Founded in 1968, Red Lobster brought seafood to landlocked people at more affordable prices than fine-dining restaurants. In 2024, the debt-laden seafood chain announced it was considering filing for Chapter 11 bankruptcy protection. Red Lobster was bogged down by increased labor costs and expensive leases on its restaurants. Some of the financial woes are due to its decision in 2023 to make its “Endless Shrimp” promotion, which used to be an occasional, limited-time offering, permanent.
Red Lobster wasn’t losing to a competitor in their space — they’re were losing to competitors outside their space. People who are hankering for lobster or fish are increasingly going to steak houses that offer those options.
