OAN’s James Meyers
9:07 AM – Thursday, November 30, 2023
Red Lobster’s endless shrimp promo deal has reportedly cost the food chain $11 million dollars.
According to Red Lobster’s parent company, Thai Union Group, the seafood chain took an $11 million dollar loss in the third quarter and are on the verge of reporting losses of $20 million for 2023.
“We wanted to boost our traffic, and it didn’t work,” Thai Union Group CFO Ludovic Regis Henri Garnier told Restaurant Business Magazine.
Meanwhile, Red Lobster has had the all-you-can-eat promotion for years, but this year they made the promo permanent, compared to when it was only temporary before.
The move was intended to boost traffic in the third and fourth quarter when business tends to decrease for Red Lobster.
Garnier also said there are no plans to take the promotion off the menu entirely.
“We want to keep it on the menu,” he said.
“And of course we need to be much more careful regarding what are the entry points and what is the price point we are offering for this promotion.”
Currently, the seafood chain has 670 locations across the United States and has struggled to make profits with increasing labor costs and inflation have caused food prices to skyrocket.
The Thai Union Group acquired Red Lobster from Golden State Capital in 2020.
According to Bloomberg News, Thai Union Group could reportedly sell its stake in Red Lobster if they do not see improvement in profits.
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