Red Lobster Is Looking To Adapt to a Changing Economy. Here’s How It Plans To Do It

When Red Lobster exited bankruptcy, its new CEO promised to usher in a new era for the then-floundering brand. Now, as threats of a recession loom on the horizon, Damola Adamolekun says the winds of change are blowing again for the brand. Here’s how Adamolekun plans to shift the casual dining chain’s efforts through a changing economy.

Red Lobster Has New Ideas in a New Economy

Once a staple of the American casual dining scene, Red Lobster is boldly moving to reclaim its place at the table. The seafood chain, known for introducing many customers to their first taste of shrimp or lobster, recently launched a new marketing campaign featuring retired NBA star Blake Griffin. The effort is part of a broader strategy to revive the brand under the leadership of CEO Adamolekun, who recently sat down with CBS News to discuss how he’s leading the company into new territory as the country heads toward a recession.

Adamolekun, a 36-year-old Nigerian-born Ivy League graduate and former investment banker, took over the company last September following a turbulent period that included bankruptcy filings and the closure of several dozen locations. Red Lobster now operates 544 restaurants across the U.S. and Canada, and Adamolekun is focused on streamlining operations and modernizing the customer experience.

“It’s an expensive product,” Adamolekun said, explaining his decision to eliminate the chain’s famous endless shrimp deal. “The way they were doing it was unmanaged.” Instead, Red Lobster is trimming down its menu while introducing new offerings designed to balance quality with profitability.

The challenges facing Red Lobster are not unique. Full-service restaurants saw a nearly 29% drop in sales during the COVID-19 pandemic, and inflation continues to pressure both operators and consumers. Rising food costs have forced many brands to pass increases along to diners, and Red Lobster is no exception. However, Adamolekun is cautious not to price the chain out of reach. “I don’t want to be higher than overall inflation,” he said.

With the chain emerging from bankruptcy, industry outlooks are cautiously optimistic. According to the National Restaurant Association, most operators expect 2025 sales to hold steady or improve. For Red Lobster, the focus is now on creating an atmosphere that resonates with younger diners — those looking for more than just a meal. “If you don’t live up to what they expect, they won’t come back,” Adamolekun warned.

The New Lobsterfest Is the GLOAT

Meanwhile, Red Lobster continues offering a fair share of sales and promotions to make 2025 its best year ever for customers. Last month’s announcement of Lobsterfest, which the chain billed as the GLOAT (Greatest Lobsterfest of All Time), is the perfect example.

The restaurant introduced 10 delicious meals as well as a first-time Lobsterfest upgrade, the ability to create your own feast. Through April 20, customers can create their ideal seafood dish by picking two or three lobster entrées and tailoring it to their preferences.

Red Lobster’s new offerings include Lobster & Shrimp Linguini and a Lobster Roll. Legendary Red Lobster classics such as hush puppies and popcorn shrimp are back and will be served with an unending supply of Cheddar Bay biscuits.

Nichole Robillard, CMO at Red Lobster, stated in the press release, “Lobsterfest is the ultimate celebration for lobster lovers, and this year, we’re taking it to the next level with more variety, more flavor, and more ways than ever for guests to satisfy their crustacean cravings. From brand-new lobster creations to our exciting new Create Your Own option, we’re serving up a lobster-loaded lineup that’s sure to please any palate.”

Along with its seafood offerings, Red Lobster also launched a relationship with NBA All-Star Blake Griffin. The Dunk Champion is bringing his plating abilities to Red Lobster, where patrons can eat their lobster Blake Griffin-style. This plate has a Rock Lobster Tail, new Garlic Butter-Poached Maine Lobster, and new Lobster Mac & Cheese.