Red Lobster Struggles Continue as 48 Locations Abruptly Close
Financial Difficulties Plague Orlando-Based Chain
Struggling Red Lobster has abruptly closed at least 48 of its restaurants around the country, according to a leading restaurant publication.
Once a thriving seafood chain, Red Lobster has faced financial challenges in recent years. In 1978, the company boasted 236 restaurants and $291 million in sales. By 1985, it had expanded to 372 restaurants and generated $834 million in sales.
However, the company has struggled to maintain its growth and profitability in recent years. In 2021, Red Lobster's parent company, Golden Gate Capital, announced plans to close 140 underperforming restaurants by 2023.
The latest round of closures comes as Red Lobster faces increased competition from other seafood chains and changing consumer preferences. The chain has also been impacted by the COVID-19 pandemic, which forced many of its restaurants to close or operate at reduced capacity.
Red Lobster is now working on a turnaround plan that includes menu changes, new marketing initiatives, and cost-cutting measures. However, it remains to be seen whether these efforts will be enough to revitalize the struggling chain.
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