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Thai Union Group

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business1 year ago•10 min saved

"Red Lobster's Collapse: A Tale of Bankruptcy and Industry Shifts"

Red Lobster has filed for Chapter 11 bankruptcy and plans to sell its business to lenders, citing damaging decisions by its leading shareholder, Thai Union Group. Despite initial promises not to interfere, Thai Union embedded executives in Red Lobster's operations, leading to supply chain disruptions, management turnover, and poor strategic decisions, including a disastrous $20 endless shrimp promotion. Former employees and analysts argue that Thai Union's mismanagement, rather than external factors like the pandemic, was the primary cause of Red Lobster's decline.

via CNN|

#bankruptcy #business #corporate-mismanagement

business1 year ago•3 min saved

Red Lobster Contemplates Chapter 11 Bankruptcy Amid Rising Labor Costs

Red Lobster is reportedly considering filing for Chapter 11 bankruptcy to restructure its mounting debt, seeking advice from law firm King & Spalding to shed long-term contracts and renegotiate leases. The seafood restaurant chain's funds have been impacted by strenuous leases and rising labor costs, prompting discussions with its owner Thai Union Group Plc and key lender Fortress Investment Group. Thai Union Group, which took control of Red Lobster in 2021, recorded a share loss of roughly $19 million from the restaurant alone and included a $530 million non-cash impairment charge in its fourth-quarter earnings report. Additionally, California franchisee owners are grappling with surging labor costs following a new wage law that requires limited-service chains to pay their workers at least $20 hourly.

via New York Post |

#bankruptcy #business #labor-costs

business1 year ago•2 min saved

"Red Lobster's Endless Lobster Experience: From All-You-Can-Eat Shrimp to Free Lobster"

Red Lobster, facing significant financial losses, is attempting to recover by offering an "Endless Lobster Experience" as part of its annual Lobsterfest promotion, following a previous all-you-can-eat shrimp deal that led to deep operating losses. Minority investor Thai Union Group has announced its intent to exit Red Lobster due to substantial financial losses, with the company generating $22 million in losses for Thai Union Group across 2023. Despite the turmoil, Red Lobster is pushing forward with its Lobsterfest and offering 150 winners a two-hour complimentary feast of unlimited lobster, two sides, and Cheddar Bay Biscuits, while Thai Union Group looks for buyers for its stake in the company.

via CNN|

#annual-lobsterfest #business #endless-lobster-experience

business2 years ago•2 min saved

Unlimited Shrimp Devours Red Lobster's Profits

Red Lobster's decision to offer unlimited shrimp to customers backfired as Americans consumed so much shrimp that it cost the company $11 million in losses for the third quarter of 2023. Despite a 4 percent increase in customers, the popularity of the $20 bottomless shrimp deal led to diners passing up other menu items, resulting in an expected overall loss of $20 million for the year. Thai Union Group, a stakeholder in Red Lobster, has expressed concerns about the chain's profitability and may reconsider its involvement. The unlimited shrimp offer remains on the menu but now costs $25.

via Mentalfloss|

#business #customer-appetite #losses

business2 years ago•1 min saved

Red Lobster's Failed Endless Shrimp Deal: A Costly Mistake

Red Lobster's decision to make its "Ultimate Endless Shrimp" deal a permanent menu fixture backfired as the discounted offer contributed to operating losses of over $11 million in the third quarter. The deal, which allowed diners to choose two types of shrimp dishes unlimitedly for $20, attracted more customers but resulted in financial missteps. Red Lobster's parent company, Thai Union Group, has since raised the price of the deal to $25 at all 670 restaurants, expecting a $20 million loss for 2023.

via ABC News|

#business #endless-shrimp-deal #operating-losses