Red Lobster plans to close more locations nationwide as the brand looks to fully optimize its footprint, according to the Wall Street Journal.
CEO Damola Adamolekun told the publication that the seafood giant is reviewing real estate and leases as it looks to cut expenses. The amount of closures could reach the “dozens,” the Journal reported.
Red Lobster filed for bankruptcy in late May 2024, shuttering more than 100 restaurants as part of the process. The brand was later acquired by Fortress Investment Group via a credit bid. The firm then named Adamolekun chief executive, marking the chain’s sixth CEO since 2021.
However, signs of a turnaround are emerging. According to Adamolekun, Red Lobster’s sales have increased 10 percent year-over-year, thanks to more visits from younger customers, although they haven’t returned to pre-bankruptcy levels.
The brand has leaned into value and new product news. Last year, Red Lobster brought back happy hour drinks and appetizer deals and introduced a 3-Course Shrimp Sensation meal and new Seafood Boils.
The chain also made adjustments from what didn’t work in the past. For instance, one of its core operational issues was the “Ultimate Endless Shrimp” deal in 2023, which changed from an LTO to a permanent promotion. It caused the company to lose $11.1 million in a quarter. Fast forward to 2025, Red Lobster revitalized the deal with an “Ultimate SpendLESS” promotion, offering a trio of shrimp dishes for $15.99.
The company hopes to become more culturally relevant as well, including forging a deal with Snoop Dog and Dr. Dre’s new gin, partnering with the WNBA’s Chicago Sky and Ice Cube’s Big3 basketball league, and teaming up with HBCUs on their Band of the Year programming.
In terms of technology, Red Lobster reversed a 2023 decision to bring online ordering in-house and announced its return to Olo in late June 2025. The move followed challenges maintaining a proprietary system, including the need for constant innovation, security oversight, and scalability. Red Lobster renewed the partnership by deploying Olo’s Sentiment reputation management platform and its Catering+ solution.
The brand also announced a partnership with SoundHound to install AI-powered phone ordering to streamline phone-based takeout orders across the system.
