How Red Lobster’s New CEO Is Clawing the Chain Back After Bankruptcy
The chain is still slimming down as CEO Damola Adamolekun reviews leases and cuts costs, though sales are up 10% and viral seafood boils are driving traffic.
Red Lobster’s comeback is real, but it’s not finished yet. CEO Damola Adamolekun told The Wall Street Journal that sales are up 10% from last year, and viral Seafood Boils drove an 18% traffic jump in July.
The 35-year-old former P.F. Chang’s CEO has revamped the menu, introduced happy hour, and launched “red carpet hospitality” training since taking over after the chain’s 2024 bankruptcy. Younger customers are giving the brand a try, and customer sentiment has improved significantly.
But Adamolekun says the chain still needs strategic cuts. Red Lobster could close more locations beyond the 130 it shuttered during bankruptcy. The company recently laid off dozens of managers and 10% of corporate staff while negotiating with vendors over tariff-driven seafood costs.
Once struggling sites are resolved, Adamolekun plans to expand in upstate New York and New England, grow international franchising, and boost retail sales of Cheddar Bay Biscuit mixes.
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Red Lobster’s comeback is real, but it’s not finished yet. CEO Damola Adamolekun told The Wall Street Journal that sales are up 10% from last year, and viral Seafood Boils drove an 18% traffic jump in July.
The 35-year-old former P.F. Chang’s CEO has revamped the menu, introduced happy hour, and launched “red carpet hospitality” training since taking over after the chain’s 2024 bankruptcy. Younger customers are giving the brand a try, and customer sentiment has improved significantly.
But Adamolekun says the chain still needs strategic cuts. Red Lobster could close more locations beyond the 130 it shuttered during bankruptcy. The company recently laid off dozens of managers and 10% of corporate staff while negotiating with vendors over tariff-driven seafood costs.
Once struggling sites are resolved, Adamolekun plans to expand in upstate New York and New England, grow international franchising, and boost retail sales of Cheddar Bay Biscuit mixes.
Sign up for the Entrepreneur Daily newsletter to get the news and resources you need to know today to help you run your business better. Get it in your inbox.
