Which Red Lobster locations are closing now?
Red Lobster has closed another round of restaurants after filing for Chapter 11 bankruptcy earlier this year.
In the wake of the COVID-19 pandemic, Red Lobster looked to boost traffic to its restaurants by offering a $20 all-you-can-eat shrimp deal that the company hoped would serve as a loss-leader and bring in more customers who would become regulars.
However, the deal itself proved too good for customers to pass up. The Los Angeles Times reported that some patrons took to social media to brag about how many shrimp they were able to scarf down, including one woman who said she ate 108 shrimp during a four-hour meal.
RELATED: Red Lobster files for bankruptcy after dozens of restaurant closures
Where is Red Lobster closing?
The following restaurants have recently closed:
- Arizona: 1521 S. Yuma Palms Parkway, Yuma
- Arkansas: 8407 W. Markham Street, Little Rock
- California: 8703 Murray Drive, La Mesa
- Colorado: 4925 N Academy Blvd, Colorado Springs
- Florida: 326 Miracle Strip Pkwy S.W., Fort Walton Beach
- Florida: 5110 N 9th Ave, Pensacola
- Florida: 8909 Us Highway 19, Port Richey
- Georgia: 6550 Tara Blvd, Jonesboro
- Illinois: 1604 N State Road Route 50, Bourbonnais
- Illinois: 4625 N Sterling Ave, Peoria
- Illinois: 902 Commons Drive, Geneva
- Indiana: 4353 Franklin Street, Michigan City
- Minnesota: 12515 Elm Creek Blvd.,N., Maple Grove
- Minnesota: 8900 Golden Valley Road, Golden Valley,
- Missouri: 2381 Maplewood Commons Drive, Maplewood
- New York: 750 Upper Glen Street, Queensbury
- New York: 925 Hunts Point Ave, Bronx
- North Carolina: 304 A Western Blvd., Jacksonville
- Ohio: 17227 Southpark Center, Strongsville
- South Carolina: 1270 Knox Abbott Drive, Cayce
- Virginia: 4415 S. Laburnum Ave, Richmond
- Virginia: 555 S. Van Dorn Street, Alexandria
- Virginia: 709 Independence Blvd., Virginia Beach
All-you-can-eat-shrimp proved too costly
As customers looked to gorge themselves on shrimp and opted to continue consuming Red Lobster's discounted fare, the company took bigger losses on the promotion.
In this photo illustration, a cooked lobster is displayed on a plate at a Red Lobster restaurant on May 20, 2024 in Austin, Texas. Red Lobster has filed for Chapter 11 bankruptcy protection after a failed lease-back agreement and "endless shrimp" pr
"You already have a small profit margin," Jim Salera, a research analyst at Stephens focused on restaurants and packaged food and beverages, previously told FOX Business. "You can very easily go beyond that when you're attracting consumers who are just looking to have that one item or engage with that one offering and not kind of branching out across the menu."
Red Lobster files for bankruptcy
The 56-year-old chain filed for bankruptcy in May, days after shuttering dozens of restaurants.
"This restructuring is the best path forward for Red Lobster. It allows us to address several financial and operational challenges and emerge stronger and re-focused on our growth," CEO Jonathan Tibus said. Tibus, a corporate restructuring expert, took the top post at the chain in March.
RELATED: Rare orange lobster almost cooked up at Red Lobster; gets last-minute reprieve
According to court filings, Red Lobster had 551 U.S. restaurants, 27 restaurants in Canada and 27 franchised locations in Mexico, Japan, Ecuador and Thailand. The company said it has 36,000 employees in the U.S. and Canada.
Sometimes, Red Lobster would lower its prices to compete, a move that was often disastrous. In 2003, the company lost millions of dollars on an all-you-can-eat "Endless Crab" promotion when crab prices rose, Allen said. Twenty years later, the chain did the same thing with an "Ultimate Endless Shrimp" promotion.
Orlando, Florida-based Red Lobster said in court filings that its annual guest counts were down 30% from 2019. The chain lost $76 million in 2023.