Key Takeaways
- Red Lobster has closed more than 160 restaurants since its 2024 bankruptcy, shrinking from over 700 locations to roughly 540 as CEO Damola Adamolekun says the chain must “get smaller.”
- The closures include its 56-year-old Tallahassee restaurant and 23-year-old Times Square outpost, while creditors have sued former leaders over the money-losing Endless Shrimp strategy.
- Adamolekun is reviving nostalgic menu items and a more restricted Endless Shrimp promotion while betting on AI to deliver what he calls “the greatest comeback in the history of the restaurant industry.”
Red Lobster’s comeback plan has a painful first step: more than 160 of its restaurants are already gone.
According to Inc., the iconic seafood chain has shrunk from more than 700 locations before its 2024 bankruptcy to roughly 540 today, with closures continuing across the country in 2026. And CEO Damola Adamolekun has made clear that the smaller footprint isn't an accident. Red Lobster needs to “get smaller” by closing underperforming restaurants and building a healthier business from what remains.
Some major locations haven't survived the purge. Red Lobster closed its Tallahassee restaurant in May after 56 years, ending the run of its oldest continuously operating location. The same month brought closures in Pennsylvania, Kansas and Missouri.
“Times Square has been an important chapter in Red Lobster’s history, and this was a difficult decision,” the company said. Red Lobster cited construction that hurt access and foot traffic, as well as plans to convert the building into apartments.
But the closures are only one part of Adamolekun’s aggressive attempt to rebuild a company that filed for Chapter 11 just two years ago.
Red Lobster filed for bankruptcy in May 2024 after years of mounting financial problems, including costly leases and the spectacular failure of its $20 Ultimate Endless Shrimp promotion. Making the once-seasonal deal permanent helped saddle the company with millions in losses as customers ate far more shrimp than its pricing model could handle.
The fallout isn't over. Red Lobster creditors sued former CEO Paul Kenny, other former executives, and former majority owner Thai Union earlier this year, alleging they pushed the Endless Shrimp strategy despite objections from employees. The lawsuit memorably described the promotion as a “car crash,” claiming restaurants became “immobilized as they ran out of shrimp and were unable to turn over tables.”
And yet, Endless Shrimp is back.
Red Lobster revived the promotion in select markets this spring before announcing another limited return in August—this time with restrictions intended to prevent another financial disaster. It's part of a broader nostalgia play under Adamolekun that has also brought back hush puppies and popcorn shrimp while adding seafood boils and new value deals.
Adamolekun is betting on technology, too. The 37-year-old CEO has said he wants Red Lobster to become “the most AI-forward restaurant company that exists,” making artificial intelligence another pillar of the turnaround.
His ambitions aren't modest.
“We’re going to execute the greatest comeback in the history of the restaurant industry,” Adamolekun told employees after taking over, according to The Wall Street Journal.
