THE CEO of Red Lobster has announced a huge menu shakeup that focuses on nostalgia – just months after it clawed itself out of bankruptcy.
The iconic US chain is looking to its past to help secure its future.
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Red Lobster’s CEO Damola Adamolekun gave fans of the chain hope that things would turn around.
He appeared on the radio show The Breakfast Club in New York to reveal how he plans to revitalize Red Lobster, reported by USA Today.
Adamolekun explained: “If you want lobster and you want it for $20, we’ve got the lobster roll for that price in certain markets.
“At the same time, value is what you get for the price.
“If the hospitality is way better, the food is more interesting, the drinks are fun, and you pay the same price for all of that; people are going to perceive it as value.”
He went on to heap praise on the company and reminisce on his early memories visiting there.
It was made clear that Adamolekun wants to bring his sense of nostalgic wonder back to Red Lobster.
The CEO continued: “I’ve been a Red Lobster fan since my first dining experience as a 9-year-old at our Springfield, Illinois, restaurant.
“And as I’ve prepared to step into the role of CEO, ‘ve met hundreds of diners across the country who, just like me, are as passionate about Red Lobster now as they were on their first visit.
“Red Lobster has a tremendous future, and I cannot wait to get started on our plan with the company’s more than 30,000 team members across the USA and Canada.
“The lobster you get at Red Lobster is as good as lobster you’ll get anywhere, but people don’t know that.
“There’s a communications aspect. We need to let people know this is the best product you can get.”
Adamolekun also said Red Lobster locations could benefit from upgrades to the interior, which is being worked on.
WHO IS THE NEW CEO?
Damola Adamolekun, 36, became the first Black CEO of the Asian restaurant chain P.F. Chang’s in 2020.
The Nigerian-born chief stayed there until December 2023, and is credited with navigating the chain through COVID-19 lockdowns and returning it to growth.
Before that, he was the chief strategy officer at P.F Chang’s.
He previously worked for the investment banking division of Goldman Sachs and as a private equity associate at TPG Capital.
Timeline leading to Red Lobster’s financial woes
Red Lobster has been a staple in the United States ever since its launch in 1968. But the business has recently been hit with financial troubles and it is now reportedly considering filing for bankruptcy.
1968: Bill Darden opened the first Red Lobster as a family-owned restaurant in Lakeland, Florida.
1970: Red Lobster caught the attention of General Mills and became backed by their resources. Stores start to rapidly open across the nation
1974: Popcorn shrimp debuts
1983: Red Lobster’s first Canadian restaurant opens
1984: Chain hosts its first-ever Lobster Fest
1992: Famous Cheddar Bay Biscuits are unveiled for the first time
1995: General Mills creates a spin-off of its restaurant division, known as Darden Restaurants, Inc.
2003: The yearly tradition of Endless Shrimp starts
2006: “Today’s Fresh Fish” menu makes its debut, bringing fresh, regional seafood to Red Lobsters everywhere
2010: Red Lobsters everywhere see an interior makeover inspired by the historic fishing village of Bar Harbor, Maine.
2014: Darden Restaurants, Inc. sells Red Lobster to Golden Golden Gate Capital for $1.2 billion.
2016: Thai Union Group pays $575 million for a 25% stake in the chain.
2020: Thai Union Group purchases a 49% majority stake in the chain from Golden Golden Gate Capital for an undisclosed amount of money and Red Lobster reports record-breaking profits, pulling in $6.5 billion for the year.
2023: Endless Shrimp becomes a permanent part of the menu
2024: Red Lobster announces a $22 million loss for 2023, majority shareholder Thai Union Group announces it is looking to sell its shares. Red Lobster filed for Chapter 11 Bankruptcy in May.
Red Lobster has been able to save itself through more than $60 million of financier backing, which has allowed it to form a long-term business plan.
This is a stark contrast to the situation it was in less than a year ago.
In May 2024, Red Lobster filed for Chapter 11 bankruptcy due to massive debt problems, causing them to shutter more than 90 spots.
But it was saved by Fortress Investment Group LLC, which appointed Adamolekun as CEO.
The company is said to have mainly suffered as a result of COVID-19.
Since 2019, guest count declined by 30% and recovered “only marginally” as the pandemic eased off.
However, former Red Lobster chief executive officer Jonathan Tibus said the chain’s “Ultimate Endless Shrimp” promotion resulted in an $11 million loss for the company.
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