Red Lobster, a staple in the American seafood dining scene, is facing significant financial challenges that could result in the closure of nearly 130 of its restaurants. The company, which recently filed for Chapter 11 bankruptcy, cited an inability to renegotiate leases as a primary concern. According to bankruptcy documents, the company has listed 228 leases that it claims will continue to lose money if operations proceed as they currently are.
The seafood chain, known for its signature dishes like Cheddar Bay Biscuits, has already closed 99 locations across 28 states. The potential closure of an additional 129 restaurants underscores the severity of the financial predicament the company faces. Among the locations at risk is the iconic Times Square location in New York City, where Red Lobster has been a fixture for 22 years.
The financial troubles were highlighted in a bankruptcy filing in the Middle District of Florida. The company has experienced a 30% drop in guests since 2019, exacerbated by a challenging economic environment and increased competition within the restaurant industry. "Recently, the debtors have faced a number of financial and operational challenges, including a difficult macroeconomic environment, a bloated and underperforming restaurant footprint, failed or ill-advised strategic initiatives, and increased competition within the restaurant industry," said Red Lobster CEO Jonathan Tibus.
The list of potentially affected locations spans a wide geographic area, including major cities and smaller towns. For example, in California, restaurants in Citrus Heights, Milpitas, and San Bernardino are on the list, while in Florida, locations in Orlando, Fort Lauderdale, and Miami are also at risk. In Ohio, seven locations, including those in Parma, Strongsville, and Toledo, face potential closure.
The Orlando, Florida-based company operates approximately 570 restaurants and employs around 36,000 people in the U.S. and Canada. Despite its extensive reach, Red Lobster reported a significant operating loss of over $11 million in the third quarter of 2023. This loss was partly attributed to the "Ultimate Endless Shrimp" promotion, which was made a permanent fixture on the menu in an effort to drive traffic. "We knew the price was cheap, but the idea was to bring more traffic into the restaurants," said Ludovic Regis Henri Garnier, CFO at Thai Union, Red Lobster's parent company. "So we wanted to boost our traffic, and it didn't work."
The financial strain has been compounded by the need to address a "bloated and underperforming restaurant footprint," as Tibus described in the bankruptcy documents. Efforts to streamline operations and focus on profitable locations have been met with mixed results. The situation is further complicated by the competitive nature of the restaurant industry, which has seen an influx of new dining options and evolving consumer preferences.
In addition to the lease issues, Red Lobster's bankruptcy filing detailed various other challenges, including operational inefficiencies and strategic missteps. The company's efforts to renegotiate leases are seen as a critical step in its bid to stabilize its finances and avoid further closures. However, the path forward remains uncertain, with significant hurdles to overcome.
Here's a full list listed in its bankruptcy documents. Some of them have already closed.
Alabama
- 2620 McFarland Blvd. E, Tuscaloosa
Arizona
- 2500 S. Beulah Blvd., Flagstaff
- 7921 W. Bell Rd., Peoria
- 2810 North 75th Ave., Phoenix
- 5061 North Oracle Road, Tucson
- 1521 S. Yuma Palms Parkway, Yuma
Arkansas
- 3885 N Shiloh Drive, Fayetteville
- 7401 Rogers Ave., Fort Smith
- 4500 Central Avenue, Hot Springs
- 8407 W. Markham Street, Little Rock
California
- 6231 Sunrise Blvd, Citrus Heights
- 503 E. Calaveras Blvd., Milpitas
- 928 W. Huntington Ave., Monrovia
- 4095 Century Blvd, Pittsburg
- 1720 N Main Street, Salinas
- 195 E. Hospitality Lane, San Bernardino
- 2040 Aborn Road, San Jose
