By Daily Mail (U.S.) | Created at 2024-11-15 16:49:49 | Updated at 2024-11-22 08:45:46
6 days ago
Red Lobster CEO Damola Adamolekun made it clear the restaurant chain will not bring back its endless shrimp deal again.
Adamolekun, 35, snarkily revealed the reason he won't ever resurrect the ill-fated deal is that he 'knows how to do math.'
He became Red Lobster's new CEO in August after the company exited Chapter 11 bankruptcy four months after filing after garnering $300 million in debt - $21 million from the shrimp alone.
Taking to Reddit after the new CEO's recent comments, several Red Lobster fans claimed they would no longer eat at any of the chain's locations because the endless shrimp was gone for good.
'Much like endless shrimp, I am also never coming back,' a Reddit user wrote.
Ending the financially draining promotional was one of many changes Red Lobster implemented to get back on track financially.
'Relevant, compelling and exciting is what we want Red Lobster to be for the future, and so we’re working on that now,' Adamolekun told TODAY this week.
Red Lobster CEO Damola Adamolekun is not planning on bringing back the endless shrimp deal anytime soon because he ' knows how to do math'
Some Reddit users were intrigued by what Adamolekun will do as Red Lobster's CEO, but it has not stopped them from slamming the restaurant chain.
'I haven't read the article yet, but I’ve watched a bunch of videos where D.A. talks about his role as CEO. He genuinely seems like a decent CEO,' a Reddit user wrote.
'Let’s be real tho— anyone who's worked in food service knows that Endless Shrimp(depending on establish anything seafood) is a financial disaster waiting to happen.'
And while the endless shrimp deal was ultimately the final blow before bankruptcy, other Redditos chimed in on how the company's private equity Golden Gate Capital, which bought the chain in 2014, it sold all its real estate assets for $1.5 billion.
One person wrote: 'He can do all the math he wants, but that doesn't do him any good when he doesn't do any research on what actually happened with the private equity bulls**t.
'I know math, I have the best math. They tell you that you can have endless shrimp... It's horrible what endless shrimp have done to this company,' another customer wrote.
'He turned around PF Chang before joining RL. Sounds like a bigger challenge though,' a Reddit user said of Adamolekun's ability to lead.
Reddit users were both intrigued by the new Red Lobster CEO and not over the restaurant chain's decision to remove the shrimp deal
Red Lobster originally offered its endless shrimp deal on a limited time basis in the early 2000s.
They added endless shrimp to its permanent menu in 2023.
The endless shrimp deal originally started at $20, but the company later adjusted it to $22, and eventually hiked up the price to $25.
By then, the deal was considered to be 'too popular' among Red Lobster restaurant guests, which played a part in the company's financial issues.
'On this promotion, we don't earn a lot of money. At $22 we don’t. The idea was to bring some traffic,' Thai Union CFO Ludovic Garnier said in an earnings call earlier this year.
'We need to be much more careful regarding, what is the entry point? And what is the price point we're offering for this promotion.'
The price point seemingly didn't matter in the end, and became a reason for Red Lobster's $11 million loss in its third quarter last year.
The endless shrimp deal originally started at $20, but the company later adjusted it to $22, and eventually hiked up the price to $25
Adamolekun is also the CEO of RL Investor Holdings LLC - an entity that is responsible for taking Red Lobster out of bankruptcy and made into a privately held company.
The entity is investing $60 million into the restaurant chain for a 'brand refresh.'
When discussing what went wrong with Red Lobster before he took over with TODAY, he explained it's important for a company to remember 'what made them successful.'
'The prices on the menu are one thing, but giving people options is the more important thing,' Adamolekun said during his November 11 interview.
'We should be the best deal for the best lobster because we do have the best product.'
Despite its debt and previously large losses, Red Lobster is on track to have a positive net income of $2.1 million by the end of its 2026 fiscal year, according to a pro forma financial summary highlighted in a court filing.
RL Investor Holdings LLC is investing $60 million into Red Lobster for a 'brand refresh'
Part of the Red Lobster rebrand includes nine new menu items, including its fan-favorite cornmeal fritters, also known as hush puppies.
'There was a social media riot over us taking off the hush puppies a few years ago,' Adamolekun told TODAY.
'I expect a stampede into our restaurants because we’re bringing back the hush puppies.'
Seven of the items are never-before-seen dishes, including bacon-wrapped sea scallops and a lobster bisque.
As for the potential return of the unlimited shrimp deal, Adamolekun told TODAY that 'anything's possible.'
Daily Mail has reached out to Red Lobster for comment.
