RED Lobster’s newest CEO is touting the chain’s ‘comeback’ as he aims to turn the company around following its bankruptcy.
Damola Adamolekun, 36, took over as CEO for the seafood chain in August 2024 and says he has big plans for the once-failing restaurant.
Damola Adamolekun (left) plans to restore Red Lobster to financial stability[/caption]
Red Lobster filed for bankruptcy in 2024[/caption]
In May 2024, Red Lobster filed for bankruptcy, as the company struggled to attract customers and had incurred a $76 million loss in 2023 due to an all-you-can-eat shrimp promotion.
A year later, Adamolekun stated that the company had turned things around and now expects a positive net income in the 2026 fiscal year, Fortune reported.
“I think this is going to be the greatest comeback in the history of the restaurant industry,” Adamolekun recently said on The CEO Playbook podcast.
“Of course it’s risky; I took over a company that’s bankrupt and had a lot of problems.”
Adamolekun has extensive experience in turning companies around.
In 2020, the CEO took over P.F. Changs, an asian food chain, and helped return the company to profitability.
Under his leadership, the Asian-Fusion food chain began generating $1 billion in revenue.
The National Restaurant Association called it “a crazy feat on its face, given the challenges the restaurant and hospitality industry is recovering from: the worst pandemic in 100 years, supply-chain challenges, a shallow labor pool, and a still-uncertain economy.”
His work with the company led to his being named one of Fortune’s 100 Most Powerful People in Business.
Adamolekun, a former Goldman Sachs investment banker, said he’s ready to taken on the challenge at Red Lobster.
“Investing is the business of risk assessment, and I think you should manage your career the same way,” he said.
“Risk on its own isn’t something to avoid. You just need adequate return.”
To help save the franchise, Adamolekun said there are a few things he’ll permanently change about the company – starting with the shrimp promotion.
The $20 endless shrimp promotion made headlines when it suddenly became a trend to go to Red Lobster and eat as many shrimp as possible.
Timeline leading to Red Lobster’s financial woes
Red Lobster has been a staple in the United States ever since its launch in 1968. But the business has recently been hit with financial troubles and it is now reportedly considering filing for bankruptcy.
1968: Bill Darden opened the first Red Lobster as a family-owned restaurant in Lakeland, Florida.
1970: Red Lobster caught the attention of General Mills and became backed by their resources. Stores start to rapidly open across the nation
1974: Popcorn shrimp debuts
1983: Red Lobster’s first Canadian restaurant opens
1984: Chain hosts its first-ever Lobster Fest
1992: Famous Cheddar Bay Biscuits are unveiled for the first time
1995: General Mills creates a spin-off of its restaurant division, known as Darden Restaurants, Inc.
2003: The yearly tradition of Endless Shrimp starts
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: Darden Restaurants, Inc. sells Red Lobster to Golden Golden Gate Capital for $1.2 billion.
2016: Thai Union Group pays $575 million for a 25% stake in the chain.
2020: Thai Union Group purchases a 49% majority stake in the chain from Golden Golden Gate Capital for an undisclosed amount of money and Red Lobster reports record-breaking profits, pulling 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 for 2023, majority shareholder Thai Union Group announces it is looking to sell its shares. Red Lobster filed for Chapter 11 Bankruptcy in May.
The promotion was one of the primary factors that contributed to the company’s bankruptcy.
The CEO said he “knows how to do math,” and will never let that happen again.
He plans on bringing in more experienced restaurant-industry executives and to “inject more energy” into Red Lobster locations.
To do so, he plans on changing the decor, lighting, and music.
Adamolekun plans to lower the check for customers and to limit the menu to just its best-performing dishes.
“We should be the best deal for the best lobster because we do have the best product,” Adamolekun told TODAY.
After shutting down dozens of locations last year, Red Lobster now operates 500 restaurants.
