topic Re: real reason Red Lobster closing stores in Community Chat

real reason Red Lobster closing stores

chessygal — Thu, 16 May 2024 15:46:19 GMT

Here it is:

Before divesting from Red Lobster, Thai Union Group attributed the company's decision to make its "Ultimate Endless Shrimp" promotion a permanent offer as a "key factor" in its ongoing financial difficulties.

While the shrimp promotion increased traffic to the chain by 4 percent, as reported by Restaurant Business, it contributed to the $11 million in losses reported by the company in the third quarter of 2023.

According to Restaurant Business, Union Group's CFO Ludovic Regis Henri Garnier, **LINK REMOVED** while speaking to investors in November 2023: "We knew the price was cheap, but the idea was to bring more traffic to the restaurants. So we wanted to boost our traffic, and it didn't work."

It sounds like what JC Penney did when they got rid of their coupons and sales dropped.

Re: real reason Red Lobster closing stores

beckyb1012 — Thu, 16 May 2024 15:15:33 GMT

Ours closed this week and this past Friday I had dinner in my cart and just decided at the last minute not to do Red Lobster takeout. I wish I had followed through.

I drive by there every evening on my way home from work and on Tuesday there were a few people and a camera crew in the parking lot. This morning I heard on our local news it was the employees being interviewed about being locked out and not told of the closing of the restaurant. So sad to come to work and find you have no job.

Re: real reason Red Lobster closing stores

lynnie61 — Thu, 16 May 2024 15:41:26 GMT

News showing customers eating 40-50-60 shrimp. One news program showed one guy on the 31st entree or appetizer. Not pieces of shrimp, his count of entrees or appetizers. Just ridiculous.

I work part time at a restaurant that gives free refills on pop and lemonade. One customer had six strawberry lemonades. The cups I believe are 18 oz. You would have to be sick after consuming that much sugared lemonade and your entree. Then asked for his 7th refill to be to go. Ick. We all like a good value......but, this is just crazy.

Re: real reason Red Lobster closing stores

PilatesLover — Thu, 16 May 2024 15:56:02 GMT

I ate at a RL once and would never repeat the experience. We live in New England, how could we possibly have needed a Red Lobster chain restaurant around here? LOL

It was so gross. When they were carrying our plates to the table I could smell that the fish was on its way to spoiled. The lettuce in the salads was literally black around the edges. The only edible thing were those biscuit-y things. I told them to take it back and we left it was so bad, and we're not the type of people who are mean to wait staff or cause a big to-do in restaurants. The smell was that bad.

Re: real reason Red Lobster closing stores

Estellee — Thu, 16 May 2024 15:57:39 GMT

I havn't been there in over 10 years but I always remember those biscuits they brought to the table.

Re: real reason Red Lobster closing stores

hopi — Thu, 16 May 2024 16:00:13 GMT

Ate a couple of times at Red Lobster many many years ago. The food was awful.

You get what you pay for and all you can eat doesn't make it taste good.

Re: real reason Red Lobster closing stores

cindyNC — Thu, 16 May 2024 16:09:03 GMT

@lynnie61 I had a friend who used to go out with her neighbors to Taco Bell occasionally.

She was very cheap. She would order a $1 taco and a cup of water. Then she would use most of the sliced lemons on the drink bar in her water to make lemonade. Eventually they started charging her for the cup for her water........she was miffed. I got a chuckle out of it and thought she got what she deserved.

Re: real reason Red Lobster closing stores

Alsace Gal — Thu, 16 May 2024 16:38:56 GMT

@Estellee wrote:
I havn't been there in over 10 years but I always remember those biscuits they brought to the table.

I have a box of them, you can find them at Safeway, they're easy to mix and bake, better still, they taste exactly like the ones you get in their restaurants.

Re: real reason Red Lobster closing stores

SoCal Bred — Thu, 16 May 2024 21:08:01 GMT

I did hear that the 'Ultimate Endless Shrimp' all you can eat promotion last year is what did them in. My hubby loves Red Lobster, me, not so much. It's not the same as it was 10 years ago, since the pandemic the quality of the food and the service has really gone down, I am speaking about the location that we go to.

Re: real reason Red Lobster closing stores

Tissyanne — Thu, 16 May 2024 16:49:52 GMT

Our Red Lobster in my city (west TX) is very good. We have eaten the endless shrimp several times, and always had a good experience. The baked potatoes are delicious. The biscuits are good, and they bring out a sack of fresh ones for us to take home.

I hope the one here stays open.

Re: real reason Red Lobster closing stores

CANDLEQUEEN — Thu, 16 May 2024 18:19:48 GMT

Our Red Lobster here is not closing, it looked very busy on Mother's Day! However I haven't eaten there for several years, since my Mom wanted to go there. It was good though and the service was also good.

I did hear that right after Covid, ours was only open several days a week in the evenings only, because they couldn't find enough workers.

It seems to be doing much better now and I sincerely hope it doesn't close, as we need more restaurants in our town.

