Food

Red Lobster bets on seafood boils to fuel comeback

The casual-dining chain is offering bagged seafood feasts as part of its Crabfest promotion, tapping into a rising seafood trend as it looks to bounce back from bankruptcy.
seafood boil
Red Lobster's seafood boils are available until Sept. 14. | Photo courtesy of Red Lobster

As Red Lobster continues to claw its way back from last year’s bankruptcy filing, it is turning to a menu item that has proven successful for other seafood chains: the seafood boil. 

The communal feasts, typically served in a plastic bag or spread across a paper-lined tabletop, have caught a wave of popularity in recent years, giving rise to a number of upstart seafood concepts. The 500-plus-unit Red Lobster is now getting in on the action with a pair of seafood boil options as part of its Crabfest promotion, which runs from June 23 to Sept. 14. 

The Mariner’s Boil features lobster tail, shrimp, crab, corn and potatoes for around $50, while the Sailor’s Boil has shrimp and smoked sausage for $30, though prices vary based on the market. They are tossed in a choice of garlic or Cajun butter or Old Bay seasoning and presented in a hot shake-and-serve bag. Both are also available in a family-size portion.

Chains specializing in seafood boils, such as 68-unit Hook & Reel and 26-unit Boiling Crab, have enjoyed a mini-boom in recent years. Last year, sales at seafood boil chains on Technomic’s Top 500 rose by an average of 3.8%, while overall seafood sales fell 0.3%.

Seafood boils are experiential and good for groups, two strategies that have generally worked well for restaurants coming out of the pandemic. And they tap into a Cajun food tradition that feels authentic and unique. 

“I think it’s in a great spot to grow,” said Andy Diamond, president of 23-unit Angry Crab Shack, in an interview last year. “Because the menu is flexible, we can add new sauces, we can do a lot to the menu without really changing who we are.”

Angry Crab’s sales grew 12% last year behind unit growth of 21%, according to Technomic. 

“So many of those chains have popped up in recent years, and those seafood boil concepts tend to appeal more to younger consumers than Red Lobster does,” said Kevin Schimpf, director of industry research for Technomic, in an interview last year.

For Red Lobster, the addition of seafood boils is part of an effort to return to relevance following its Chapter 11 bankruptcy filing last May.

The Orlando-based chain emerged with a new executive team, led by former P.F. Chang’s CEO Damola Adamolekun, and a new owner in Fortress Investment Group, which has pumped $60 million into the brand to help finance its turnaround. 

Early moves have been geared at both pleasing longtime customers and attracting new ones. For instance, Red Lobster is bringing hush puppies, a fan favorite, back to the menu. But it is also adding a selection of dishes under $20 and launching a happy hour with $5 cocktails in an appeal to price-sensitive consumers. 

Seafood boils seem to be similarly aimed at reeling in new customers, as does a new summer cocktail lineup, which includes the Purple Haze by Dre & Snoop made with the rappers’ Still G.I.N. brand.

“Whether you're a longtime Red Lobster lover or participating in Crabfest for the first time, we've got something to bring everyone joy,” said CMO Nichole Robillard in a press release unveiling the new options.

Adamolekun has also said the chain wants to improve its service and atmosphere to give customers a better overall experience. And Red Lobster is also ramping up its marketing efforts, with a series of TV ads touting its new offerings and a high-profile partnership with the WNBA’s Chicago Sky.

The chain has a large hole to climb out of. Sales plunged more than 22% last year as it closed more than 130 restaurants, per Technomic. 

Before that, it had been struggling for years with traffic declines, underinvestment and poor decision-making, most notably an all-you-can-eat shrimp promotion that cost it $11 million in a single quarter in 2023.

So far, the changes have generated some good buzz for the brand, with several posts about its seafood boils already going viral on social media. A Red Lobster representative had not responded to a question about how the promotion has performed so far.

And it may be too early to say just how well Red Lobster’s revival plan is working. According to data from Placer.ai, year-over-year traffic at the chain has been down in the double digits this year, although that comes with a big asterisk: The chain’s many closures over the past year could be skewing the data, the researcher noted.

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