Red Lobster finds itself in choppy waters once again as the American restaurant chain contemplates filing for bankruptcy following yet another ill-fated “all-you-can-eat” promotion.

The most recent promotion – $30 endless shrimp – was made a permanent feature on the Red Lobster menu in mid-2023, the deal proving too popular as Red Lobster underestimated its guest’s insatiable appetite for discounted prawns. This recent misstep has left the chain reeling, reminiscent of previous voyages that led the once revolutionary restaurant chain astray.

It appears that those who forget history are doomed to repeat it, as this most recent insane promotion has previously left the company in serious financial trouble back in 2003 when Red Lobster waded into uncharted territory with its “Endless Crab” promo. The chain lost a staggering $4.9 million in just seven weeks. One Red Lobster executive lamented, “It wasn’t the second helping on all-you-can-eat, but the third.”

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Fast forward two decades, and history has indeed repeated itself. The restaurant’s decision to make the $30 endless shrimp promotion a permanent fixture released the figurative kraken – this time costing the company $16.6 million in just 12 months. Once again, customers clamoured for more, overwhelming Red Lobster’s resources, sending an already troubled chain’s profits into dire straits.

Foreign ownership and years of cost-cutting has left the once pioneering restaurant concept drowning in a sea of casual dining competitors. Now Red Lobster shareholders are consider filing for bankruptcy protection to restructure its debt and close some of its 650 US locations.

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