RED LOBSTER fans screamed after the mass closures were announced.
Some are now demanding money from the seafood chain, claiming they still have gift cards that will not be valid due to the closures.
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“@RedLobster you guys owe me some $$ since they closed the restaurants and I have gift cards,” one customer wrote on X, formerly Twitter, this week.
The brand promptly responded to the frustrated fan, asking him to send a direct message for further assistance.
“Please send us a private message so a member of our team can speak with you directly,” Red Lobster responded.
“Puppy, there goes all those Red Lobster gift cards I saved up,” echoed another.
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“Me running to Red Lobster to spend all my gift cards…” a third commented alongside a clip of someone running.
The three customers likely aren’t the only ones finding themselves in a bind with gift cards after Red Lobster shocked many with the sudden confirmation of the closure of at least 87 locations this month.
That number could reach around 100 nationwide — and it’s unclear whether the impending shutdowns are permanent or temporary.
Several customers saw paper posters posted outside selected locations that confirmed they were no longer operational, for Restaurant business.
“This location is closed,” said signs on several Red Lobsters.
“We look forward to serving you at another Red Lobster location in the future.”
Approximately 48 Red Lobster restaurants have already been confirmed as closed, per USA today.
Clearance sales are ongoing at closed locations.
More closures are possible in the coming weeks, and the company is expected to file for Chapter 11 bankruptcy as soon as next week, according to a report from Wall Street Journal.
The brand seeks to restructure and resolve its debts after some losses in recent years.
Timeline Leading to Red Lobster’s Financial Troubles
Red Lobster has been a staple in the United States since its launch in 1968. But the company has recently been hit by financial troubles and is now considering declaring bankruptcy.
1968: Bill Darden opened the first Red Lobster as a family restaurant in Lakeland, Florida.
1970: Red Lobster caught the attention of General Mills and became supported by its resources. Stores begin to open quickly across the country
1974: Popcorn shrimp debut
1983: Red Lobster’s first Canadian restaurant opens
1984: Network organizes its first Lobster Fest
1992: The famous Cheddar Bay biscuits are revealed for the first time
1995: General Mills creates a spin-off of its restaurant division, known as Darden Restaurants, Inc.
2003: The annual Endless Shrimp tradition begins
2006: “Today’s Fresh Fish” menu makes its debut, bringing fresh, regional seafood to Red Lobsters everywhere
2010: Red Lobsters everywhere see an interior makeover inspired by the historic fishing village of Bar Harbor, Maine.
2014: sells Red Lobster to Golden Golden Gate Capital for $1.2 billion.
2016: Thai Union Group pays US$575 million for a 25% stake in the chain.
2020: Thai Union Group buys a 49% majority stake in the chain from Golden Golden Gate Capital for an undisclosed amount of money and Red Lobster reports record profits, raking in $6.5 billion for the year.
2023: Endless Shrimp becomes a permanent part of the menu
2024: Red Lobster announces a $22 million loss in 2023, majority shareholder Thai Union Group announces it intends to sell its shares, and the Thai Union group reportedly begins considering filing for Chapter 11 bankruptcy for Red Lobster.
SHRIMP DEBACLE
Red Lobster had an operating loss of $12.5 million in the fourth quarter of 2023 and made about $2.2 billion in total profit for the year – an 8% drop from the previous year.
It suffered badly after an all-you-can-eat shrimp deal didn’t go as planned, a result that Red Lobster’s minority investor, Thai Union Group, blamed for the drop in sales.
Fans could get as many shrimp as they wanted for $20 only until June 2023, but it became so popular they extended it.
The promotion went viral and the influx of customers taking advantage of the deal was seemingly unexpected for the brand, leading to an $11 million loss in the third quarter of last year.
It’s still on the menu at open locations, but is offered for $25 all-you-can-eat.
Red Lobster’s mass closures come after several competitors made similar moves.
Applebee’s recently confirmed it would close at least 35 locations in 2024.
Cracker Barrel also announced at least three closing locations in California, Oregon and South Carolina last month.
This story originally appeared on The-sun.com read the full story
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