Bottomless Shrimp Buffet Blamed for Red Lobster’s $11.3 Million Setback, Confirms CFO
Red Lobster might have thrown caution to the sea breeze with its beloved Endless Shrimp buffet, causing a financial tidal wave. The seafood sensation served up more than just shrimp, contributing to an $11.3 million loss in the third quarter, as reported by Restaurant Business Magazine.
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Shrimply Irresistible or Financial Fiasco?
The normally limited-time $20 all-you-can-eat shrimp deal became a permanent fixture on Red Lobster’s menu this summer. Ludovic Regis Henri Garnier, the CFO of Red Lobster’s parent company Thai Union,
spilled the shrimp-filled beans on the unintended consequences. Garnier confessed, “We knew the price was cheap, but the idea was to reel in more customers. It might have worked a little too well.”
Shrimps Gone Wild
The unexpected popularity of the endless shrimp deal left the chain floundering. Garnier didn’t disclose the exact number of shrimp enthusiasts, but hinted that the buffet’s success led to an abrupt price hike to $25. Apparently, the shrimp were getting too cozy, threatening to swim the chain further into the red.
“We want to keep it on the menu,” Garnier insisted, “And of course, we need to be much more careful regarding what are the entry points and what is the price point we are offering for this promotion.”
Shrimpocalypse Survival Plan
In the battle of bottomless shrimp versus the bottom line, Red Lobster is adjusting its strategy. The shrimp saga teaches us a valuable lesson: even in the sea of endless possibilities, there’s a limit to how much shrimp one can handle without sinking the
ship. Garnier and the Red Lobster team are now navigating the turbulent waters of pricing and popularity, determined to keep the shrimp buffet afloat without draining the company’s coffers.
A Shrimptastic Odyssey
As Red Lobster charts its course, we’re left wondering: Can a $25 shrimp feast still lure in the masses without capsizing the ship? Only time—and perhaps a few more shrimp tales—will tell. Meanwhile, diners may need to weigh the cost of their crustacean cravings against the financial currents.
So, the next time you’re considering a shrimp spree at Red Lobster, remember the slippery slope they faced. It’s a shrimply delicious adventure, but one that comes with a price tag that could make even a lobster blush.
