" that was made a permanent part of the menu. About 130 locations were closed because of the bankruptcy, according to the Wall Street Journal.
While the promotion did help drive traffic, the high demand strained supply and the company reported $11 million in losses in a single quarter.
A new CEO eyes a rebuild
What's next:
New Chief Executive Officer, Damola Adamolekun came in to lead a turnaround and bring the company from the brink of collapse. With the addition of $60 million from investors, the seafood restaurant decided to reduce their footprint and opt for a full revamp.
Bloomberg reported they trimmed their menu by about 20%, introduced new items and began to roll out a new in-restaurant experience.
What they're saying:
Adamolekun said at the time they were assessing other location leases and more closures were possible.
"There's a lot of positive signs, but we inherited a very damaged brand, so there's still work to do to repair all of that," Adamolekun told the Journal at the time.
Big picture view:
As part of the Darden group, The Journal reported Red Lobster has laid off about 10% of their corporate staff in recent months. Currently, they have about 480 locations remaining.
The Source: This story was written with information provided by the Tallahassee Democrat and FOX News. This story was reported from Orlando.