The people who run Red Lobster had no idea how much shrimp Americans can actually eat.
The seafood chain reported an $11 million third quarter loss, placing the blame, at least in part, on its ULTIMATE ENDLESS SHRIMP℠ special, which until recently went for $20.
The unlimited shrimp deal is not new, but Red Lobster’s leaders made it a permanent thing earlier this year to boost traffic.
It did get people through the door, when they could fit, but it wasn’t a good business move.
“The proportion of the people selecting this promotion was much higher compared to expectation,” said Ludovic Garnier, the CFO of Red Lobster’s parent company, Thai Union Group.
So basically, way too many people chose the $20 option and ate way more than $20 worth of shrimp. So they’ve bumped the price up to $25.
The dine-in-only special comes with a wide assortment of shrimp options which can be mixed and matched. Per Red Lobster’s terms and conditions, you cannot take shrimp home.
There’s no question about it: this is not good news for Instagram user @redlobsterloverjoe1, who loves “to eat at Red Lobster locations in central Ohio.”