Red Lobster emerged from bankruptcy in September of 2024 with a bold comeback plan. It hired a charismatic young CEO in Damola Adamolekun, revamped its menu, marketing and leadership team, and declared a “new day” for the long-troubled brand.
But nearly two years since the Chapter 11 filing, Red Lobster’s new day looks much like the old.
The chain’s systemwide sales fell by 6.2% in 2025, to $1.56 billion, according to a Technomic estimate, marking its third straight annual sales decline. Though still the nation’s largest seafood chain, Red Lobster is the smallest it has been in at least 26 years, according to Technomic data dating back to 1999.
Red Lobster declined to confirm the sales figure, saying it doesn’t comment on third-party sales estimates.
Its efforts to right the ship have been slowed by some of the same factors that led to its bankruptcy: Expensive leases, outdated restaurants and waning consumer demand for seafood.
The chain has taken steps to boost its relevance and its traffic, adding seafood boils and a happy hour. On Wednesday, Bloomberg reported that it will soon bring back the popular Endless Shrimp promotion that hastened its slide into bankruptcy, albeit for a limited run this time.
And to help its bottom line, Red Lobster has been working to shed unprofitable locations. It recently closed two stores in Michigan and Texas, with another in Kansas scheduled to go dark soon, according to local media reports. The total number of closures could reach the dozens, the Wall Street Journal reported in February.
That follows a wave of some 130 closures before and during Red Lobster’s bankruptcy proceedings—or about one out of every five of its restaurants at the time.
It still has more than 500 locations nationwide, but many of them are troubled. A group of about 100 Red Lobsters are losing more money than the rest of the system is bringing in, Bloomberg reported last week, creating a drag on the entire company.
That issue dates back to 2014, when Red Lobster was sold by Darden Restaurants to Golden Gate Capital. To help finance the deal, the private-equity firm sold the chain’s real estate for $1.5 billion in a sale-leaseback, saddling the company with unfavorable leases that have been a headache ever since.
A combination of declining sales and rising costs since the pandemic have made those leases all the more difficult to manage.
Consumers, meanwhile, are not going out for seafood as much. Last year, sales at full-service seafood chains fell 2%, which followed a 9% decline in 2024, according to Technomic. The category has shrunk by $800 million since 2015.
“There just isn’t a demand for seafood restaurants like that,” said Joseph Sabbagh, president of seafood consultant Sax Maritime Associates. “They just can't support it with the cost of rents and the cost of seafood and everything that's going on.”
The chain in a statement offered a more upbeat view of its financial situation. It is tracking ahead of its revenue and earnings forecasts for 2026, though it did not provide specific numbers. And it denied a Bloomberg report that it had “burned through” much of its post-bankruptcy funding, saying that it has more than $30 million in liquidity.
The chain’s ownership, led by Fortress Investment Group, says it will continue to support the chain, contrary to Bloomberg’s report that it has become “reluctant” to do so.
Ownership has put more money into Red Lobster since an initial $70 million investment and plans to make additional investments to fund store renovations, a source close to the ownership group told Restaurant Business.
Most of the system is in need of an update, the person said, and it will start by remodeling three restaurants to see how they perform and go from there.
Opening new restaurants is also in Red Lobster’s plans. Last month, it hired Kristen Briede as its chief global development officer. She’ll be in charge of franchising both in the U.S. and internationally. Right now, all of Red Lobster’s domestic stores are company-owned.
The company also hired Brad Hill as CFO and EVP of transformation. Besides leading the finance department, Hill will spearhead Red Lobster’s real estate negotiations.
Both Briede and Hill previously spent many years at P.F. Chang’s, where they worked with Adamolekun, who was CEO of the Asian casual-dining chain from 2019 to 2023.
It was a sign that the chain intends to stick to the plan, despite the headwinds.
“These leadership changes reflect Red Lobster's commitment to strengthening its operational foundation, enhancing agility, and delivering an improved experience for guests as the company continues executing its long‑term growth plan,” the company said in a press release.