Red Lobster

Last updated

Red Lobster Hospitality, LLC
Company type Subsidiary
Industry Restaurant
Genre Casual dining
FoundedJanuary 18, 1968;56 years ago (1968-01-18)
Lakeland, Florida, US
Founders Bill Darden
Charley Woodsby
Headquarters Orlando, Florida, US
Number of locations
649 (2024)
Area served
Key people
Jonathan Tibus (CEO)
Salli Setta (president)
Products
RevenueUS$2.6 billion (2018) [2]
Owner Golden Gate Capital (2014–2020)
Number of employees
55,000 [3]
Parent Darden Restaurants (1995–2014)
Thai Union Group (2020–2024)
Website RedLobster.com
Footnotes /references
[4] [5]

Red Lobster Hospitality, LLC is an American casual dining restaurant chain headquartered in Orlando, Florida. The company has operations across most of the United States (including Puerto Rico and Guam) and Canada, as well as in China, Ecuador, Hong Kong, Japan, Malaysia, Mexico, Philippines, Turkey and the United Arab Emirates; as of June 23, 2020, the company had 719 locations worldwide. [6] [1] Golden Gate Capital was Red Lobster's parent company after it was acquired from Darden Restaurants on July 28, 2014. [7] Seafood supplier Thai Union acquired a 25 percent stake in the company in 2016 for a reported $575 million, and in 2020 purchased the remaining portion from GGC. [8]

Contents

In 2024, Red Lobster closed many of its restaurants [9] and then filed for Chapter 11 bankruptcy protection after securing over $100 million in financing commitments from its lenders. The company has also entered a stalking horse agreement to sell itself and have its lenders manage it. [10]

History

Formation and growth

The first Red Lobster restaurant was opened on January 18, 1968, in Lakeland, Florida, by entrepreneurs Bill Darden and Charley Woodsby. [11] [12] The oft-quoted date of March 27, 1968, is based on the incorporation date of Red Lobster Inns of America, Inc. (now GMRI, Inc.) in the Florida Secretary of State's Office. [13]

Originally billed as the "Harbor for Seafood Lovers", the first restaurant was followed by four others throughout the American South. In 1970, General Mills acquired Red Lobster as a five-unit company and with new backing, the chain expanded rapidly in the 1980s.

A Lobsterfest duo meal Red lobster lobsterfest duo (6983708417).jpg
A Lobsterfest duo meal

Red Lobster entered Canada in the 1980s, in many cases by buying Ponderosa restaurant locations. Currently, Red Lobster generally maintains between 25 and 30 locations in Canada, the bulk in larger urban centres in Ontario (across southern Ontario plus one in Sudbury, in northern Ontario) with a smaller number in larger urban centres in all three Prairie provinces. It exited the Quebec market in September 1997, due to financial losses, and was entirely absent from the Maritime provinces, British Columbia and the Arctic territories. [14]

In 1992, Red Lobster introduced its now famous Cheddar Bay Biscuits, developed by culinary leader Kurt Hankins. [15]

On March 29, 1994, Bill Darden died, after an extended illness, at the age of 75. [16]

In 1995, Red Lobster (along with Olive Garden and other sister chains), became part of Darden Restaurants, Inc. During that time, General Mills decided to release Darden into an independent, publicly traded corporation. [5]

2009 prototype and sale

The "Bar Harbor" prototype design as seen at the Baton Rouge, Louisiana location Red Lobster, Baton Rouge.jpg
The "Bar Harbor" prototype design as seen at the Baton Rouge, Louisiana location

In 2009, Red Lobster debuted its new Bar Harbor restaurant prototype modeled after coastal New England architecture. [17] The new exterior features include shingle and stone towers, signal flags, and Adirondack-style benches. The interior updates include dark wood paneling, warm-toned fabrics, soft lighting, and nautical decor and artwork. [18]

On December 19, 2013, Darden Restaurants announced plans to sell or spin off the Red Lobster brand, citing pressure from stock investors. [19] This was in direct response to Darden's going over budget on a new digital platform. [20]

On May 12, 2014, Darden announced that as part of its spinoff of Red Lobster, it was converting the co-located Red Lobster and Olive Garden locations into standalone Olive Garden locations. [21] On May 16, 2014, Darden announced it would be selling the Red Lobster seafood restaurant chain to Golden Gate Capital for US$2.1 billion. [22] Darden announced the completion of the sale of Red Lobster on July 28, 2014. [23]

