For those outside of the coastal states who think that the once great franchise known as Red Lobster was “really good” seafood (here’s looking at @JesseKelly), well, today is a sad, sad day:
Red Lobster Considers Bankruptcy to Deal With Leases and Labor Costs
From the story above by YahooFinance:
Red Lobster has been getting advice from law firm King & Spalding, said the people, who asked not to be identified discussing a private matter. The dining chain is considering a possible Chapter 11 filing to shed some long-term contracts and renegotiate a swath of leases, the people said.
Red Lobster’s cash flows have been weighed down by onerous leases and labor costs, among other issues. Restructuring discussions are ongoing and a final decision hasn’t been made, they said. Filing for bankruptcy would allow the company to keep operating while it works on a debt-cutting plan.
The leasing costs are high, the cost of labor is high, but what is really bad are the “other issues” such as seafood costs.
Even in the seafood paradise of Florida we’re seeing fresh grouper as high as $34.99 per pound (outrageous), making us don our hunting caps and paddle our canoes out into the Gulf of Mexico to fish for cheaper alternatives.
More about the history of the franchise from the article linked above:
Red Lobster traces its roots to a single restaurant in Lakeland, Florida in 1968, according to its website. The company introduced its popular cheese-flavored biscuits in 1992, and Red Lobster now boasts hundreds of locations across the US and Canada, along with international franchises.
The biscuits are just okie dokey, but the attraction was the unlimited shrimp specials. To be honest, most of their meals were just okay, nothing special compared to local cuisine palaces like Walt’s, etc.
In fact the Red Lobster in Sarasota failed not just because of Covidmania, but due to competition.
If a company can present local alternative with locally or regionally caught seafood, it curb stomps the chains every time. Except for Long John Silvers which has a unique grease flavor which makes their deep fried everything sort of tasty in a weird 11 p.m. Friday night had a few beers sort of way.
Good luck to an American icon hopefully starting over and thanks again to Jay Powell, Janet Yellen, and their inflationary crew for killing another company with their absurd inflationary policies.
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