Across the industry, rising labor costs and supplies are squeezing profit margins for many fast food chains and restaurants.
Surprisingly, this chain is also blaming their struggles on a promo gone wrong...
The deal on the table was an all you can eat promotion called "Endless Shrimp". They claim it put them in the hole for $11 million!
Now they're considering filing for Chapter 11 Bankruptcy to restructure their debt and bail out the sinking ship. But some financial analysts are postulating the chain is in debt for a different reason.
Delivery apps and changing consumer preferences have led the iconic seafood restaurant to fall out of favor.
As part of the plan to get back on track, they've appointed a new CEO. Supposedly, he specializes in bringing restaurants back from the edge.
Is this the beginning of the end? Or simply a new beginning?
Since Red Lobster came onto the scene in 1968, it would shock us to lose them!