What happens when promos don’t work as expected

Restaurant Rewind: If the offer proves more or less enticing than anticipated, chaos can follow. Here are some prime examples from the industry’s past.

Red Lobster has been making headlines for offering an all-you-can-eat deal that worked too well as a traffic driver. Management acknowledged that the spike in food costs ate about $11 million in profits for the third quarter.

The situation is hardly unprecedented in the restaurant business—even for Red Lobster itself. Two decades ago, it similarly saw margins crunched by an all-you-can-eat crab legs deal.

Join us as we look back at some of the memorable instances of restaurant chains over- or underestimating how popular a bargain deal would prove to be. Hit the Play button for a crash course on Riblets gluts and Mighty Wings over-supplies.

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