On August 6, 2014, Red Lobster announced their new headquarters location in CNL Center City Commons in Orlando. [24] On March 6, 2015, Red Lobster officially opened the Restaurant Support Center. [25] Seafood supplier Thai Union acquired a 25 percent stake in the company in 2016 for a reported $575 million, and in 2020 purchased the remaining portion from GGC. [8]

Restructuring and bankruptcy

In March 2024, Jonathan Tibus was hired as the company's new CEO. Tibus previously was CEO during the bankruptcy of Kona Grill and the chief restructuring officer of Krystal. Officials deemed Red Lobster as a "zombie brand" and said that they were exploring options to save the company, including a restructuring turnaround, fire sale, or a possible bankruptcy filing. Red Lobster also announced that it was searching for a new buyer, and if one could not be found, the company may file for bankruptcy within the coming months. [26]

On April 16, 2024, Bloomberg reported that Red Lobster was preparing to file for Chapter 11 bankruptcy, blaming financial pressures and an $11 million loss in its "endless shrimp" promotion as part of the decision. [27] The company plans to exit some underperforming leases as well as address other long-term contracts and rising labor costs. The company is expected to continue operating normally during the bankruptcy procedure while discussing a possible bankruptcy debt reduction plan with its creditors. [28]

On May 13, 2024, Red Lobster abruptly closed at least 99 restaurants in 27 states. [9] This included all of its Buffalo-area locations and most of its Orlando-area locations. TAGeX Brands is currently conducting liquidation auctions for restaurant fixtures and supplies at the closed locations and is set to conclude them by May 16. [29]

On May 14, 2024, Red Lobster announced that it was preparing to file for Chapter 11 bankruptcy protection before Memorial Day weekend, planning to restructure agreements with its landlords and creditors in efforts to shed some of its debt. [30] On May 20, 2024, Red Lobster filed for Chapter 11 bankruptcy protection after securing over $100 million in financing commitments from its lenders. The company has also entered a stalking horse agreement to sell itself and have its lenders manage it. [10]

Promotions

A basket of Cheddar Bay Biscuits from Red Lobster Red Lobster - Biscuits (6022841688).jpg
A basket of Cheddar Bay Biscuits from Red Lobster

Red Lobster has offered an endless snow crab leg promotion twice in its history (as of September 2003). However, in 2003, the promotion resulted in its parent company, Darden Restaurants, taking a $3 million charge to third-quarter earnings, resulting in president Edna Morris's departure from the company.

The ill-timed promotion was launched amid high wholesale crab leg prices. The chain also underestimated how many times a customer would order more. Further complicating matters at the restaurant level was the time customers spent table-side in the restaurant cracking crab legs. This resulted in increased waiting times in the lobby and overall diminished customer capacity per hour. [31]

In February 2016, American singer Beyoncé referenced Red Lobster in her single "Formation". After unexpectedly releasing the single and performing it during the Super Bowl 50 halftime show, Red Lobster reported a 33% sales increase due to the reference. [32]

Red Lobster introduced a new Daily Deals menu in 2020, featuring Endless Shrimp Mondays and more deals. [33]

In the summer of 2023, Red Lobster reintroduced their $20 endless shrimp item to the menu as a permanent addition, which resulted in a $11 million loss for its major shareholder, Thai Union, a Bangkok-based canned seafood company. [34]

The brand specializes in seafood, including crab, fish, lobster, mollusks, and shrimp. It also serves chicken, desserts, pasta, and steak. [35] [ promotional source? ]

In the late 70's and early 80s, Red Lobster served fake scallops made from a white fish slurry baked in sheet pans. Cooks would then cut out individual "scallops" with small cookie cutters.

Lobster bisque controversy

In February 2016, Inside Edition reported that Red Lobster used a mix of less expensive langostino along with Maine lobster in their lobster bisque recipe. [36] [37]

Locations

As of May 15, 2024, the company had 650 locations worldwide. [38] These locations span 44 US states (including Puerto Rico, Guam), China, Canada, Ecuador, Hong Kong, India, Japan, Malaysia, Mexico, the Philippines, Qatar, and the United Arab Emirates. [6] [1] On May 14, 2024, it was announced that at least 48 locations in 21 states will shut down. [38]

In 2007, writer Stewart O'Nan published the novella Last Night at the Lobster about the closing of a Red Lobster restaurant in Connecticut.

See also

Related Research Articles

<span class="mw-page-title-main">Long John Silver's</span> Restaurant chain

Long John Silver's, formerly known as Long John Silver's Seafood Shoppes and sometimes abbreviated as LJS, is an American chain of fast-food restaurants that specializes in seafood. The brand's name is derived from the character of the same name from Robert Louis Stevenson's novel Treasure Island.

