Red Lobster raises price for its endless shrimp in wake of $11 million operating loss
December 04, 2023 04:02 PM
Seafood restaurant chain Red Lobster has raised the price of its endless shrimp offer due to acquiring an $11 million operating loss.
The loss that Red Lobster underwent in its third quarter was due in part to its iconic endless shrimp offer, which only cost $20. The price has been raised to $25 to help minimize losses, according to a report.
“The proportion of the people selecting this promotion was much higher compared to expectation,” said Ludovic Garnier, chief financial officer of Thai Union Group, Red Lobster’s parent company.
The $20 endless shrimp offer was intended to win over new customers, and while the strategy worked, it was not as effective as the chain had hoped.
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Garnier added that customers are more restrained in spending at restaurants, and many are looking to get the most out of their money when eating out. As a result, the restaurant’s endless shrimp offer has become more and more popular.
“It’s one of the iconic promotions for Red Lobster, so we want to keep it in the menu, but of course, we need to be much more careful regarding what is the entry point and what is the price point we’re offering for this promotion,” Garnier said.