(Bloomberg) — Red Lobster’s new CEO said customer feedback has improved significantly since the restaurant chain emerged from bankruptcy with a revamped menu and a renewed focus on hospitality.
The chain monitors online reviews to gauge how happy diners are. Positive comments now far outweigh negative ones and overall ratings are trending well above the industry average, Chief Executive Officer Damola Adamolekun said in an interview. He credited the shift in part due to the company training workers to engage more with customers.
“If a guest comes in, somebody should be smiling to greet them at the host stand,” Adamolekun said. “If a guest wants to use the bathroom, you escort them to the bathroom — you don’t point.”
Founded in Florida in 1968, Red Lobster expanded rapidly in the 1970s and 1980s and developed a loyal following for its cheddar biscuits. It was once a preeminent casual dining name, seen as a “fancy” destination to celebrate graduations and other life events. More recently, expensive labor and lease costs along with a money-losing unlimited shrimp promotion helped push the closely held company into bankruptcy in May 2024.
It’s now looking to reconnect with diners and attract a new generation of fans even as a broader slowdown in restaurant traffic has hit casual-dining chains particularly hard. Adamolekun, who had previously led a turnaround at P.F. Chang’s, was appointed to the top post at Red Lobster when it emerged from bankruptcy in September. Sales and traffic have improved since then, he said, without offering specifics.
One of his first moves was refreshing the menu with new items such as lobster pappardelle pasta and bacon-wrapped scallops. The 36-year-old also brought back fan favorites including hush puppies and popcorn shrimp, while keeping the staple biscuits. Other moves have involved launching TV ads, beefing up the chain’s social media presence and partnering with sports teams like Ice Cube’s 3-on-3 basketball league.
Adamolekun said he doesn’t have any immediate plans to bring back unlimited shrimp, but he didn’t rule it out in the future, noting the offer used to be profitable. In the meantime, Red Lobster has introduced appetizer deals and a $5 happy hour. It also has a $19.99 three-course “shrimp sensation” promotion in select locations, which does make money, Adamolekun said.
“We want to have a core value offering at all times,” he said on a Bloomberg TV interview. “Ongoing value is important to the guest, especially in a challenged macroeconomic environment.”
The company has shifted some of its shrimp supply from China to countries like India to avoid steep tariffs imposed by the Trump administration. Red Lobster sources its lobster and crab from the US or Canada, which is exempt from many levies under the USMCA free-trade agreement.
A top priority for Adamolekun is remodeling the chain’s 545 restaurants so they’re “energetic, vibrant, inviting, warm.” He expects renovation costs to be about $500,000 or more for each location and said the process could take four to five years. He aims to open the first remodeled location in the next six months, potentially in Atlanta. Better-looking restaurants tend to drive repeat business, according to the CEO.
“Young people especially care about the look and feel of a restaurant,” he said. “They care the most because they want to be able to take photos, they want to be able to post on social media.”
–With assistance from Scarlet Fu, Romaine Bostick, Michael Hirtzer and Isis Almeida.
More stories like this are available on bloomberg.com
