It wasnt just the free shrimp that tanked Red Lobster.
The Orlando-based seafood chain filed for Chapter 11 bankruptcy last week citing $1 billion in debt, according to court filings. The company announced the closure of dozens of stores nationally, with plans to sell company assets including auctioning interior furniture and kitchenware.
The announcement comes after a disastrous 2023 endless shrimp promotion in which, for around $20, patrons could order as much shrimp as they wanted, prompting eating challenges by users of TikTok. But while it brought customers to stores, it also put the chain $11 million in the red.
Heather Haddon covers the restaurant industry for the Wall Street Journal and broke the news about Red Lobsters …
Read the full article at: https://www.vox.com/today-explained-podcast/351642/red-lobsters-mistakes-go-beyond-endless-shrimp