Cheddar Bay Biscuits, Anyone?

Red Lobster is bringing back the feels, thrills, and the business strategy to match

When was the last time you visited Red Lobster? Were you celebrating a birthday or an anniversary? It may have been for date night. Or, an outing with friends? What brought you there?

And whatever brought you back, whether it was for the basket of Cheddar Bay Biscuits, the garlic shrimp scampi or a lobster meal, the seafood chain is making a comeback.

The chain was bleeding money for years. Red Lobster lost $76 million in 2023, causing dozens of its North American restaurants to shut down, leading to Chapter 11 bankruptcy protection in 2024.

According to the Associated Press,

“Aaron Allen, the founder of restaurant consulting firm Aaron Allen & Associates, said the bankruptcy was the culmination of two decades of trouble at Red Lobster, which has struggled with increasing competition from faster, cheaper chains like Chipotle and Panera.

Sometimes, Red Lobster would lower its prices to compete, a move that was often disastrous. In 2003, the company lost millions of dollars on an all-you-can-eat “Endless Crab” promotion when crab prices rose, Allen said. Twenty years later, the chain did the same thing with an “Ultimate Endless Shrimp” promotion. The fact that they would have this kind of corporate amnesia is a fascinating case study in corporate food service,” Allen said.”

Where’s the lie? If we’re honest, the chain’s endless promotions were bound to cause problems, which led to the bankruptcy.