After closing over 100 locations and filing for Chapter 11 bankruptcy protection in May, Red Lobster has announced the appointment of Damola Adamolekun as its new CEO. The seafood restaurant chain, which has been a staple for 56 years, has faced significant challenges, including a leadership shake-up with five CEOs since 2021.
Adamolekun, 35, expressed his dedication to revitalizing the brand in a recent interview with CNN. “This is, without exaggeration, one of the most important companies in American history,” he said. His immediate plan includes cutting costs by downsizing the menu, a response to rising expenses that have pressured both businesses and families.
Individual bankruptcies in the U.S. have surged in 2024, with Chapter 13 and Chapter 7 filings up 9% and 19%, respectively, compared to the same period last year, according to Epiq. The financial strain on consumers could take years to resolve.
As part of his restructuring efforts, Adamolekun plans to eliminate one of Red Lobster’s signature offerings: the $20 Endless Shrimp promotion, first introduced in 2004. This initiative reportedly cost the company an estimated $20 million in 2023 after becoming a permanent menu item. “That’s a very expensive product to give away endlessly,” he explained, citing the chaos it created in the kitchen. With a background as a former server, he understands the pressures faced by restaurant staff.
In addition to the shrimp offer, Adamolekun aims to reduce the menu in a strategic manner while enhancing the restaurant’s infrastructure and technology to support future growth.
While it’s uncertain whether these changes will alleviate Red Lobster’s financial difficulties, Adamolekun is optimistic about the company’s potential for recovery and expansion. “We intend to be done closing restaurants and we intend to grow from here,” he stated. He emphasized the importance of investing in product quality and infrastructure, even if these improvements take time to manifest.
Adamolekun’s approach may also provide insights for individuals facing financial strain. He noted the value of strategic investments in personal skills and income generation, citing research that shows apprenticeship programs can significantly boost long-term earnings.
“Ask yourself, ‘What can I do to get above-average income for above-average financial results?’” he advised. As Red Lobster navigates its recovery, its new CEO’s initiatives may offer lessons in resilience and growth for both businesses and individuals alike.