Re: real reason Red Lobster closing stores

lynnie61 — Thu, 16 May 2024 18:38:12 GMT

@cindyNC Dont even get me started on making lemonade, or asking for bunches of Splenda so they can take home and not purchase it themselves. Ask for extra jelly packs, and didn't have toast! I order water most times in restaurants but not because I'm cheap, just a better option to drink more water.

My dad and his lady friend always went out with a couple that did the water/lemons/sugar in even nicer restaurants. My dad said enough, and no longer wanted to eat out with them. Use their phone to calculate 10-15 % not a penny more. Always asked for extra sauce, rolls, butter, anything that might be free.

I have purchased the biscuit mix in the grocery store. Very good!

Re: real reason Red Lobster closing stores

debfau — Thu, 16 May 2024 19:07:16 GMT

@SoCal Bred wrote:
I did hear that the 'Ultimate Endless Shrimp' all you can eat promotion last year is what did them in. My hubby loves Red Lobster, me, not so much. It's the not the same as it was 10 years ago, since the pandemic the quality of the food and the service has really gone down, I am speaking about the location that we go to.

In 2014 is when Darden sold RL to Golden Gate Capital because RL was lossing money at that time.

Re: real reason Red Lobster closing stores

Kachina624 — Thu, 16 May 2024 19:31:24 GMT

@chessygal wrote:
Here it is:

Before divesting from Red Lobster, Thai Union Group attributed the company's decision to make its "Ultimate Endless Shrimp" promotion a permanent offer as a "key factor" in its ongoing financial difficulties.
While the shrimp promotion increased traffic to the chain by 4 percent, as reported by Restaurant Business, it contributed to the $11 million in losses reported by the company in the third quarter of 2023.
According to Restaurant Business, Union Group's CFO Ludovic Regis Henri Garnier, **LINK REMOVED** while speaking to investors in November 2023: "We knew the price was cheap, but the idea was to bring more traffic to the restaurants. So we wanted to boost our traffic, and it didn't work."

It sounds like what JC Penney did when they got rid of their coupons and sales dropped.

@chessygal. I don't know why this is news now. It was widely reported and I wrote a thread on the subject last December.

https://community.qvc.com/t5/Community-Chat/Has-Endless-Shrimp-Ended/td-p/8237677#M2009311

Seems as though simple math and a little knowledge of the nature of their customer could have prevented the fiasco.

Re: real reason Red Lobster closing stores

1Snickers — Thu, 16 May 2024 19:35:51 GMT

The Red Lobster in Williamsburg, VA closed Monday. My son had ordered takeout for Mother's Day and bought a special promotion gift card for Mother's Day. He only used a part of it.
The one in the next city closed. The only one open is 40 miles away. Takeout would be cold! The card he purchased is useless. AND they forgot our biscuits!
🍽️ - 🥐 = ☹️-💳=😢😩

Re: real reason Red Lobster closing stores

SharkE — Thu, 16 May 2024 19:54:00 GMT

Yeah, those people on TV are disgusting.

Fattening hogs. put 'em on all fours. ROFL

Re: real reason Red Lobster closing stores

They CallMe MRWILKES — Thu, 16 May 2024 19:54:59 GMT

This story has reappeared in a number of local news outlets because locations suddenly closed earlier this week, 14 across New York and New Jersey.

The large Times Square location is still open.

Re: real reason Red Lobster closing stores

beckyb1012 — Thu, 16 May 2024 19:58:04 GMT

@lynnie61 wrote:
@cindyNC Dont even get me started on making lemonade, or asking for bunches of Splenda so they can take home and not purchase it themselves. Ask for extra jelly packs, and didn't have toast! I order water most times in restaurants but not because I'm cheap, just a better option to drink more water.

My dad and his lady friend always went out with a couple that did the water/lemons/sugar in even nicer restaurants. My dad said enough, and no longer wanted to eat out with them. Use their phone to calculate 10-15 % not a penny more. Always asked for extra sauce, rolls, butter, anything that might be free.
I have purchased the biscuit mix in the grocery store. Very good!

I have so wondered about that, now I guess I will have to try it. I always order water too, but it is because I am dirt cheap. Drives me crazy when I buy my children and grandchildren lunch/dinner and pay for all that soda. Oh well it is worth it we have fun.

Re: real reason Red Lobster closing stores

Sooner — Thu, 16 May 2024 20:01:21 GMT

Lots of restaurants will close because with many of the new "living wage" minimum wages they can't afford to hire staff. People won't have a living wage, but they won't have a job either. So what is accomplished?

So now no extra jobs, jobs for teens, etc. and the food is not too expensive for others to eat out.

Re: real reason Red Lobster closing stores

Group 5 minus 1 — Thu, 16 May 2024 20:04:45 GMT

Years ago,I lived in a town that had a University and a Red Lobster. When RL had those promotions I liked to take advantage. But,the frat houses would also attend and eat and eat.

I can see why they are closing stores.