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Last week, it was announced that seafood megachain Red Lobster was sold for $2.1 billion dollars, which is kind of incredible. There were rumors that the company was just going to close every single restaurant in the chain, denying bored Americans of their cheddar biscuits. For shame.
The chain was under pressure from rising costs of shrimp and other seafood. That’s what happens when you offer all-you-can-eat shrimp and lobster during LobsterFest. You ruin it for the rest of us, meanwhile effectively driving up your own prices.
The true death knell for Red Lobster was not the rising cost of seafood. No, no. It was old people. From BusinessWeek:
Beyond the expenses of procuring shrimp, Red Lobster also attracts an oversize share of older diners who don’t eat out frequently, while younger and spendier patrons eat their fish at more upscale restaurants—places that can cover rising costs better. Casual-dining chains like Red Lobster also have been hurt by the massive growth of such fast-casual options as Chipotle Mexican Grill (CMG) and Potbelly(PBPB).
I can’t tell you how many times I suggested to friends that we try to hit up Red Lobster after work to Sea Food Differently, but they weren’t having it. “No one goes there anymore, bro.” It’s the old people. They wrecked our dreams of convenient, yet classy, uniform seafood.
[via BusinessWeek]
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Brian McGannon
What do I love? I love happy hour, a good golf tan, and getting moderately drunk during dinner.
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While I do prefer seafood from non-franchise local restaurants, I’ve never had a bad meal at Red Lobster.
I took my mother and grandmother here for Mother’s Day many times during the later years of High School and College. I haven’t been there in awhile so I can’t comment on their prices now, but back then it was very reasonable.
It’s time to panic, people! Get your cheddar biscuits while you still can!!!
Where I’m at (MS Gulf Coast) you don’t have to get flash frozen crap at some second rate chain, you can go to real, authentic, straight off the loading dock, mom and pop establishments. You might as well take a date to Chili’s or Applebees, it’s just barely a step above them. While not terrible, it is very average. That being said, the biscuits were incredible…ten years ago the last time I went to a Red Lobster.
I haven’t been to Red Lobster in probably 10 years. That’s what happens when you live in Mississippi
The biscuits pretty much made this franchise. The rest of the food there isn’t anything to brag about.
They also got killed by the unlimited biscuits. People would walk in, order an iced tea, and eat 50 biscuits, then leave. Cheap bastards.