Eat up, that shrimp cost Red Lobster millions of dollars. Red Lobster’s “Ultimate Endless Shrimp” deal was way more popular than expected, assisting in the $11 million loss in the third quarter.
The limited-time promotional deal was great for guests, with the option of picking two types of shrimp to enjoy nonstop for $20. It landed a permanent spot on Red Lobster menus in June 2023, which ended up being a costly decision.
Red Lobster’s parent company, Thai Union Group, said that the chain is now headed toward a $20 million loss for 2023. Thai Union Group CFO Ludovic Regis Henri Garnier said in an earnings report call that the company knew the initial price for the endless-shrimp deal was cheap as it was intended to draw customers into restaurants but orders ultimately exceeded expectations.
“We wanted to boost our traffic, and it didn’t work,” Garnier said to investors. “We want to keep it on the menu. And of course, we need to be much more careful regarding what are the entry points and what is the price point we are offering for this promotion.”
The endless shrimp deal has since been raised to $25 and lets guests choose between two shrimp selections throughout their meals, which also includes a side and warm Cheddar Bay Biscuits.
Source: https://www.restaurantbusinessonline.com/operations/red-lobster-goes-overboard-endless-shrimp-deal