<span class="mw-page-title-main">Olive Garden</span> American restaurant chain

Olive Garden is an American casual dining restaurant chain specializing in Italian–American cuisine. It is a subsidiary of Darden Restaurants, Inc., which is headquartered in Orange County, Florida. As of 2022, Olive Garden restaurants accounted for $4.5 billion of the $9.63 billion revenue of its parent, Darden.

Brad Blum is the Co-Owner of FoodFirst Global Restaurants. He was the Founder, Chairman & CEO of FoodFirst Global Restaurants, Inc., upon the establishment of the company in May 2018. Previously he was the CEO of Burger King from December 2002 to July 2, 2004. He joined the company from Darden Restaurants where he had headed the Olive Garden unit, but left after only 18 months citing strategic differences with Burger King's board. Blum's successor, Greg Brenneman, was appointed on August 1, 2004. Blum was the CEO of Romano's Macaroni Grill from December 2008 to July 2010.

<span class="mw-page-title-main">Planet Hollywood</span> North American company of theme restaurants inspired by North American cinema

Planet Hollywood International Inc. is a themed restaurant chain inspired by the popular portrayal of Hollywood. The company is owned by Earl Enterprises corporation. Earl Enterprises was founded by Robert Earl.

Darden Restaurants, Inc. is an American multi-brand restaurant operator headquartered in Orlando, Florida. As of May 2023, the firm owns three fine dining restaurant chains: Ruth’s Chris Steak House, Eddie V's and The Capital Grille; and six casual dining restaurant chains: Olive Garden Italian Restaurant, LongHorn Steakhouse, Bahama Breeze, Seasons 52, Yard House and Cheddar's Scratch Kitchen. Until July 28, 2014, Darden also owned Red Lobster. Darden has more than 1,800 restaurant locations and more than 175,000 employees, making it the world's largest full-service restaurant company.

<span class="mw-page-title-main">Captain D's</span> U.S.-based restaurant chain

Captain Ds, LLC. is an American fast casual restaurant chain that specializes in seafood and is headquartered in Nashville, Tennessee. The chain was founded as Mr. D's Seafood and Hamburgers by Raymond L. Danner Sr. on August 15, 1969, in Donelson, Tennessee. The chain is currently owned by private-equity firm Centre Partners. Captain D's has more than 500 locations in the United States.

<span class="mw-page-title-main">Landry's</span> American restaurant company

Landry's, Inc., is an American, privately owned, multi-brand dining, hospitality, entertainment, and gaming corporation headquartered in Houston, Texas. Landry's, Inc., owns and operates more than 600 restaurants, hotels, casinos, and entertainment destinations in 35 U.S. states and the District of Columbia. The company also owns and operates numerous international locations. The company is owned by President & CEO Tilman Fertitta.

<span class="mw-page-title-main">Smokey Bones</span>

Barbeque Integrated Inc. is an American casual dining restaurant chain. Owned by Barbeque Integrated Inc. and under the umbrella of Sun Capital Partners, Smokey Bones is headquartered in Aventura, Florida. As of April 2023, Smokey Bones has 62 restaurants in 16 Eastern states. Under its previous owner, Smokey Bones had as many as 128 restaurants across most of the United States before it shrank to its current core area.

<span class="mw-page-title-main">Sizzler</span> American restaurant chain

Sizzler USA Restaurants, Inc., doing business as Sizzler, is a United States-based restaurant chain with headquarters in Mission Viejo, California, with locations mainly in California, plus some in the nearby states of Arizona, Nevada, New Mexico, Idaho, Utah, Oregon and Puerto Rico. It is known for steak, seafood, and salad bar items.

<span class="mw-page-title-main">Joe's Crab Shack</span> American restaurant chain

Joe's Crab Shack is an American chain of beach-themed seafood casual dining restaurants. Founded in Houston, Texas, the restaurant now operates locations all across the United States.

Golden Gate Capital is an American private equity firm based in San Francisco. The firm makes investments in a number of select industries, including technology, financial services, retail and industrial, through leveraged buyout transactions, as well as significant minority purchases and growth capital investments. As of April 2018, it had over $15 billion in assets under management.

<span class="mw-page-title-main">Cheddar's Scratch Kitchen</span> American restaurant chain

Cheddar's Scratch Kitchen, formerly known as Cheddar's Casual Cafe, is an American restaurant chain based in Irving, Texas. Founded in 1979, the company has more than 170 locations in 28 states as of 2018.

