{"id":111112,"date":"2024-10-06T16:44:04","date_gmt":"2024-10-06T09:44:04","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=111112"},"modified":"2024-10-06T16:44:04","modified_gmt":"2024-10-06T09:44:04","slug":"red-lobsters-new-ceo-damola-adamolekun-admits-the-endless-shrimp-deal-caused-chaos","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=111112","title":{"rendered":"Red Lobster\u2019s new CEO Damola Adamolekun admits the endless shrimp deal caused \u201cchaos\u201d"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div>\n<p>Red Lobster\u2019s new CEO Damola Adamolekun admitted that its $20 endless shrimp offering \u2014 which contributed to the restaurant filing for bankruptcy \u2014 stressed out employees and created \u201ca lot of chaos.\u201d <\/p>\n<p>Adamolekun, 35, was tapped to take over the floundering company in August after the Orlando-based chain suddenly shuttered 100 locations and filed for Chapter 11 protection. <\/p>\n<figure class=\"nyp-slideshow-modal-image wp-block-image aligncenter size-large\"><figcaption>The 35-year-old CEO was tapped to lead Red Lobster after the company filed for Chapter 11 protection.  <span class=\"credit\">PF Changs<\/span><\/figcaption><\/figure>\n<figure class=\"nyp-slideshow-modal-image wp-block-image aligncenter size-large\"><figcaption>Red Lobster\u2019s new CEO admitted the $20 endless shrimp offering caused \u201ca lot of chaos.\u201d <span class=\"credit\">AP<\/span><\/figcaption><\/figure>\n<p>The \u201cendless shrimp\u201d promotion <a href=\"https:\/\/www.redlobster.com\/our-story\/our-history\/\" target=\"_blank\" rel=\"noreferrer noopener\">first launched in 2004<\/a> and originally just lasted one week but a sea of mayhem happened after the company made it a permanent item on the menu in May 2023. Leaders underestimated how popular it would be and the company lost an estimated $20 million that year.<\/p>\n<p>\u201cYou stress out the kitchen. You stress out the servers. You stress out the host,\u201d <a href=\"https:\/\/www.cnn.com\/2024\/10\/04\/business\/red-lobster-ceo-restaurants\/index.html\">Adamolekun told CNN. <\/a>\u201cPeople can\u2019t get a table. It creates a lot of chaos operationally.\u201d<\/p>\n<aside class=\"single__inline-module aligncenter wp-block-nypost-editor-primary-tag\">\n<\/aside>\n<p>The Orlando-based company filed for bankruptcy protection in May 2024. <\/p>\n<p>Then-CEO Jonathan Tibus blamed a previous CEO, Paul Kenny, for making the endless shrimp promotion permanent for customers \u201cdespite significant pushback from other members of the company\u2019s management team,\u201d <a href=\"https:\/\/nypost.com\/2024\/05\/20\/business\/red-lobster-files-for-bankruptcy-after-losing-millions-on-ill-fated-all-you-can-eat-shrimp-promotion\/\">according to the bankruptcy filing<\/a>.<\/p>\n<p>The filing added that the chain suffered major shrimp shortages and caused issues with the \u201ccompany\u2019s normal supply chain and demand planning processes.\u201d<\/p>\n<figure class=\"nyp-slideshow-modal-image wp-block-image aligncenter size-large\"><figcaption>The endless shrimp deal was much more popular than leaders expected it. to be. <span class=\"credit\">TikTok\/@hayestack<\/span><\/figcaption><\/figure>\n<p>In August, a US bankruptcy judge approved the company\u2019s reorganization plan so it could exit Chapter 11 bankruptcy protection and sell to a lender group led by asset manager Fortress. <\/p>\n<p>Red Lobster had 650 locations before the endless shrimp promotion caused the largest shareholder, Thai Union, to <a href=\"https:\/\/nypost.com\/2024\/05\/20\/business\/red-lobster-files-for-bankruptcy-after-losing-millions-on-ill-fated-all-you-can-eat-shrimp-promotion\/\">write off $530 million<\/a> in the fourth quarter of 2023. During the bankruptcy process, more than 50 locations were even <a href=\"https:\/\/nypost.com\/2024\/09\/05\/business\/red-lobster-to-exit-chapter-11-soon-after-judge-approves-sale-to-new-owner\/\" target=\"_blank\" rel=\"noreferrer noopener\">auctioning equipment<\/a> as part of the liquidation. <\/p>\n<p>Despite the hefty money issues, Red Lobster still kept its <a href=\"https:\/\/nypost.com\/2024\/06\/05\/business\/red-lobster-could-shut-down-135-more-restaurants-due-to-rent\/\">three-level location<\/a> in Times Square which costs $2.2 million each year to rent.<\/p>\n<p>Now, only 545 <a href=\"https:\/\/www.instagram.com\/p\/DAEdbcRveNo\/\">locations remain<\/a> in the US.<\/p>\n<figure class=\"nyp-slideshow-modal-image wp-block-image aligncenter size-large\"><figcaption>The company shut down nearly 100 locations due to losses. <span class=\"credit\">AP<\/span><\/figcaption><\/figure>\n<p>Adamolekun, previously PF Chang\u2019s CEO, hopes to have smooth sailing ahead with a long-term investment plan that includes a commitment of more than <a href=\"https:\/\/nypost.com\/2024\/09\/05\/business\/red-lobster-to-exit-chapter-11-soon-after-judge-approves-sale-to-new-owner\/\">$60 million in new funding.<\/a><\/p>\n<p>\u201cRed Lobster has a tremendous future, and I cannot wait to get started on our plan with the company\u2019s more than 30,000 team members across the USA and Canada,\u201d Adamolekun said in September.<\/p>\n<p>Red Lobster has had<a href=\"https:\/\/nypost.com\/2024\/05\/20\/business\/red-lobster-files-for-bankruptcy-after-losing-millions-on-ill-fated-all-you-can-eat-shrimp-promotion\/\"> five CEOs since 2021<\/a> and in its 56-year history, there have been multiple ownership changes including being sold to General Mills, Darden Restaurants and a private equity firm in 2014.\u00a0<\/p>\n<p>Adamolekun said that endless shrimp may return to the menu later only if it doesn\u2019t cause the same problems.<\/p>\n<p>\u200b\u200b\u201cI never want to say never, but certainly not the way that it was done,\u201d he said. \u201cWe won\u2019t have it in a way that\u2019s losing money in that fashion and isn\u2019t managed.\u201d<\/p>\n<\/p><\/div>\n<p><script async src=\"\/\/www.instagram.com\/embed.js\"><\/script><br \/>\n<br \/><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><div data-type=\"_mgwidget\" data-widget-id=\"1660802\">\r\n<\/div>\r\n<script>(function(w,q){w[q]=w[q]||[];w[q].push([\"_mgc.load\"])})(window,\"_mgq\");\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/nypost.com\/2024\/10\/06\/business\/red-lobsters-new-ceo-damola-adamolekun-admits-the-endless-shrimp-deal-caused-chaos\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Red Lobster\u2019s new CEO Damola Adamolekun admitted that its $20 endless shrimp offering \u2014 which contributed to the restaurant filing for bankruptcy \u2014 stressed out employees and created \u201ca lot &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=111112\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-111112","post","type-post","status-publish","format-standard","hentry","category-business","entry"],"_links":{"self":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/111112","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=111112"}],"version-history":[{"count":0,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/111112\/revisions"}],"wp:attachment":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=111112"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=111112"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=111112"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}