Red Lobster Stages a Surprising Comeback After Bankruptcy
Red Lobster may have filed for bankruptcy in 2024. However, under the leadership of new CEO Damola Adamolekun, the seafood chain is staging a calculated, and surprisingly effective, comeback.
Since emerging from bankruptcy in September, Red Lobster has introduced revamped menu items like lobster pappardelle pasta and bacon-wrapped scallops, brought back fan-favorite hush puppies and popcorn shrimp, and doubled down on what diners already love: cheddar bay biscuits and real hospitality.
It's a back-to-basics approach with a modern twist, and diners are responding.
Online reviews have seen a notable improvement, according to Adamolekun, who credits a renewed focus on service. "If a guest wants to use the bathroom, you escort them—you don't point," he said in an interview with Bloomberg.
Once a destination for graduation dinners and special nights out, Red Lobster had fallen hard—hit by high labor costs and a money-losing unlimited shrimp promotion.
That endless shrimp deal may not be making a return anytime soon, but a $19.99 "shrimp sensation" special is gaining traction. Add in $5 happy hour deals and daily "value offerings," and Red Lobster is showing it understands the post-inflation customer.
Adamolekun, 36, previously helped turn around P.F. Chang's.
He's now betting big again—this time with plans to remodel all 545 Red Lobster locations. He says the redesigned restaurants will be "energetic, vibrant, inviting, warm," with an eye toward creating photo-friendly spaces that appeal to a younger crowd.
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Renovations will run around $500,000 per store and are expected to roll out over the next four to five years, starting with a flagship in Atlanta.
Red Lobster is also investing in ads, sports sponsorships, and a stronger social media presence—all part of a broader strategy to bring diners back through the door.
If early signs are any indication, the chain may be clawing its way back to relevance, complete with the best cheddar bay biscuits in the game.
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