Red Lobster to Close Times Square Location
Red Lobster is set to close its flagship Times Square restaurant on June 14, marking the end of a 23-year presence in a bustling area popular with tourists.
According to reports, ongoing construction at the restaurant’s location on the corner of 41st Street and Seventh Avenue has significantly decreased customer traffic, making it untenable for the establishment to continue operating.
Red Lobster acknowledged the closure as a tough decision, emphasizing the impact of extensive construction work on visibility and access. They noted that with plans to convert the building into residential space, it was no longer feasible to maintain their restaurant there.
Employees at the Times Square location will be given the chance to transfer to other Red Lobster restaurants, along with extra compensation to assist in their move.
The company expressed gratitude towards both employees and patrons, recognizing the special role this restaurant played in their history.
This closure signifies the end of Red Lobster’s only New York location. Since its opening in 2003, the restaurant has catered to tourists, office workers, and theatergoers, and it became known for its extravagant promotions, including a free lobster giveaway earlier this year.
In recent years, Red Lobster has shuttered more than 100 stores in an effort to streamline operations. Reports from 2024 indicated that the owner of 5 Times Square was seeking an annual rent of $2.2 million, which added to the challenges of keeping the location profitable.
Staff had previously been optimistic about the restaurant’s performance, describing it as a “high-performing business.” However, this closure follows Red Lobster’s filing for Chapter 11 bankruptcy in May 2024, with further closures anticipated as the company restructures.
Despite emerging from bankruptcy, Red Lobster has indicated that more underperforming locations may be at risk. The Orlando-based chain operates over 500 restaurants nationwide, but finished 2025 with sales of $1.56 billion—a decrease of 6.2% from the previous year. Recently, it was also reported that the oldest location in Tallahassee, Florida, closed its doors after 56 years in business.
