Red Lobster's Financial Struggles and Potential Restaurant Closures
Red Lobster faces potential closure of over 100 additional restaurants due to expensive leases, following bankruptcy filing and closure of 93 locations. The company blames financial struggles on inflation, failed promotions like the $20 all-you-can-eat shrimp deal, and high rent costs.
Key Points
- Facing closure of over 100 additional restaurants
- $20 all-you-can-eat shrimp deal contributed to financial loss
- Inflation and high rent costs cited as reasons for bankruptcy
Pros
- Attempt to renegotiate cheaper rent for survival
- Popular promotions like the $20 shrimp deal attracted customers
Cons
- Financial loss due to failed promotions
- Risk of closing 135 locations