Endless Shrimp was Red Lobster's rock bottom. Now it's clawing back.

"The disastrous Endless Shrimp promotion cost the 56-year-old chain $11 million in three months. A revolving door of owners alienated loyal fans by slashing perennial favorites like hush puppies from the menu, and left the restaurants looking dated and stale. By the time Red Lobster filed for bankruptcy in May 2024, it was more than $1 billion in debt."

"Adamolekun's playbook has been mostly straightforward: fix the menu, refresh the restaurants' look and feel, and generate buzz. The picture isn't entirely rosy; earlier this month, Adamolekun said the chain will likely close more locations to cut costs. His critics question whether his plans to turn the chain around are bold enough."

"What's clear is that Adamolekun is shifting the narrative, and the strategy of putting Adamolekun front and center has made Red Lobster's turnaround feel like a bootstrapped effort, rather than one straight out of the private-equity playbook."

Red Lobster, once a struggling 56-year-old chain burdened by $1 billion in debt and a disastrous Endless Shrimp promotion that cost $11 million, filed for bankruptcy in May 2024. New CEO Damola Adamolekun, a 37-year-old private-equity executive who previously led P.F. Chang's turnaround, has become the public face of Red Lobster's comeback. His strategy includes menu restoration, restaurant aesthetic improvements, and brand buzz generation. Despite plans to close additional locations for cost reduction, foot traffic is increasing and diners are spending more, reversing the trend of declining restaurant visits. Adamolekun's visible leadership approach positions the turnaround as a bootstrapped effort rather than a typical private-equity operation, successfully shifting public perception of the brand.

Read at Business Insider