Red Lobster Changed Its 'Endless Shrimp' Promotion After Losing $11 Million in One Quarter — Now It's Hauling Out Another All-You-Can-Eat Deal The restaurant chain reported a record $12.5 million operating loss in the fourth quarter of 2023.
By Amanda Breen •
It's been a rough time for Red Lobster following a costly "endless shrimp" deal that contributed to some serious losses.
But this week, the restaurant chain is attempting another major "endless" offering: giving 150 people a chance to win an "Endless Lobster Experience," a two-hour complimentary feast of unlimited lobster, two sides, and Cheddar Bay Biscuits.
Big things coming tomorrow ? Stay tuned! pic.twitter.com/jkk2XQajy0
— Red Lobster (@redlobster) February 19, 2024
Red Lobster reported a record $12.5 million operating loss in the fourth quarter of 2023, and its popular "ultimate endless shrimp" deal, which became a permanent menu item in June after a price hike from $20 to $25, resulted in an $11 million operating loss for Red Lobster in the third quarter of 2023, CNN Business reported.
Although foot traffic increased 4% year over year during Q3 and Q4, customers gravitated toward the less expensive offering, which led to higher-than-expected demand and an initial price adjustment from $20 to $22. But even the subsequent markup wan't enough to offset the deal's popularity.
Now, minority investor Thai Union Group, which said in a February earnings call that it saw a $22 million loss from Red Lobster last year, plans to sell its stake in the restaurant chain.
"We're not expecting to get anything much from the sale," Thai Union Group CEO Thiraphong Chansiri told investors on the call, per Restaurant Business. "So you don't need to expect any one-time gain from Red Lobster."
Red Lobster's "Endless Lobster Experience" was set to run from February 20 until supplies last, but it didn't last long. The promotion sold out on the first day of its release, the company revealed on X.
Related: Red Lobster CEO Resigns After Only 8 Months
However, the lucky winners won't eat completely for free. The experience includes a maximum of 12 one-and-one-fourth pounds Maine lobsters before guests switch to tails, and beverages, tax and gratuity aren't covered, according to Red Lobster.
