November 22, 2024
Who would've thought that Red Lobster would underestimate the demand for fried and breaded shrimp? An "Ultimate Endless Shrimp" all-you-can-eat deal offered at the seafood chain's locations has become a source of financial losses for the company, according to USA Today. The Ultimate Shrimp deal enables customers to choose two...

Who would’ve thought that Red Lobster would underestimate the demand for fried and breaded shrimp?

An “Ultimate Endless Shrimp” all-you-can-eat deal offered at the seafood chain’s locations has become a source of financial losses for the company, according to USA Today.

The Ultimate Shrimp deal enables customers to choose two varieties of shrimp — of which they would be served an unlimited amount of servings.

The business strategy behind the deal backfired, according to the CFO of the chain’s parent company, Ludovic Regis Henri Garnier.

Garnier disclosed the thousand cuts by shrimp in a conference call with corporate investors, according to Restaurant Business Magazine.

Trending:

Newsom Debate Takes Brutal Turn as Opponent Pulls Out an All-Brown Map

“We wanted to boost our traffic, and it didn’t work.”

“We want to keep it on the menu. And of course we need to be much more careful regarding what are the entry points and what is the price point we are offering for this promotion.”

Do you agree that food prices are too high?

Yes: 0% (0 Votes)

No: 0% (0 Votes)

Some fans of the promotion lacked remorse for eating into Red Lobster’s profits.

The deal — introduced in June — did succeed in driving a 4 percent increase in traffic to Red Lobster locations, at a cost to the company’s profits.

The company is expecting to incur a $20 million overall loss for the year, and $11.3 million this quarter.

Related:

Bidenomics: Inflation Pushes Christmas Tree Prices Significantly Beyond Last Year’s Highs, Even for Artificial Ones

Ultimate Shrimp stays on the menu, for now — although its price point has been increased to $25.

Garnier described Red Lobster’s difficulties in appealing to inflation-hit customers increasingly mindful of costs while maintaining the company’s overall profitability.

The CFO indicated that Red Lobster had brought in corporate consultants to aid in the long-term economic strategy of the chain.

“We are really monitoring very closely the situation in order to improve the operation and the efficiency and the marketing of Red Lobster.”

“And then on the flip side, we also have the support from the advisors to see, what are we doing in the mid-term and also in the long-term with the business?”


A Note from Our Founder:

 

Silicon Valley and the Big Tech tyrants have done everything they can to put The Western Journal out of business. Our faithful members have kept us going.

 

If you’ve never chosen to become a member, let me be honest: We need your help today.

 

I also want to send you an autographed copy of “Counterpunch,” which will give you a plan to fight back for our beloved country.

 

Join right now – The Western Journal stands for truth in this difficult time.

 

Please stand with us by becoming a member today.

Floyd G. Brown
Founder of The Western Journal