Chili's, starting in the 70s, was perceived as a unique place where one could enjoy a casual date with a burger and beer affordably. General Mills' investment in the company during that time spurred its expansion across the U.S., leading to the development of popular items like lobster fast. By the 80s and 90s, Chili's became the largest seafood restaurant chain in the U.S. However, with the entry of activist investor Starboard in Darden Restaurants in an attempt to enhance profitability, Darden responded by spinning off Red Lobster to address the investor's demands for change.
The seafood chain found itself deep in the red after a disastrous unlimited shrimp promotion. Wall Street Journal restaurant reporter Heather Haddon explains what sunk Red Lobster — and the troubled waters facing other casual dining chains.
This episode was produced by Denise Guerra and Haleema Shah, edited by Matt Collette, fact-checked by Laura Bullard, engineered by David Herman and Andrea Kristinsdottir, and hosted by David Pierce.
Transcript at vox.com/today-explained-podcast
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