Red Lobster likely closing more restaurants after shuttering 130: CEO

Red Lobster likely closing more restaurants after shuttering 130: CEO

Red Lobster is contemplating closing more areas because it continues to reevaluate its restaurant footprint in the wake of its 2024 chapter.

The seafood chain shuttered roughly 130 restaurants when it went by means of the chapter course of and Red Lobster CEO Damola Adamolekun told The Wall Street Journal in an interview that the company is constant to review its areas and leases because it considers methods to curb prices.

Adamolekun said in the interview that visits have risen, with sales up about 10% from last yr, however they haven’t recovered to pre-bankruptcy ranges, and many of the chain’s areas want upgrades.

“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,” he told the Journal.

Red Lobster filed for chapter in May 2024 after it racked up steep losses amid diminished sales and losses generated from an infinite shrimp deal that was initially priced at $20. 

The company is also coping with the fallout from a 2014 transfer that offered off possession of the chain’s real property and saddled the company with lease funds. 

Some of those leases contain a number of restaurants, which Adamolekun said has made it troublesome to shut some poorly performing areas because their lease is linked with greater performing ones.

Red Lobster CEO Damola Adamolekun told The Wall Street Journal that the restaurant chain will likely shut more areas in the wake of its 2024 chapter. ABC by way of Getty Images

The Journal reported that people acquainted with the company’s discussions said Red Lobster would ideally have dozens fewer restaurants in its portfolio so that it may give attention to higher-performing areas.

Adamolekun was employed as CEO by the chain’s new possession in August 2024 after he led a restructuring effort at P.F. Chang’s. 

The company has minimize roughly 10% of its company workers in current months and the Journal’s report famous that Red Lobster is negotiating with seafood distributors as tariffs have pushed the prices of imported seafood greater.

During the chapter course of, roughly 130 restaurants closed as the company will decide methods to chop prices. Christopher Sadowski

Adamolekun told the Journal that as soon as the company has handled struggling areas, Red Lobster may look to increase in upstate New York and New England, the place it has a restricted presence. 

He’s also contemplating franchise offers for worldwide areas in addition to promoting more Red Lobster-branded merchandise, like Cheddar Bay Biscuit mixes, by means of retail channels.

FOX Business reached out to Red Lobster for remark.

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