A Texas Seafood Favorite Is Now In Real Danger of Closing Forever

There are lots of great places across Texas that serve up great seafood. Makes sense. We're not too far from the coast so getting fresher seafood isn't a problem.

Texans are fans of crab, lobster, shrimp, and many more seafood staples. One chain restaurant that has been serving up seafood favorites for decades across Texas is in danger of closing for good.

Red Lobster Troubles

Many businesses are struggling in this current economic climate. They are struggling to make a profit, they are struggling to meet labor costs, and they are struggling with the rising prices of food or other goods.

It's not an easy time for businesses nor is it an easy time for consumers because everything is costing so much. For Red Lobster, they are looking into restructuring some of their debt which could include a bankruptcy filing (businessinsider.com).

The main reason for looking into debt restructuring is because they are struggling to keep up with various lease agreements and also with paying their employees. If you can't pay rent or your employees, that's obviously a big problem.

All You Can Eat Shrimp

Another issue Red Lobster is facing is an 11 million dollar loss in the third quarter of 2023. What contributed to that loss? A promotion that became way more popular than they anticipated, was Ultimate Endless Shrimp.

For $20, you could order, and eat, as much shrimp as you wanted in one sitting. Because of the unexpected popularity, they had to raise the price to $25 but also made it a permanent part of the menu.

Unfortunately for Red Lobster, that menu item cost them too much money in the long run.

The Future

What does this mean for the future of Red Lobster? Well, it's really too early to tell. But there is always the possibility of the company having to close some stores.

Let's hope that doesn't happen as folks in Texas will miss getting full too soon on Cheddar Bay Biscuits and then ordering an Ultimate Feast.

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