For millions of Americans, Red Lobster was more than a seafood chain. It was the place for birthdays, anniversaries, and Friday nights with family. That legacy took a serious hit last year when roughly 130 locations abruptly shut their doors. Now, even after bankruptcy proceedings and a change in ownership, the company is signaling that the downsizing may not be over.
In a candid interview with the The Wall Street Journal, CEO Damola Adamolekun acknowledged that more closures are under review. The company is combing through leases and performance metrics, looking for additional sites to cut in an effort to stabilize operations.
“There’s a lot of positive signs,” Adamolekun told the Journal, “but we inherited a very damaged brand, so there’s still work to do to repair all of that.”
That statement captures the difficult balancing act now facing Red Lobster’s leadership. On one hand, the chain reports that sales have climbed 10 percent compared to last year. A revamped seafood boil menu introduced last June proved so popular that locations quickly ran out of key ingredients. On the other hand, revenues remain below pre-bankruptcy levels, and many aging restaurants require costly renovations the company can scarcely afford.
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