One of East Texas Favorite Seafood Restaurants in Danger of Closing for Good

There are lots of great places across Texas, and in East Texas, that serve up some great seafood. Makes sense. We're not too far from the coast so getting fresher seafood isn't a problem. Most East Texans are a fan of crab, lobster, shrimp or other seafood staples. One chain restaurant has been serving up seafood favorites for decades in Tyler, Longview and Lufkin, Red Lobster. A recent news release isn't good for the chain and could possibly bring some permanent closures.

Red Lobster Troubles

Many businesses are struggling in this current economic climate. They are struggling to make a profit, they are struggling to meet labor costs, they are struggling with the rising prices of food or other goods. It's not an easy time for businesses nor is it an easy time for consumers because everything is costing so much. For Red Lobster, they are looking into restructuring some of their debt which could include a bankruptcy filing (businessinsider.com).

The main reason for looking into debt restructuring is because they are struggling to keep up with various lease agreements and also with paying their employees. If you can't pay rent or your employees, that's obviously a big problem.

All You Can Eat Shrimp

Another issue Red Lobster is facing is an $11 million dollar loss in the third quarter of 2023. What contributed to that loss? A promotion that became way more popular than they anticipated, Ultimate Endless Shrimp. For $20, you could order, and eat, as much shrimp as you wanted in one sitting. Because of the unexpected popularity, they had to raise the price to $25 but also made it a permanent part of the menu.

Unfortunately for Red Lobster, that menu item cost them too much money in the long run.

The Future

What does this mean for the future of Red Lobster? Well, it's really too early to tell. But there is always the possibility of the company having to close some stores. Let's hope that doesn't happen as folks in East Texas will miss getting full too soon on Cheddar Bay Biscuits then ordering an Ultimate Feast.

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