Red Lobster’s Endless Shrimp promotion was a major reason the chain posted an $11 million operating loss in the third quarter of last year. Now, as it prepares for Lobsterfest 2024, the company is taking steps to ensure this doesn’t happen again while capitalizing on consumer hunger.
This year’s Shellfish Celebration will allow 150 guests, and 150 guests only, to enjoy endless lobster. There are, of course, caveats.
For one thing, you’ll only have two hours to shovel seafood into your face. And if you can down a dozen 1.25-pound Maine lobsters in one sitting and still want more, you’ll be offered Maine lobster tails or Caribbean Rock lobster tails for subsequent entrees.
The lobsters will be free for the winners. They will have to pay for the drinks, as well as tax and tip.
To qualify for the promotion, Red Lobster says people will have to monitor its social media channels to see when they can claim the feast.
Last year, Red Lobster posted a big loss in its third-quarter earnings after expanding its Endless Shrimp promotion to a daily event, rather than the traditional Monday-only offering. Prices were higher, but so many people took advantage of the deal – and some to the point of gluttony – that profits plummeted.
“It’s one of the iconic promotions for Red Lobster, so we want to keep it on the menu,” Ludovic Garnier, chief financial officer of Thai Union Group (which owns a stake in Red Lobster), told investors on a call in November. “But, obviously, we have to be much more careful about what the entry point is and what the price is.”