Red Lobster Ends Promo After It Hurt Earnings

Red Lobster, a well-known seafood restaurant chain, is facing financial trouble as Thai Union Group, one of its minority investors, announced its intention to exit the company in January. Thai Union cited a massive $22 million loss from Red Lobster across the entirety of 2023, due to various factors such as the Covid-19 pandemic, high interest rates, and rising costs.

In light of these financial challenges, Red Lobster has launched a new promotion, offering 150 lucky winners a chance to experience an "Endless Lobster Experience." The winners will be treated to a two-hour feast of unlimited lobster, two sides, and Red Lobster's famous Cheddar Bay Biscuits. This event is in celebration of Red Lobster's annual Lobsterfest, which has been a tradition at the restaurant since 1984.

However, this is not the first time that Red Lobster has offered an all-you-can-eat deal. In June 2023, the restaurant chain introduced its "Ultimate Endless Shrimp" deal, which proved to be immensely popular among customers. Despite raising the price from $20 to $25, the deal resulted in a massive $11 million operating loss for Red Lobster in the third quarter of 2023. This loss has had a significant impact on the company's finances and may have contributed to Thai Union's decision to exit the business.

Thai Union Group's CEO, Thiraphong Chansiri, confirmed that the company is currently in the process of selling its stake in Red Lobster. He also stated that the sale could take anywhere from three to four months and that they do not expect to make much profit from it. Chansiri also mentioned that he will no longer be eating lobster in support of the company, stating, "Other people stop eating beef, I'm going to stop eating lobster."

While Thai Union looks for potential buyers, Red Lobster is moving forward with its annual Lobsterfest celebration. The event offers a variety of lobster dishes, including 10 limited-edition menu items, with five new options like the Crispy Lobster & Shrimp Stack and the Lobster Lover's Duo.

To add to the excitement of Lobsterfest, Red Lobster is also offering the chance to win the Endless Lobster Experience through its social media channels. Fans can participate in the promotion by following Red Lobster on Facebook, X, Instagram, and TikTok. The winners will be announced on a first-come, first-served basis, while supplies last.

However, the Endless Lobster Experience also comes with a caveat. The winners can enjoy a maximum of 12 one-and-one-fourth pound Maine lobsters. Once they have reached this limit, they will be offered a choice between Maine lobster tails or Caribbean Rock lobster tails. While all the food will be provided free of cost, the winners will have to pay for their beverages, tax, and gratuity.

Red Lobster's annual Lobsterfest and the Endless Lobster Experience promotion come at a tumultuous time for the company. The decision to offer an all-you-can-eat deal again is a bold move that speaks to Red Lobster's determination to attract customers and boost its sales.

It remains to be seen how successful this strategy will be in the face of its current financial challenges and the impending sale by its minority investors. One thing is for sure; the winners of the Endless Lobster Experience are in for a treat, and Red Lobster hopes that this promotion will bring positive results for the company.