Business Wars What Killed Red Lobster? | Swimming with Sharks | 2
Mar 12, 2025
Red Lobster aims for a comeback with bold ideas, including the allure of endless shrimp. However, the chain grapples with surprising consumer appetites and service issues. The conversation dives into financial turmoil and ownership struggles, with the new CEO facing harsh critiques. Marketing missteps lead to significant setbacks, including bankruptcy concerns. Despite daunting challenges, there's a flicker of hope as new strategies aim to draw in younger diners and rejuvenate the brand.
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VIP Visit Sparks Executive Showdown
- Paul Kenny flew in from Bangkok and berated Red Lobster executives for operational choices like giving free side salads and cutting shrimp tails.
- His blunt, hands-on style signaled Thai Union would strongly influence restaurant decisions after buying the chain.
Supplier-Owner Creates Conflict Of Interest
- Thai Union bought Red Lobster to create vertical synergies between supplier and restaurant operations.
- That ownership created tension as Thai Union pushed Red Lobster to buy more of its seafood products.
Beware Aggressive Labor Cuts
- Cut costs carefully because labor reductions can harm service and customer experience.
- Test service-capacity changes gradually to avoid undermining the brand's value proposition.