One of America’s favorite casual dining chains has had a rocky few months—and they’re blaming it on shrimp.
In May, Red Lobster filed for bankruptcy after more than 50 locations closed amid massive losses from its too-popular Endless Shrimp promotion. Then in August, the seafood chain reeled in a new CEO: Damola Adamolekun, the 35-year-old former P.F. Chang’s chief executive.
“This is, without exaggeration, one of the most important companies in American history,” Adamolekun told CNN. “There were certainly big mistakes made over the last few years.”
But Since taking the corner office, Adamolekun has been on a mission to give Red Lobster back its sea legs. One of the major mistakes he was referring to was the chain’s Endless Shrimp promotion. While wildly popular with guests, it led the company to millions in operating losses. Plus, it put undue stress on servers and kitchen staff, Adamolekun told CNN.
Under Adamolekun’s leadership, the company plans to make massive changes, like repairing restaurants and truncating its menu, which he said had too many dishes. They’re also “done closing restaurants,” Adamolekun said, and the chain currently has 545 locations. This is all part of a more than $60 million plan to keep the seafood chain from drowning again.
In addition to structural and menu changes, Red Lobster is also refreshing its C-suite. Just in the past week, the seafood chain has started stacking its executive team with seasoned restaurant leaders, both with decades of experience.
On Tuesday, the company announced Bob Baker would take over as chief financial officer. He has a long history of restaurant leadership having previously served as CFO of Checkers & Rally’s in Tampa, Fla., Benihana in Miami, and Cafe Rio Mexican Grill. Before that, he held finance, operations, M&A, and accounting positions with Coins2Day 1000 fast food corporation Yum! Brands. He replaces Stephanie Medley, who had been interim CFO since February and was previously chief strategy and financial officer of Ruby Tuesday.
Then on Wednesday, Red Lobster also announced the appointment of its new chief marketing officer, Nichole Robillard. She most recently led barbecue chain Smokey Bones through a rebranding and business transformation period, which could serve Red Lobster well as it claws its way out of a financial downturn. During its bankruptcy period, Red Lobster’s marketing was handled by Sara Bittorf, a specialist in turnarounds and restructurings, according to Marketing Dive.
Red Lobster didn’t respond to Coins2Day’s request for comment about the new leadership appointments or whether there would be more C-suite announcements in the near future.
In mid-September, Adamolekun reassured customers and investors the brand was swimming in the right direction as it exited Chapter 11 bankruptcy.
“Red Lobster is now a stronger, more resilient company,” he said in a Sept. 16 statement. “And today is the start of a new chapter in our history.”
