Red Lobster recently filed for bankruptcy, following the closure of nearly 100 stores nationwide. The company has changed hands multiple times over the last decade with each set of new owners attempting, unsuccessfully, to reverse its fortunes.
Among the strategies employed was the Endless Shrimp promotion, which offered unlimited shrimp for $20, leading to an $11 million loss in the last quarter of 2023.
The Strategy Behind Endless Shrimp
The Endless Shrimp promotion was intended to draw in large numbers of customers by offering unlimited shrimp, including variations like fried shrimp, shrimp scampi, and street corn shrimp.
The goal was for customers to consume just enough to keep profit margins intact, but the plan did not work as intended, resulting in significant financial losses.
The Broader Financial Struggles
Emily Stewart of Business Insider attributes Red Lobster’s failure to a series of poor financial decisions.
Among the most damaging was the decision to sell off property assets only to lease them back at high rates, thus significantly increasing overhead costs and financial strain on the company.
Employees’ Experiences During the Promotion
Many Red Lobster employees reported that the Endless Shrimp deal made their work environment extremely difficult.
They described the promotion period as “hell on earth,” due to the demanding nature of serving an endless stream of shrimp to large numbers of customers.
Employee Testimonials
One employee, James Berke, described a particularly memorable experience.
He said, “I had a guy come in with his family. It was a family of five. And he did 16 rounds of shrimp scampi,” illustrating the extreme situations that employees frequently faced during the promotion.
Financial Consequences for Employees
The introduction of the $20 Endless Shrimp deal had a direct impact on employees’ earnings.
According to one employee, “I usually made $200 a night before Endless,” said Steve, another Red Lobster employee. “Once it became a thing, I was down to $90.”
Customer Behavior Challenges
Employees often dealt with customers who stayed for excessively long periods to maximize the value of their meal.
One server recounted a customer who stayed for four hours consuming 30 orders of fried shrimp, highlighting the challenge of dealing with such extreme customer behavior.
Rules and Customer Reactions
The promotion included specific rules that customers frequently contested, such as not being allowed to take shrimp home or share among a table.
These rules often led to heated exchanges between staff and customers, adding to the already stressful environment.
The Impact on Employee Morale
Many employees faced disrespect and challenging interactions that affected their morale.
As Steve explained, “My manager got spat in the face,” demonstrating the level of disrespect that employees sometimes encountered from patrons.
The Demographic Shift
The promotion also appeared to change the demographic of Red Lobster’s clientele, with a noticeable shift towards a younger, and sometimes rowdier, crowd.
This shift impacted the dining atmosphere and added new challenges for the staff.
The End of the Line for Many Locations
Following the difficult promotion period, many employees found their stores suddenly closed, such as right after Mother’s Day, one of the busiest days for any restaurant.
“They made us work Mother’s Day to get that quick buck, and then they closed us,” Berke said, describing the abrupt end to his employment.
Customer Perspectives on Endless Shrimp
While the promotion was a challenge for employees, it was a boon for some customers. Michael Durrant, a patron, shared his experience of consuming a large quantity of shrimp during these visits: “I am bummed that Red Lobster is going away,” Durrant said.
“But I get it. There’s not really anything on the menu worth getting other than the Endless Shrimp.”
