Since its establishment in 1968, Red Lobster has been one of the more popular casual dining spots. The restaurant receives high marks from many for the delicious cheddar biscuits, scrumptious shrimp, and the live tank of lobsters that greet you as soon as you walk in.
However, the beloved chain that boasts locations all over the world is currently in peril. But why did Red Lobster close? Is Red Lobster going out of business? Here is all you need to know about the abrupt closing of the 99 and counting Red Lobster restaurants.
Is Red Lobster going out of business? Why the chain is closing locations:
Like many restaurants, Red Lobster couldn't avoid the aftermath of the COVID-19 pandemic that has driven prices to high levels all over the country. As the seafood chain knew they needed to get people back in the booths, the company created an Endless Shrimp offer last fall. The move proved costly as customers came out in full force, resulting in a significant loss for the company that is colloquially known as the Red Lobster Endless Shrimp Debacle.
In addition, throw in some turmoil with the higher-ups in the chain, which has gotten Red Lobster to this point. The company is beginning to close locations while likely filing for bankruptcy in the coming weeks.
Is Red Lobster closing permanently near me? Here's what to know about state closures:
According to the Red Lobster website, at least 99 locations from 21 states have shut their doors. Thus far, the closures have accounted for 15% of the chain, with that list expected to continue to grow as the demise of the seafood chain continues. Several major cities that will see their restaurants close include Sacramento, San Diego, Denver, Indianapolis, and Orlando. The closing locations will also hold an auction featuring equipment from the local Red Lobster.
What's next for Red Lobster?
With more closures on the horizon, it is tough to say which will be the next city or state to lose its location. However, as mentioned above, the chain will announce bankruptcy soon, hoping to trim its debt down.
Over the next few weeks, the outlook of Red Lobster will likely become clearer. Until then, it might be good to drop into your location (if open) and enjoy some seafood tastiness, while you can.