Red Lobster Continues Restaurant Closures Amid Financial Difficulties
Red Lobster is continuing to close a number of its restaurants following the company's financial struggles and May 2024 bankruptcy filing. The chain's restaurant footprint has significantly decreased.
Seafood chain Red Lobster is continuing to close restaurants following the company's financial difficulties and Chapter 11 bankruptcy filing in May 2024. The chain's restaurant footprint has shrunk to approximately 540 locations nationwide, down from over 700.
Closures scheduled for January 2026 include multiple locations across the United States. Among these are Red Lobster's Times Square restaurant in New York, which closed after 23 years, and several sites in Alabama, Florida, Pennsylvania, and Kansas.
The financial troubles have been partly attributed to the "Ultimate Endless Shrimp" promotion, which reportedly contributed to an estimated $19 million loss for the chain. Red Lobster recently announced it was bringing back the same promotion after a successful test run.
Recent closures have drawn attention, such as the shuttering of Red Lobster's oldest continuously operating restaurant in Tallahassee, Florida, after 56 years. The company has offered transfers and additional pay to employees affected by the closures to aid their transition.