Red Lobster is embarking on a plan to achieve what its new leader, Damola Adamolekun, calls “the greatest comeback in the history of the restaurant industry.” A key component of this strategy involves bringing back the “Endless Shrimp” deal.

The Return of a Risky Promotion

The “Endless Shrimp” promotion previously contributed to the seafood chain’s bankruptcy filing in 2024 due to its high cost. Red Lobster is now planning a limited-time version of the all-you-can-eat offer, potentially launching as early as this month, according to sources familiar with the plans.

A Red Lobster representative stated the chain has “nothing to announce at this time,” but acknowledged the promotion’s popularity. “Endless Shrimp has long been a guest favorite and one of our most popular promotions,” they said. “We appreciate the enthusiasm and encourage guests to keep sharing their feedback with us.”

Past Mistakes with 'Endless Shrimp'

The decision to make Endless Shrimp available year-round in 2023 is widely considered a major factor in Red Lobster’s financial downfall. Prior to that, the promotion had been successful as a limited-time offering for two decades.

Offering Endless Shrimp daily resulted in an $11 million loss in a single quarter and contributed to a significant cash crunch. Court filings from the restructuring expert who served as CEO during bankruptcy indicated the decision “harmed” Red Lobster, creating “burdensome supply obligations.”

Ongoing Financial Challenges

Less than 18 months after exiting bankruptcy, Red Lobster is once again facing financial difficulties, projecting another loss-making year in 2025. Its new owners, a group of lenders, are reportedly hesitant to continue funding the 538-restaurant chain.

Efforts to Revitalize the Brand

CEO Damola Adamolekun has been actively promoting Red Lobster to younger and more diverse audiences. He launched a “Red Carpet Hospitality” initiative and revamped the menu, trimming it by 20% while retaining classics like cheddar bay biscuits and adding new items such as bacon-wrapped scallops and lobster bisque.

The company is also working to renegotiate leases at unprofitable locations and address the financial burden of aging restaurants. Adamolekun has emphasized the importance of continued financial support from the owners, stating his own future with the company may depend on it.

“Part of my role is to show this is a business worth investing in,” he said in a January interview with Bloomberg Businessweek. “Now, if I make that case, and I believe it, and I’m not getting a positive reaction? Then, you know, this is at-will on all sides.”