Red Lobster is set to emerge from Chapter 11 with a leaner footprint. What do you think about their new direction? 🍤 #RedLobster #Bankruptcy #RestaurantNews #FoodIndustry Read more https://lnkd.in/e86tip7V
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Industry Alert: Red Lobster Faces Financial Challenges Red Lobster, once a giant in the seafood restaurant chain, is reportedly preparing for a Chapter 11 bankruptcy filing, according to The Wall Street Journal. This development follows a week marked by the sudden closure of up to 99 locations nationwide and the appearance of their kitchen equipment on liquidation websites. The New York Times highlights that Red Lobster has been financially struggling for some time, exacerbated by last year's unlimited shrimp promotion which reportedly pushed the company deeper into financial distress. This news arrives as a significant signal to the industry, reflecting the potential end of 'all-you-can-eat' promotions that many of us remember fondly from chains like Red Lobster and others during our childhoods. It raises important questions about the sustainability of such business models in today's economic climate. #RedLobster #Bankruptcy #RestaurantIndustry #BusinessModels #EconomicChallenges #linkedinnews #linkedincommunity
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https://lnkd.in/d9Ubp87u Discover the tumultuous journey of Red Lobster as it faces financial turmoil in our latest blog post, "Breaking News: Red Lobster's Financial Struggles Lead to Bankruptcy." Uncover the rise and fall of this iconic seafood chain, delve into the factors that have contributed to its bankruptcy, and explore the profound impact on both loyal employees and devoted customers. Join us as we speculate on the future of Red Lobster and discuss potential strategies for its recovery in our comprehensive analysis of this industry shake-up.
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ReInvest Capital is proud to announce our latest series: #WhitePaperWednesday. Each Wednesday we will publish a comprehensive analysis on a specific brand to our website to offer potential #investors, #franchisees, and #stakeholders’ valuable insights into the brand’s history, financial performance, competitive landscape, and market position. Join us for week one: #BurgerKing By exploring key operational metrics such as Average Unit Volume (AUV), #EBITDA Margins, and franchisee economics, this paper aims to assist interested parties in evaluating the business potential of Burger King. Whether considering a new franchise investment or acquiring multiple existing units, this report offers critical data to inform decision-making in the current fast-food industry landscape. https://lnkd.in/gZgU283W
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Unlocking Opportunities: Nash Advisory guided Crackerjack Foods, a leading player in frozen potato snacks, through a transformative journey. Learn how the Nash team, Paul Nemets and Jack Geason’s strategic insights and industry connections paved the way for a successful sale to Lamb Weston. Full article below
Case Study: Crackerjack Foods sold to Lamb Weston
nashadvisory.com.au
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𝐖𝐄𝐄𝐊𝐄𝐍𝐃 𝐑𝐄𝐅𝐄𝐑𝐑𝐀𝐋 ⭐️🌟✨ "𝗧𝗵𝗲 𝗺𝗼𝗿𝗲 𝘆𝗼𝘂 𝗴𝗶𝘃𝗲 𝗼𝗳 𝘆𝗼𝘂𝗿𝘀𝗲𝗹𝗳, 𝘁𝗵𝗲 𝗺𝗼𝗿𝗲 𝘆𝗼𝘂 𝗿𝗲𝗰𝗲𝗶𝘃𝗲" - 𝗥𝗮𝘆 𝗞𝗿𝗼𝗰 (American businessman who purchased the fast food company McDonald's in 1961) #thankyousomuch #wordscantexplain #reallyappreciated #financialadvice #publicmutualisabrand #publicmutualconsultant #publicmutual #weaddvaluetopeoplelife #unittrustinvestment #kitejagakite #GoldenPhoenixAdvisory #Vgreatagency #togetherwegrowbetter
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Red Lobster filed for #bankruptcy an early AM [U.S.] report in The Wall Street Journal said. It plans to sell itself to current #lenders. The #Orlando-based #restaurant operator got $100M in #debtor-in-posession #financing commitments. Golden Gate Capital bought the #casualdining seafood chain from multi-concept operator Darden 10 years ago for $2.1B. The #privateequity firm sold half [to be staged at a 10-year interval] of the chain to Thai Union Group PCL. in 2016 for an upfront $575M. It sold its remaining stake to the same buyer four years later. Red Lobster suffered during the #pandemic when both sit-down #dining and commercial #fishing plunged. The #chain had about 650 locations at last count and recently closed dozens of sites in 20 states. #PublicCompany Darden’s move a decade ago looks prescient of course; a long-time owner selling cd be a #redflag. I recall it had then gone under new execs and was trying to focus on its higher-end chains. On that score, Red Lobster was costlier without being worth it. Darden still owns Olive Garden, e.g., which is the reverse — moderate but can feel like family abundance or even [relatively] snooty, with the grated cheese and whatnot, plus the value, via the endless soup and salad. My town has locations of each. Can’t escape from the lobstah for less than $30+, and it’s tumbleweeds in there. The OG is $20, and it’s packed. People considering lobster and scampi are prolly willing to splurge — go to truly high-end — rather than an ersatz chain. “Several restaurant #chains have recently declared bankruptcy or are seeking a sale. Higher #finance costs, slower #consumer #spending and declining #investor interest in #food #investments have hurt restaurants’ #balancesheets, filings and restaurant executives showed,” the Journal said.
Red Lobster Files for Bankruptcy
wsj.com
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Red Lobster, on the brink of seeking bankruptcy protection has been recently blaming its downfall on an ill fated “all you can eat shrimp” promotion, but its troubles go deeper than that, maybe even to its real estate. Back in 1995, Red Lobster’s owner, General Mills sold off the chain along with the rest of its restaurant division, which also included Olive Garden, as Darden Restaurants. But in 2014, amid flagging sales and pressure from investors, Darden sold Red Lobster for $2.1 billion to Golden Gate Capital, a San Francisco private-equity firm. That’s when the problems began. You see, to raise enough cash to buy the lucrative seafood chain, Golden Gate sold off Red Lobster's real estate to another entity — American Realty Capital Properties — and then immediately leased the restaurants back. As soon as they sell the real estate, the private-equity company is made whole, but the restaurant chain is now saddled with added rent indefinitely. It gets more complicated but as Red Lobster continued its downward trend over the next decade, few will remember how the economics have changed for Red Lobster from its heyday. Some will say Red Lobster is no longer in vogue, that consumer tastes have changed but we know better.
The fishy death of Red Lobster — Business Insider
stocks.apple.com
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We need more innovative CEOs in America.
Red Lobster's new CEO Damola Adamolekun is unfazed about his age and wants critics to know it. The newly appointed CEO of the hard-hit seafood chain comes aboard not long after the company's bankruptcy filing earlier this year. He sat down with CNN over some lobster and shrimp to talk his experience and how he approaches work. Watch the full video: https://cnn.it/4f7L9xF
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