Red Lobster's endless shrimp promotion, once a seasonal draw, became a year-round money pit when shrimp prices spiked in 2013. Influencers and eating challenges went viral, driving demand while the chain lost an estimated $44 million in a single year, leading to bankruptcy.
America's largest seafood chain, Red Lobster, just filed for bankruptcy, and it's all because of shrimp. Why? So you're about to go on a date, you don't wanna look cheap, and that fancy steakhouse down the road, it's a bit outta your price range. The solution, Red Lobster. With over 730 locations, Red Lobster is the king of seafood casual dining, and the crown jewel of their marketing, endless shrimp at Red Lobster. For 20 years, they've seasonally offered all-you-can-eat shrimp, and it works. It explodes their customer base. But seafood is expensive, and when shrimp prices spike, 2013, Red Lobster's menu prices start to look more like that expensive steakhouse. They lose customers, and Red Lobster starts getting desperate. So they offer year-round all-you-can-eat shrimp promotions. And it works. In fact, it works so well that it's a disaster. It becomes a social media sensation where influencers try to outeat one another. My goal is to eat 45 shrimps tonight. Endless shrimp is so popular, they're on pace to lose $44 million in just one year. And today they've declared bankruptcy.