<span class="mw-page-title-main">LongHorn Steakhouse</span> American restaurant chain

LongHorn Steakhouse is an American casual dining restaurant chain owned and operated by Darden Restaurants, headquartered in Orlando, Florida. As of 2023, LongHorn Steakhouse generated more than $2.5 billion in sales in its 563 locations.

China Coast was a casual dining American restaurant chain owned by Darden Restaurants Inc., specializing in American Chinese cuisine.

<span class="mw-page-title-main">Ruth's Hospitality Group</span> American holding company

Ruth's Hospitality Group, Inc. was a restaurant company with a focus on American steakhouse restaurants. Ruth's was acquired by Darden Restaurants in June 2023.

<span class="mw-page-title-main">H. Salt Esq. Fish & Chips</span> American fish and chips restaurant chain

H. Salt Esq. Fish & Chips is a restaurant chain specializing in British-style fish and chips, founded by Haddon Salt in Sausalito, California, in 1965. Salt followed his father and grandfather in becoming a master fish cook and entrepreneur.

<span class="mw-page-title-main">Thai Union Group</span> Producer of seafood-based food products

Thai Union Group PCL is a Thailand-based producer of seafood based products. It was founded in 1977, and was listed on the Stock Exchange of Thailand (SET) on 22 November 1994.

<span class="mw-page-title-main">Seafood pizza</span> Variety of pizza with seafood toppings

Seafood pizza is a pizza prepared with seafood as a primary ingredient. Many types of seafood ingredients in fresh, frozen or canned forms may be used on seafood pizza. Some retail pizza chains, as well as smaller restaurants, offer seafood pizzas to consumers.

William Bristor Darden was an American businessman and the founder of the Red Lobster restaurant franchise. He is also the namesake of the multi-brand restaurant operator Darden Restaurants, which considers Darden to be its founder.

Maryland Fried Chicken is a group of independently owned restaurants and former corporate chain of franchised fried chicken take-out restaurants that originated in Orlando, Florida. It was founded by Al Constantine in 1961 and grew to cover some 20 U.S. states and the Bahamas at its peak before ultimately going bankrupt in the late 1970s and dissolving as a chain.

