Red Lobster is trying to change the tides in its post-bankruptcy era. In May, the casual seafood dining chain filed for Chapter 11 bankruptcy after closing dozens of restaurants, which gave it time to address “several financial and operational challenges,” its former CEO Jonathan Tibus said in a statement.
One of the major blunders made by Red Lobster was its $20 endless shrimp promotion. While the deal made quite the splash with customers, the company suffered millions in operating losses. And Red Lobster’s new CEO, Damola Adamolekun, warned customers not to hold their breath for the promotion to make a comeback.
It’s “because I know how to do math,” Adamolekun told TODAY in an interview on Monday. Red Lobster did not immediately respond to Fortune’s request for further comment.
@ugh_madison I could only stay for 4 and half hours but i think I got my $27 worth. I wish i had 2 crab cakes and 3 lemon drops to go with my red lobster endless shrimp! #redlobster #champion ♬ original sound – ugh madison
At just 35 years old, Adamolekun was also named to Fortune’s inaugural 100 Most Powerful People list published this week, which is based on the size and health of the business, innovation, influence, trajectory, and impact. Adamolekun, who ranks No. 89 on the list, has always been completely dedicated to his career.
“My life is my work. My work is my life,” he told Fortune in 2023 when he was CEO of Asian-fusion restaurant chain P.F. Chang’s.
@fortune Red Lobster’s new CEO told Fortune in 2023 that he doesn’t believe in work-life balance. #redlobster #redlobsterrestaurant #food #foodtok #ceo #worklife #worklifebalance #routine #balance #wlb #advice #leadershipadvice #fortune #interview #csuite #news #businessnews #success #successtok #successtips #successstory ♬ original sound – Fortune Magazine
This summer was Adamolekun’s chance to take on a new challenge. He became chief executive of Red Lobster in August, just months after the company filed for bankruptcy. While the endless-shrimp debacle surely didn’t do any favors for the food chain, Adamolekun admits it wasn’t the only trouble the company faced.
“This wasn’t a one decision that led us, the company, to bankruptcy,” Adamolekun told TODAY. “I think fundamentally, when a company is successful, it’s important to remember what made them successful.”
Since taking the helm at Red Lobster, Adamolekun has committed to controlling the crustacean chaos caused by the endless shrimp fiasco by doing exactly what he referred to: going back to what made the company successful in the first place.
“This is, without exaggeration, one of the most important companies in American history,” Adamolekun told CNN. “There were certainly big mistakes made over the last few years.”
What Adamolekun is doing to revive Red Lobster
Adamolekun is behind a $60 million plan to keep the seafood chain from drowning again and has started stacking his C-suite with restaurant-industry veterans. His vision is to “inject more energy” into the restaurant locations, Adamolekun told TODAY, through new lighting, music, and decor. This is all in an effort to improve and renovate current restaurant locations, which also involves fixing broken HVAC systems, torn carpets and chairs, and ensuring more sites don’t close in the future—impact that should be felt “right away,” he told CNN in October. Currently, there are 545 Red Lobster locations.
“We expect to feel like you’re being transported somewhere new,” he told TODAY.
Adamolekun also said he wants to “lower the check” for customers, making it more affordable to dine at Red Lobster. “We should be the best deal for the best lobster because we do have the best product,” Adamolekun told TODAY.
While Adamolekun had previously mentioned truncating the menu to make the company more financially and operationally sound—and also help out frontline workers like servers and cooks—he revealed this week some new and reintroduced items to the lineup.
One menu item’s comeback is expected to buoy interest in the restaurant chain: hush puppies, which will return with new items like bacon-wrapped sea scallops, lobster bisque, lobster pappardelle pasta, grilled mahi, and parmesan-crusted chicken. Still, some items will be removed, causing a 20% reduction in menu items, Adamolekun said.
“There was a social-media riot over us taking off the hush puppies a few years ago,” Adamolekun told TODAY. “So that is coming back. I expect to stampede into our restaurants because we’re bringing back the hush puppies.”
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