Red Lobster is in the news once more with a fresh shrimp offer, but this time the seafood restaurant is being decidedly more guarded after its notorious “endless shrimp” promotion backfired in a tremendous manner.
On Sept. 8, the chain unveiled its new limited-time “SpendLESS Shrimp” promotion, which allows customers to have three varieties of shrimp on one plate for $15.99. The promotion is framed as a more affordable replacement for the all-you-can-eat endless shrimp promotion that cost Red Lobster $11 million and helped push it into Chapter 11 bankruptcy in May 2024.
Unlike the previous unlimited promotion, which allowed for unlimited shrimp to be eaten for $20, the new promotion is limited, with Garlic Shrimp Scampi, Shrimp Linguini Alfredo, and Popcorn Shrimp all on one plate.
“Since taking this position, I’ve received inquiries about Endless Shrimp – ‘Is it returning?’ ‘What actually transpired with the promotion?’ ‘How much shrimp is too much shrimp?’ And it’s time we officially turn the tides,” Red Lobster CEO Damola Adamolekun remarked in a press release. “It might not be endless, but you’ll certainly spend less.”
The breezy marketing strategy emphasizes how Red Lobster is attempting to look ahead following a bumpy year.
Endless shrimp and bankruptcy fallout
The notorious endless shrimp offer was a cautionary tale in the restaurant world. Former CEO Paul Kenny made the choice to continue offering unlimited shrimp as a standing $20 menu item, overruling other executives’ opposition, as outlined in bankruptcy filings.
That action, which was outlined in exhaustive detail in a 124-page court document, left the chain millions of dollars in direct losses and put serious pressure on its supply deals with Thai Union, its investor and main shrimp supplier.
Previous CEO Jonathan Tibus laid out in court documents how the promotion not only hurt margins but also left the company with “onerous supply commitments.” The $11 million loss was one of many factors, such as escalating debt, leadership changes, and a 30% drop in guests since 2019.
By May 2024, Red Lobster had filed for Chapter 11 bankruptcy in the Middle District of Florida, pointing to the shrimp deal as a prime example of mismanagement.
New menu moves to win back diners
Aside from rolling out the SpendLESS Shrimp deal, Red Lobster is also adding new permanent items to its menu. The company confirmed that its Seafood Boils, which were introduced in June as a limited-time item, will now be on offer year-round.
The Mariner’s Boil includes a Maine lobster tail, a dozen shrimp, snow crab legs, corn, and red potatoes, finished with a choice of roasted garlic butter, Cajun butter, or Old Bay seasoning. The Sailor’s Boil features shrimp, smoked sausage, corn, and red potatoes.
Red Lobster is also leaning into seasonal dining trends with a lineup of fall-inspired cocktails:
Caramel Dream: Absolut Vodka, butterscotch, caramel, and cream, topped with a sea salt chocolate caramel.
Apple Harvest Punch: Captain Morgan Spiced Rum, cranberry, lemon, and apple juice, garnished with an apple slice and cinnamon stick.
Gold Rush: Maker’s Mark Bourbon, honey, and sparkling gold shimmer, topped with fresh mint.
A brand at a crossroads
Although the new promotions will not completely cancel out the losses of the past, they reflect Red Lobster’s effort to regain customers while steering clear of the missteps that sent it into bankruptcy.
By moving away from “endless” gimmicks to thoughtfully priced promotions such as SpendLESS Shrimp, Red Lobster seems determined to rebuild fiscal steadiness without sacrificing the lighthearted, overindulgent nature that has characterized the chain for decades.
If the new strategy will catch on with customers and secure the future of the brand is yet to be determined, but one thing is certain: Red Lobster wouldn’t mind another “endless” flop on its plate.
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