OAN’s James Myers
9:07am – Thursday, November 30, 2023
Red Lobster’s unlimited shrimp promotion deal reportedly cost the food chain $11 million.
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Red Lobster’s parent company, Thai Union Group, said the seafood chain lost $11 million in the third quarter and is on track to report a loss of $20 million in 2023.
“We wanted to increase traffic, but it didn’t work out,” said Ludovic Régis-Henri Garnier, chief financial officer of Thai Union Group. restaurant business magazine.
Meanwhile, Red Lobster has been running an all-you-can-eat promotion for years, but this year they made the promotion permanent, compared to previous years when it was temporary.
The move was aimed at increasing traffic in the third and fourth quarters, when Red Lobster’s business tends to decline.
Garnier also said there are no plans to take the promotion off the menu completely.
“I want to keep it on the menu,” he said.
“And of course we need to be more cautious about the entry points and prices we offer in this promotion.”
The seafood chain currently has 670 stores across the United States, but has struggled to turn a profit due to rising labor costs and soaring food prices due to inflation.
Thai Union Group acquired Red Lobster from Golden State Capital in 2020.
according to bloomberg newsIt has been reported that Thai Union Group may sell its stake in Red Lobster if profits do not improve.
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