Damola Adamolekun, the new chief executive of Red Lobster, is faced with the challenge of turning around a chain that has been in turmoil. Born in Nigeria and raised in various countries before moving to the United States, Red Lobster was a staple for Adamolekun’s family. Red Lobster, once a successful casual dining chain, has faced more than 100 restaurant closures, thousands of layoffs, a revolving door of CEOs, and Chapter 11 bankruptcy. Adamolekun is determined to climb out of this hole and bring the chain back to its former glory.
Adamolekun was drawn to Red Lobster not only because of its history but also because of its cultural impact. Celebrities like Chris Rock and Nicki Minaj worked there before they became famous, and Beyoncé even mentioned it in her hit song “Formation.” After Red Lobster filed for bankruptcy, Flava Flav ordered the entire menu in an attempt to save the company. Adamolekun is focused on making incremental changes to improve the chain, including improving table service, simplifying the menu, and updating dining rooms.
Red Lobster has struggled to attract middle-income consumers and is facing competition from casual dining rivals like Olive Garden. Adamolekun wants to maintain the chain’s existing customer base, while also appealing to a new generation of diners. By introducing new dishes and creating a more exciting atmosphere in the restaurants, he hopes to attract a wider range of customers. While some analysts believe a bolder strategy is needed for Red Lobster’s growth, Adamolekun plans to make gradual changes to improve the chain’s performance.
Under Thai Union Group’s ownership, Red Lobster experienced a decline that was accelerated by a toxic and demoralizing working environment. Thai Union’s focus on shrimp, rather than restaurant operations, led to the firing or resignation of many longtime Red Lobster leaders. Red Lobster made the $20 endless shrimp deal a permanent menu item, which ended up backfiring as service slowed and customers took advantage of the offer. Thai Union divested from the chain, taking a $530 million loss on its investment.
Adamolekun’s experience includes leading P.F. Chang’s through the Covid-19 pandemic, where he was able to stabilize the chain’s performance. He joined Red Lobster as CEO after doing consulting work for the chain for Fortress Investment Group. His goal is to inject energy into Red Lobster and address issues such as technology, staffing levels, and customer complaints. A brand refresh program is in the works to improve the restaurants’ atmosphere while catering to both traditional customers and a new generation of diners.
Adamolekun aims to bring Red Lobster back to its former success by making gradual changes to improve the chain’s performance. Despite the challenges faced by the chain, he remains optimistic about its future. By focusing on customer experience, menu improvements, and a refreshed brand image, Adamolekun hopes to attract a wider range of customers and ensure the long-term success of Red Lobster.
