Endless shrimp contributed to an $11 million loss at Red Lobster. Now it’s offering endless lobster (but only to a few people)
Red Lobster’s Endless Shrimp promotion was a big part of the reason the chain reported an $11 million operating loss in the third quarter of last year. Now, as it gears up for Lobsterfest 2024, the company is taking steps to ensure that doesn’t happen again—while capitalizing on consumer hunger.
This year’s crustacean celebration will let 150 guests—and only 150 guests—enjoy endless lobster. There are, of course, caveats.
First, you’ll only have two hours to shovel the seafood into your face. And if you manage to down a dozen 1.25 lb Maine lobsters in one sitting and still want more, you’ll be offered Maine lobster tails or Caribbean Rock lobster tails for subsequent courses.
The lobsters will be free for the winners. They’ll have to pay for their drinks, as well as tax and gratuity.
To qualify for the promotion, Red Lobster says people will have to monitor its social media channels to see when the opportunity to claim the feast goes live.
Last year, Red Lobster saw a big loss in its third-quarter earnings after it expanded its Endless Shrimp promotion to an everyday event, rather than its traditional Mondays-only offering. Prices were higher, but so many people took advantage of the deal—and some to a gluttonous extreme—that earnings tumbled.
“It’s one of the iconic promotions for Red Lobster, so we want to keep it on the menu,” Ludovic Garnier, chief financial officer of Thai Union Group (which owns a stake in Red Lobster), told investors on a call in November. “But, of course, we need to be much more careful regarding what is the entry point and what is the price point.”
