"The irony is that traditional Wall Street tactics - this time in the form of sale-leasebacks on the restaurants' land - are what got Red Lobster in trouble in the first place. But Adamolekun has taken a different approach from the slash-and-burn strategy PE is commonly criticized for, making him a fan favorite."
"While at Paulson & Co., he pitched an investment in struggling chain P.F. Chang's. By 2020, he was named CEO. He eventually helped it bring in an additional $1 billion in revenue before stepping down in 2024. The situation at Red Lobster was even more dire when he joined in 2024, as the chain was emerging from Chapter 11 bankruptcy."
"Since then, Adamolekun has done everything from giving the menu a facelift to creating value-focused meals that won't break the bottom line. The result, as Katherine writes, is a CEO with a wide-ranging fan base, from former Red Lobster fans who drifted from the brand to finance bros impressed with his handiwork."
Damola Adamolekun, a 37-year-old Ivy League-educated former private-equity investor, leads Red Lobster's turnaround as CEO following the chain's Chapter 11 bankruptcy emergence in 2024. Unlike typical PE strategies that contributed to Red Lobster's decline through sale-leasebacks and cost-cutting, Adamolekun employs a different approach focused on menu improvements and value-focused meals. His track record includes successfully growing P.F. Chang's revenue by $1 billion while serving as CEO from 2020 to 2024. At Red Lobster, he has cultivated a diverse fan base spanning former customers and finance professionals, distinguishing himself through operational excellence rather than slash-and-burn tactics commonly associated with private equity.
#restaurant-turnaround #private-equity-leadership #red-lobster-recovery #operational-strategy #ceo-management
Read at Business Insider
Unable to calculate read time
Collection
[
|
...
]