Red Lobster Endless Shrimp Feast: In an attempt to combat the traditional slowdown in business during the third and fourth quarters, Red Lobster’s parent company, Thai Union, rolled out a new promotion: unlimited shrimp for $20. While this offer had been a seasonal tradition for over 18 years, the company decided to make “Ultimate Endless Shrimp” a permanent fixture on the menu in June.
The strategy was simpleoffer customers an irresistible deal to boost foot traffic in the restaurants during slower months. However, the plan worked a little too well, as revealed in Thai Union’s third-quarter earnings report. The unexpected popularity of the endless shrimp promotion turned out to be a double-edged sword, contributing to the chain’s approximately $11 million loss in Q3 of 2023.
Customers flocked to Red Lobster to take advantage of the $20 offer, allowing them to choose two shrimp dishes to start and continue ordering from a variety of options, including coconut shrimp, linguini alfredo, and grilled shrimp skewers.
While the promotion successfully increased foot traffic by 2% compared to the previous quarter and 4% compared to the previous year, the proportion of customers participating in the deal surpassed the company’s expectations.
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CFO Ludovic Garnier acknowledged in an earnings call that the promotion wasn’t a significant moneymaker at the $22 price point. The primary goal was to drive traffic to the restaurants. However, the unexpected success prompted Red Lobster to reevaluate the promotion’s sustainability.
Despite being one of Red Lobster’s most iconic promotions, adjustments were necessary to keep it on the menu. The company opted for incremental price increases on the deal, first moving from $20 to $22 and eventually settling at $25.
Garnier emphasized the need for careful consideration regarding the entry point and price offering for such promotions. Red Lobster now faces the challenge of balancing its iconic endless shrimp feast’s popularity with the financial viability of the deal, illustrating the delicate dance between customer satisfaction and the restaurant’s bottom line.
Our Reader’s Queries
Is Red Lobster losing money on endless shrimp?
Red Lobster’s recent promotion of endless shrimp has been linked to the company’s $11 million operating loss, according to The Washington Post. While the promotion was intended to attract customers and boost sales, it appears to have had the opposite effect. The company’s financial struggles highlight the importance of carefully planning and executing promotional campaigns to ensure they are effective and profitable.
How long will endless shrimp be at Red Lobster?
Indulge in unlimited shrimp for just $20! This irresistible offer has been a long-standing tradition at our chain for over 18 years. And now, we’re thrilled to announce that our beloved endless shrimp has become a permanent fixture on our menu. We understand that the price is unbeatable, but we’re committed to providing our customers with the best value for their money. So, come on in and feast on as much shrimp as your heart desires!
How does Ultimate Endless shrimp work?
With SHRIMP YOUR WAY?, you can craft your ideal meal by selecting two or three shrimp preparations. And if you’re looking to indulge even further, opt for the Ultimate ENDLESS SHRIMP?. Begin with three delectable shrimp preparations and order more as you please.
Does Red Lobster endless shrimp include coconut shrimp?
Indulge in the ULTIMATE ENDLESS SHRIMP? experience with a variety of Mix and Match options. Savor the delectable flavors of NEW Crispy Sea Salt & Vinegar Shrimp, Garlic Shrimp Scampi, Grilled Shrimp Skewer, Parrot Isle Jumbo Coconut Shrimp, Walt’s Favorite Shrimp, Shrimp Linguini Alfredo, and Popcorn Shrimp. Begin with three options of your choice and when you’re ready, we’ll bring more.