Red Lobster’s ‘Ultimate Shrimp’ Deal Backfires as Cash-Strapped Americans Eat Chain Into $11 Million Loss
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…
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.
“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.”
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