Under new Chief Executive Damola Adamolekun, Red Lobster, a casual dining giant, is being rebooted in a very serious way. The executive, 35, was hired in August and given the task of reviving the brand and attracting more millennial diners in the future.
Ever-struggling company, with foot traffic plummeting sharply in the past year, visitors plummeted more than 43% during October over the comparable period last year, according to data from Placer.ai location analytics firm. So, Red Lobster made a series of strategic moves to revitalize its appeal. These include a new menu that introduces nine new dishes and the reintroduction of popular items such as hush puppies. Adamolekun is also fixing the atmosphere at the restaurant and is fine-tuning the lighting, décor, and music playlists to bring greater vibrancy and energy that comes with a dining experience that speaks to the young. With some 40 percent of Red Lobster’s customers being older than 55, Adamolekun treads between loyalty to existing customers and broader, more youth-oriented appeal. “You have to balance,” he said, acknowledging that both must be attracted.
It is part of a larger move to resuscitate fortunes at Red Lobster since the chain emerged from bankruptcy earlier in the year. The new investor, Fortress Investment Group, has promised to inject an extra $60 million to drive the brand’s revamp efforts, which include new technologies expected to enhance efficiency in operations and the overall dining experience.
Casual dining chains face broad-based industry challenges, including rising food costs and labor shortages. Red Lobster’s last attempt at a value-based promotion was in the form of its $20 endless shrimp deal, which resulted in massive losses: offering a discount product does not seem an easy trick.
Despite all of this, however, Adamolekun is optimistic he can keep Red Lobster thriving by targeting millennials’ preferences. “If you want to have a future, then you need to engage younger guests,” he said, underlining the need for innovation to ensure the chain’s long-term success.
