Red Lobster - Endless Shrimp over, you go home now

[Wagerallsports]

https://twitter.com/i/web/status/1793142811350683960

 

[BobbyFK]

last time i went to one was for a take out some yrs ago and it was not very good, bonefish grille is a lot better imo

I've never tried bonefish grill. Is it comparable to Red lobster?

 

[Wagerallsports]

https://twitter.com/i/web/status/1793416952645595230

 

[djefferis]

Red Lobster failing for same reasons Sears and so many other “legacy” brands failed - greed and stupid management.

Reading the story on the flight home - when Darden dumped them in 2014 (as seafood was a low margin business and unpredictable) - Thai Union was there and ready to pounce - and why not - Thai Union is a seafood giant (owns a good portion of corporate seafood production and brands like Chicken of The Sea).

But to make the numbers work of course they started by selling off all the real estate they owned and leasing it back at high rates. Works great until someone goes belly up - REIT holds the land and pays a high dividend to shareholders and brands maintain key pieces while not being burdened with excessive capital commitment.

But that wasn’t all - Thai Union saw no need to maintain relationships with multiple suppliers - after all - they could supply their own needs and guarantee a profit stream. No need to play nice with multiple suppliers - just get high off your own supply. Of course - when there’s no competition- prices shot up.

Finally - COVID and then roller coaster that followed crushed them. Going from no one eating out to EVERYONE wanting to eat out and no one wanting to wait tables/cook when relief funds came available - it made things tight. Worse - as food prices soared - the place doubled down on cost controls - pissing off the people who WOULD pay $30 for a chain restaurant meal.

Unlimited shrimp was the final straw - they were desperate to make the place look busy - while having half staff working. Like Sears they tried to “out price” the competition - knowing it couldn’t last long - but as long as the executives had time to pack their parachutes before bailing - that’s all the time they needed. Guess it worked - again.