Struggling Red Lobster Announces More Store Closures
Casual chain dining is plenty on any given evening, but Red Lobster reigns supreme for shellfish. Red Lobster, with 670 locations worldwide
Red Lobster closed at least eight outlets in the past three months due to low sales and revenues. Some of these units had been in their neighborhoods for decades.
"We regularly review our restaurant portfolios as part of the normal course of business," emailed Red Lobster to Restaurant Business.
The last Red Lobsters closed last week in Syracuse, New York, and Albemarle County, Virginia. This month, another St. Louis store closed,
and Beachwood, Ohio, San Angelo, Texas, and Oakhurst, New Jersey locations shuttered in December 2022.
These shuttered sites make up only 1% of Red Lobster's total units, but they indicate a disturbing trend in recent years.
Why is this tendency down? Red Lobster, like many other restaurants and businesses, has struggled with inflation and rising labor and food prices.
The chain lost $15.3 million in the third quarter of 2022, disappointingly compared to its $10.4 million target.
It's not all awful for Red Lobster. The seafood giant's sales have been constant for five years, until 2020. Business is still below pre-pandemic levels
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