New Red Lobster CEO Damola Adamolekun: Endless shrimp deal created ‘chaos’ but might come back
Adamolekun mentioned that the seafood chain’s $20 endless shrimp promotion led to stress among the staff and customers but didn’t completely rule out its return in a different format.
The new chief executive of Red Lobster expressed reservations about the endless shrimp deal, which reportedly caused an $11 million loss for the company during its first quarter.
In a recent interview with CNN, CEO Damola Adamolekun shared his initial reaction to the restaurant chain’s decision to make the $20 endless shrimp deal a permanent menu item last year. His immediate thought was, “That’s a costly product to offer continuously.”
Last year, Red Lobster introduced all-you-can-eat shrimp as a permanent option after having it available for limited periods for the past twenty years. Adamolekun noted that this promotion caused considerable operational disruptions at both the corporate and restaurant levels as customers flocked for unlimited shrimp.
“It puts pressure on the kitchen, on the servers, on the hosts. Customers are unable to find tables,” Adamolekun explained to CNN. “Operational chaos ensues.”
Despite the challenges it created, he did not completely dismiss the chance of the promotion returning, albeit differently.
“I don’t want to say it will never happen again, but definitely not in its previous form,” Adamolekun clarified. “We will avoid losing money in that way and ensure better management.”
Introducing Damola Adamolekun
Damola Adamolekun, age 35, was appointed as Red Lobster’s new CEO in August.
A native of Nigeria, he has prior experience as CEO of P.F. Chang’s, Chief Strategy Officer there, and was a partner at the New York-based investment firm Paulson & Co.
He recounted to CNN that he experienced Red Lobster for the first time at a location in Springfield with his family after church on a Sunday. He aims to revive what he refers to as the “first truly successful casual dining chain in America at scale.”
Red Lobster, founded by Bill Darden, opened its doors in 1968 with its inaugural restaurant in Lakeland, Florida.
This article has been revised to correct an error.