Red Lobster, the famous seafood restaurant chain, has been a part of American dining for over 50 years. But lately, it has been in the news for reasons that aren’t so tasty. The company recently filed for bankruptcy, which has many people wondering: who owns Red Lobster? Let’s find out who owns this restaurant chain and see how it got to where it is today.
Red Lobster’s Beginnings
Back in 1968, Bill Darden and Charley Woodsby opened the first Red Lobster in Lakeland, Florida because they wanted to bring seafood to people who didn’t live near the coast. The idea was a hit and people loved the chance to eat lobster and shrimp in their own towns.
Just two years later, a big company called General Mills bought Red Lobster and, with their help, Red Lobster grew fast. The chain made a name for itself as an affordable seafood restaurant for middle-class families. In the 1980s, you could find Red Lobster restaurants all over America and even in some parts of Canada.
Who Owns Red Lobster: The Darden Years
In 1995, General Mills decided to streamline its operations. As a result, they spun off its restaurant business into a new company called Darden Restaurants. This company owned Red Lobster, Olive Garden, and other restaurant chains. Under Darden, Red Lobster did well for many years. But by 2013, things weren’t looking so good. Darden decided it was time to sell Red Lobster. They thought the chain was holding them back from making more money.
The Golden Gate Capital Years
In 2014 Golden Gate Capital bought Red Lobster for $2.1 billion. That’s a lot of money, and to help pay for it, they made a deal to sell Red Lobster’s buildings and land, then rent them back. This saved money at first, but it meant Red Lobster had to pay a lot in rent every year.
During this time, Red Lobster faced many challenges. People’s eating habits were changing. More folks were choosing fast-casual restaurants like Chipotle instead of sit-down places like Red Lobster. The company tried different things to bring in customers, but it wasn’t easy.
Who Owns Red Lobster: Thai Union Steps In
In 2016, Thai Union Group, a big seafood company from Thailand, bought part of Red Lobster. They thought they could help make the restaurant better. So, by 2020, Thai Union owned all of Red Lobster.
But owning Red Lobster turned out to be harder than Thai Union expected. The COVID-19 pandemic hit restaurants hard. People weren’t going out to eat as much. Red Lobster, like many restaurants, struggled to make money.
Other problems made things worse. The cost of seafood went up. It became more expensive to pay workers. Together with this, all those buildings Golden Gate Capital sold saddled Red Lobster with hefty rent payments that only increased over time.
Thai Union tried to fix things by implementing some changes. They changed Red Lobster’s menu and tried new promotions. One big move was making their “Endless Shrimp” deal available all the time. This seemed like a good idea, but it backfired. So many people ordered endless shrimp that Red Lobster lost money on the deal!
By early 2024, the Thai Union had seen enough. They announced they wanted to stop owning Red Lobster. The investment wasn’t working out like they had hoped.
Who Owns Red Lobster: Bankruptcy and an Uncertain Future
In May 2024, Red Lobster filed for Chapter 11 bankruptcy. This doesn’t mean the restaurants are closing for good. Instead, it’s a way for the company to try to fix its money problems.
As part of the bankruptcy, Red Lobster made a deal with the banks it owes money to. These banks might end up owning Red Lobster if no one else buys the company. Red Lobster also has some money to keep running while it figures things out and it will close some restaurants that aren’t doing well.
Some companies are interested in buying Red Lobster, like Fortress Investment Group. Intriguingly, this investment firm is partly owned by the same person who owns the Milwaukee Bucks basketball team. However, they believe their expertise might be able to help Red Lobster turn things around and become successful again.
Who Owns Red Lobster: Problems Behind the Scenes
Red Lobster has struggled in the past years for so many reasons. Here are some of them:
- COVID-19 hurt many restaurants, and Red Lobster was no exception.
- The price of seafood, worker pay, and rent all went up.
- Red Lobster had too many locations and some locations weren’t making enough money.
- Some of their food promotions, like the “Endless Shrimp” deal, cost more than they brought in.
What’s Next for Red Lobster?
Right now, Red Lobster’s future is uncertain but the company isn’t giving up. They’re working on a plan to make the business better. This might include the following:
- Closing some restaurants that aren’t doing well
- Changing their menu to offer food people want at prices that make sense
- Finding ways to save money on things like rent and food costs
- Getting a new owner who can help turn things around
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