Red Lobster is talking bankruptcy following a catastrophic backfire of their $20 endless shrimp promotion. Turns out, people willing to pay $20 cash for unlimited access to shrimp can eat more than $20 worth of shrimp in one sitting. Who knew?
The failed promo cost them $11 million in one quarter alone. Despite hiking the price to $25, the chain, known for its addictive Cheddar Bay Biscuits, saw eight locations close in 2023, facing a $22 million annual loss.
They're turning to renegotiated leases or escaping long-term contracts to stay afloat.
So, while the ocean will still have plenty of shrimp, if you want cheddar biscuits, you should stop in soon before the lobster is sunk.