New Red Lobster CEO promises diners can kiss goodbye controversial $20 ‘endless’ combo after chain closes 48 locations

RED Lobster’s new CEO, Damola Adamolekun, is poised to make significant changes to the seafood chain, including the end of its controversial $20 "endless shrimp" deal.

This announcement comes in the wake of Red Lobster's recent financial struggles, which saw the closure of 48 locations as part of its bankruptcy proceedings.

Adamolekun, 35, was appointed by Red Lobster’s lenders to lead the company through its bankruptcy and turnaround process.

He has made it clear that the $20 "endless shrimp" promotion will not be making a return, according to an interview with The Wall Street Journal.

Launched last year in an attempt to attract customers, the promotion instead led to substantial losses and contributed to the chain's financial difficulties.

“We will never do that again in the way it was done,” Adamolekun stated, per the outlet, emphasizing that while promotions may still be on the table, they will be approached differently.

The decision reflects a broader strategy to refine Red Lobster’s approach to promotions and pricing.

STRATEGIC OVERHAUL

Adamolekun, known for his successful turnaround of P.F. Chang’s, is now focusing on revamping Red Lobster.

The chain is set to invest approximately $70 million into improvements.

This will include updating restaurants and refining the menu.

His plan involves simplifying operations, enhancing food quality, and creating a more inviting dining experience that aligns with the brand’s New England-inspired roots, according to WSJ.

The recent bankruptcy and closure of 48 locations have placed Red Lobster under significant scrutiny.

Adamolekun, who previously helped turnaround P.F. Chang’s, is no stranger to reviving struggling brands.

He plans to replicate his success at Red Lobster by focusing on operational improvements, restaurant updates, and enhancing both food quality and employee environment

Adamolekun’s strategy is directed at restoring the chain’s profitability and relevance in a competitive market.

NEW DIRECTIONS

With a background in finance and a track record of successful brand turnarounds, Adamolekun is implementing a clear, strategic plan to address Red Lobster’s challenges, WSJ reported.

We will never do that again in the way it was done.

Red Lobster plans to invest around $70 million in restaurant improvements, and under Adamolekun’s leadership, it is striving to provide customers with quality food in a comfortable setting while honoring the brand’s heritage.

His goal is to cater to fans’ nostalgia with affordable, New England-inspired dining that captures the essence of Red Lobster’s history.

By moving away from the controversial shrimp promotion and focusing on operational excellence and improved customer experiences, he aims to guide the chain back to stability and success.

“The story isn’t done yet,” Adamolekun pointed out to the outlet, signaling a hopeful future for Red Lobster as it navigates through its current challenges and strives to reconnect with its customer base.

In other closure news, Dollar General addressed its economic performance during its second-quarter earnings call, highlighting the challenges it encountered.

Plus, Macy's is strategically adapting to the challenging retail environment by revamping its product mix, focusing on operational improvements, and closing over 50 additional stores.