Inside Red Lobster’s Comeback Under Its 36-Year-Old CEO
Seafood restaurant chain Red Lobster is making a comeback under the leadership of CEO Damola Adamolekun.
The 36-year-old, who took the helm as Red Lobster emerged from Chapter 11 bankruptcy last year, is leaning on two simple strategies: listen to customers and make the restaurants worth returning to.
Red Lobster’s bankruptcy
Founded in 1968, Red Lobster filed for Chapter 11 bankruptcy in May 2024, closing more than 100 of its nearly 650 restaurants. Decades of rising labor and lease costs were compounded by the infamous endless shrimp fiasco, which turned a once-a-week promotion into a permanent menu feature, Bloomberg reports.
The deal backfired, costing the company $11 million as diners ate more shrimp than Red Lobster could afford, lingered at tables longer, and increased wait times for others.
Red Lobster exits bankruptcy, Appoints New CEO
By September 2024, a federal judge approved Red Lobster’s restructuring plan, and the company emerged from bankruptcy under new ownership by RL Investor Holdings, backed by Fortress Investment Group. As part of the company’s new chapter, Adamolekun was appointed CEO of Red Lobster in August 2024.
He previously served as the CEO of P.F. Chang’s, where he generated over $1 billion in revenue annually, according to the National Restaurant Association.
“I’ve been a Red Lobster fan since my first dining experience as a nine-year-old at our Springfield, Ill, restaurant,” he said in a press release. “As I’ve prepared to step into the role of CEO, I’ve met hundreds of diners across the country who, just like me, are as passionate about Red Lobster now as they were on their first visit.”
Listening to customers
Adamolekun’s key strategy for revamping the restaurant chain has been listening to customer feedback. “We read the comments to see what people are saying,” he told ABC News’ Good Morning America. “We try to react quickly to deliver what they want.”
“There was a group of people saying, ‘We want more heat, more spice, more flavor options,'” he added. “Within a week, we turned it around and added a spicy option, an extra spicy option, a new flavor, Old Bay and Parmesan, and Cajun sausage.”
Adamolekun told Bloomberg that he is also focusing on improving hospitality and remodelling all 545 Red Lobster restaurants to make them “energetic, vibrant, inviting, warm.” He added that Red Lobster’s online ratings are trending above the industry average.
The company is also adjusting its supply chain, shifting some shrimp imports from China to India to navigate US tariffs while continuing to source lobster and crab from the US and Canada.
The company has no plans of putting endless shrimp back on the menu, Adamolekun told GMA.
Image: Damola Adamolekun