- 2283 W. March Lane, Stockton
- 1180 Admiral Callaghan Lane, Vallejo
Colorado
- 4925 N Academy Blvd, Colorado Springs
- 3301 S. College Ave., Fort Collins
- 2885 23rd Ave, Greeley
- 3306 N Elizabeth Street, Pueblo
Connecticut
- 320 Universal Drive North, North Haven
Delaware
- 309 Rocky Run Parkway, Talleyville
Florida
- 340 West SR 436, Altamonte Springs
- 2475 Highway 27 South, Clermont
- 26320 U.S. 19th North, Clearwater
- 2000 University Dr., Coral Springs
- 5950 N Federal Hwy, Fort Lauderdale
- 3801 Cleveland Ave, Fort Myers
- 326 Miracle Strip Pkwy S.W., Fort Walton Beach
- 5690 Irlo Bronson Memorial Hwy, Kissimmee
- 6638 Lake Worth Road, Lake Worth
- 3706 North Road 98, Lakeland
- 10010 US Highway 441, Leesburg
- 2355 W. New Haven Ave., Melbourne
- 215 E Merritt Island Causeway, Merritt Island
- 11550 SW 88th St., Miami
- 13300 Biscayne Blvd., North Miami
- 32 Blanding Blvd., Orange Park
- 617 N. Alafaya Trail, Orlando
- 9892 International Drive, Orlando
- 8003 Golden Sky Lane, Orlando
- 5110 N 9th Ave., Pensacola
- 8909 US Highway 19, Port Richey
- 2328 Commercial Way, Spring Hill
- 6151 34th Street North, St. Petersburg
- 11601 N. Dale Mabry, Tampa
- 3830 Wedgewood Lane, The Villages
- 2201 Palm Beach Lakes Blvd., West Palm Beach
Georgia
- 2679 Adams Farm Dr., Columbus
- 6550 Tara Blvd, Jonesboro
- 700 Shorter Ave., Rome
- 2579 Cobb Parkway, Smyrna
Illinois
- 1604 N. State Road, Route 50, Bourbonnais
- 1901 N. Prospect Ave., Champaign
Indiana
- 1900 S. US 31 By-Pass, Kokomo
- 4353 Franklin Street, Michigan City
- 5400 National Road East, Richmond
Iowa
- 1100 Buckeye Ave., Ames
Kansas
- 9475 Metcalf Avenue, Overland Park
- 1915 S Wanamaker Road, Topeka
Kentucky
- 4639 Outer Loop, Louisville
- 5151 Hinkleville Road, Paducah
Maryland
- 2314 N Salisbury Blvd, Salisbury
Michigan
- 4109 Wilder Road, Bay City
- 3920 28th St., SE Kentwood
- 479 Telegraph Road, Waterford
Minnesota
- 1951 American Blvd. West, Bloomington
- 8900 Golden Valley Road, Golden Valley
Mississippi
- 895 Barnes Crossing Road, Tupelo
Missouri
- 12235 Saint Charles Rock Rd, Bridgeton
- 3885 N Shiloh Drive, Fayetteville
- 4328 Noland Rd, Independence
- 3131 Range Line Rd., Joplin
New Jersey
- 3003 Route 130 South, Delran
- 4411 Black Horse Pike, Mays Landing
- 211 Route 17 S, Paramus
New York
- 2090 Bartow Ave., Bronx
- 801 Sunrise Highway, Copiague
- 295 E Fairmount Avenue, Lakewood
- 5 Times Square, Manhattan
- 750 Upper Glen Street, Queensbury
- 2220 Nesconset Highway, Stony Brook
North Carolina
- 1805 Walnut Street, Cary
- 304 A Western Blvd., Jacksonville
Ohio
- 6500 Miller Lane, Dayton
- 2340 Tiffin Ave., Findlay
- 1422 Reynolds Road, Maumee
- 255 Graff Road, S.E., New Philadelphia
- 7607 Day Drive, Parma
- 17227 Southpark Center, Strongsville
- 4990 Monroe St., Toledo
Pennsylvania
- 935 Wayne Ave, Chambersburg
- 425 W. DeKalb Pike, King of Prussia
- 4766 McKnight Rd., Pittsburgh
South Carolina
- 1270 Knox Abbott Drive, Cayce
- 2080 Sam Rittenburg Blvd, Charleston
Tennessee
- 2131 Northgate Mall Dr, Chattanooga
Texas
- 3815 S. Lamar Blvd., Austin
- 109 W. Anderson Lane, Austin
- 5825 South Padre Island Drive, Corpus Christi
- 603 N. Cockrell Hill Road, Duncanville
- 3056 Preston Road, Frisco
- 2760 S. Highway 6, Houston
- 5034 50th Street, Lubbock
- 7800 Bedford-euless Road, North Richland Hills
- 5815 N. Loop 1604 West, San Antonio
- 1381 S.W. Loop 410, San Antonio
- 17415 US 281 North, San Antonio
- 100 Ih 35 North, San Marcos
- 18446 Interstate 45 South, Shenandoah
- 3002 Saint Michael Drive, Texarkana
- 4401 Kemp Blvd., Wichita Falls
Virginia
- 555 S. Van Dorn Street, Alexandria
- 4115 Chesapeake Square Blvd, Chesapeake
- 10325 Fairfax Blvd., Fairfax
- 3109 Spotsylvania Mall Drive, Fredericksburg
- 5400 National Road East, Richmond
- 8009 West Broad Street, Richmond
- 709 Independence Blvd., Virginia Beach
- 821 Lynnhaven Pkwy, Virginia Beach
Washington
- 4231 196th SW, Lynwood
- 3208 NW Randall Way, Silverdale
West Virginia
- 3705 Murdock Ave., Parkersburg