References

  1. 1 2 3 "International Franchises | Red Lobster Seafood Restaurants". www.redlobster.com. Retrieved April 22, 2022.
  2. ↑ "Red Lobster". Forbes .
  3. ↑ "Red Lobster Competitors, Revenue and Employees - Owler Company Profile". Archived from the original on June 7, 2020.
  4. ↑ "Darden 2011 Annual Report" (PDF). Darden Restaurants, Inc. Archived from the original (PDF) on December 24, 2012. Retrieved April 12, 2012.
  5. 1 2 Darden Restaurants, Inc. (May 29, 2011). "FY 2011 10-K". U.S. Securities and Exchange Commission. Retrieved April 11, 2012.
  6. 1 2 "Red Lobster Seafood Restaurants | US". www.redlobster.com. Retrieved June 23, 2020.
  7. ↑ "Darden Completes Sale Of Red Lobster To Golden Gate Capital". MarketWatch. July 28, 2014. Archived from the original on August 27, 2014. Retrieved August 26, 2014.
  8. 1 2 Fuller, Austin (August 31, 2020). "Orlando-based Red Lobster acquired by Thai Union and other investors". Orlando Sentinel. Retrieved April 17, 2022.
  9. 1 2 McCarthy, Kelly (May 15, 2024). "Red Lobster closes multiple locations as company prepares to file for bankruptcy". ABC News.
  10. 1 2 "Red Lobster seeks bankruptcy protection with $100 mln in financing commitments". Reuters. May 20, 2024. Retrieved May 20, 2024.
  11. ↑ Walansky, Aly (January 18, 2018). "Red Lobster turns 50: Celebrate with Cheddar Bay Biscuits and a year of free food". Today.
  12. ↑ Myers, Dan (July 1, 2015). "9 Things You Didn't Know About Red Lobster". TheDailyMeal.com. Archived from the original on July 4, 2015.
  13. ↑ Darden Restaurants, Inc. report to U.S. Securities and Exchange Commission (PDF). August 15, 1997. Retrieved April 16, 2018.
  14. ↑ Bégin, Jean-François (September 14, 1997). "Red Lobster ferme ses 14 restaurants du Québec" (PDF). BAnQ (in French). La Presse. p. A1-A2.
  15. ↑ Hunt, Kristin (June 5, 2014). "A brief history of Red Lobster's Cheddar Bay Biscuit". Thrillist. Retrieved November 16, 2022.
  16. ↑ Shenot, Christine (March 30, 1994). "Founder Of Red Lobster, William B. Darden, Dies". Orlando Sentinel. Archived from the original on August 24, 2014. Retrieved May 17, 2014.
  17. ↑ "Bar Harbor - Overview". Red Lobster. Darden Concepts, Inc. Archived from the original on April 17, 2012. Retrieved April 11, 2012.
  18. ↑ Trevizo, Perla (December 25, 2009). "Red Lobsters cook up fresher paven look". Times Free Press. Archived from the original on January 5, 2010. Retrieved April 11, 2012.
  19. ↑ "Darden Looking to Spin off or Sell Red Lobster". Moneynews. The Associated Press. December 19, 2013. Archived from the original on December 24, 2013. Retrieved December 23, 2013.
  20. ↑ Pedicini, Sandra (September 20, 2013). "Darden Restaurants reducing 85 corporate positions; COO Drew Madsen leaving". Orlando Sentinel. Archived from the original on December 31, 2013. Retrieved December 28, 2013.
  21. ↑ Duprey, Rich (May 12, 2014). "Darden Restaurants Shedding Franken-Chain Concept". Motley Fool. Retrieved April 16, 2018.
  22. ↑ Rupp, Lindsey (May 16, 2014). "Darden to Sell Red Lobster for $2.1 Billion". Bloomberg News. Retrieved July 29, 2014.
  23. ↑ Choi, Candace (July 28, 2014). "Orlando's Darden completes completes $2.1 billion sale of Red Lobster". News 13. Bright House Networks. Retrieved May 14, 2024.
  24. ↑ Brinkmann, Paul (August 6, 2014). "Red Lobster announces location of new headquarters". Orlando Sentinel. Archived from the original on October 6, 2014. Retrieved September 26, 2014.
  25. ↑ Arnold, Kyle (March 6, 2015). "Red Lobster debuts new downtown HQ". Orlando Sentinel. Retrieved February 11, 2016.
  26. ↑ Blank, Christine (March 25, 2024). ""Zombie brand" Red Lobster flips CEO position to turnaround specialist". SeafoodSource. Retrieved March 31, 2024.
  27. ↑ Basu, Reshmi (April 16, 2024). "Red Lobster Considers Bankruptcy to Deal With Leases and Labor Costs". Bloomberg.com. Retrieved April 17, 2024.
  28. ↑ Revell, Eric (April 16, 2024). "Red Lobster considering bankruptcy filing: report". Fox Business. Retrieved April 16, 2024.
  29. ↑ Meyersohn, Nathaniel (May 13, 2024). "Red Lobster is abruptly closing dozens of restaurants". CNN. Retrieved May 13, 2024.
  30. ↑ Haddon, Heather (May 14, 2024). "Red Lobster Preparing to File for Bankruptcy Protection This Month". The Wall Street Journal. Retrieved May 14, 2024.
  31. ↑ Newton, Benita D. (September 26, 2003). "All-you-"can-eat was too much". St. Petersburg Times Online. Archived from the original on April 28, 2012. Retrieved April 11, 2012.
  32. ↑ "Red Lobster: Sales surged after Beyonce's "Formation"". CBS News. February 9, 2016.
  33. ↑ "New Daily Deals at Red Lobster® Give Everyone Something to Celebrate in 2020". Red Lobster. September 28, 2020. Archived from the original on January 27, 2021. Retrieved February 28, 2021.
  34. ↑ Meyersohn, Nathaniel (May 3, 2024). "What went wrong at Red Lobster". CNN. Retrieved May 14, 2024.
  35. ↑ "Menu". Red Lobster.
  36. ↑ Bellomo, Rheanna O'Neil (February 10, 2016). "What You Need To Know Before You Eat Lobster This Valentine's Day". Delish. Retrieved July 23, 2016.
  37. ↑ "A Third of Tested Restaurant Lobster Dishes Actually Contain Cheaper Seafood, Investigation Shows". Inside Edition. February 8, 2016. Archived from the original on January 26, 2022. Retrieved January 26, 2022.
  38. 1 2 Chung, Maya (May 14, 2024). "At Least 48 Red Lobster Locations Are Closing. People Aren't Happy About It". TIME. Retrieved May 15, 2024.
  39. ↑ "Red Lobster Opens in Doha". Marhaba.qa. June 11, 2012. Archived from the original on January 27, 2019. Retrieved January 26, 2019.
  40. ↑ "About Us". Red Lobster Middle East. Retrieved January 26, 2019.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.