{"id":2114787,"date":"2023-12-03T19:48:07","date_gmt":"2023-12-04T00:48:07","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/red-lobsters-ultimate-shrimp-deal-backfires-as-cash-strapped-americans-eat-chain-into-11-million-loss\/"},"modified":"2023-12-03T19:55:52","modified_gmt":"2023-12-04T00:55:52","slug":"red-lobsters-ultimate-shrimp-deal-backfires-as-cash-strapped-americans-eat-chain-into-11-million-loss","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/red-lobsters-ultimate-shrimp-deal-backfires-as-cash-strapped-americans-eat-chain-into-11-million-loss\/","title":{"rendered":"Red Lobster&#8217;s shrimp deal fails, causing $11M loss as Americans struggle financially"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fred-lobsters-ultimate-shrimp-deal-backfires-as-cash-strapped-americans-eat-chain-into-11-million-loss%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2114787&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Red Lobster&#8217;s &#8216;Ultimate Shrimp&#8217; Deal Backfires\u2064 as Cash-Strapped Americans Eat Chain \u200bInto $11 Million Loss<\/h2>\n<p>Who would\u2019ve\u200b thought that Red \u200bLobster would underestimate the demand for fried and breaded shrimp?<\/p>\n<p>An <strong>\u201cUltimate Endless Shrimp\u201d<\/strong> all-you-can-eat deal offered\u2063 at the seafood chain\u2019s locations has become a source of \u200bfinancial losses for the company, according to <a href=\"https:\/\/www.usatoday.com\/story\/money\/food\/2023\/11\/27\/red-lobster-endless-shrimp-earnings-report\/71723659007\/\" target=\"_blank\" rel=\"noopener\">USA Today<\/a>.<\/p>\n<p>The <strong>Ultimate \u2062Shrimp deal<\/strong> enables customers to\u200c choose two varieties \u200cof\u2064 shrimp \u2014\u200b of\u200c which they would be\u2063 served \u2064an unlimited amount of servings.<\/p>\n<p>The\u200c business strategy behind the deal backfired, according to the CFO of\u200d the chain\u2019s parent company, Ludovic Regis Henri Garnier.<\/p>\n<p>Garnier disclosed \u200dthe thousand cuts\u2063 by <a href=\"https:\/\/www.westernjournal.com\/ap-man-stuffs-shrimp-pants-california-grocery-thefts\/\" target=\"_blank\" rel=\"noopener\">shrimp<\/a> in \u200ba conference\u200c call with corporate investors, according to <a href=\"https:\/\/www.restaurantbusinessonline.com\/operations\/red-lobster-goes-overboard-endless-shrimp-deal\" target=\"_blank\" rel=\"noopener\">Restaurant Business Magazine<\/a>.<\/p>\n<p>\u201cWe\u200d wanted\u2064 to boost our traffic, and it didn\u2019t work.\u201d<\/p>\n<p>\u201cWe want to keep it on the menu.\u2063 And of course we need \u200cto \u2062be much more careful\u2062 regarding what are the entry \u2063points and what is the price point we are offering for this\u200c promotion.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">Red \u2063Lobster\u2019s\u2064 <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bud-light-suffers-major-new-sales-blow\/\" title=\"Bud Light's Sales Take a Big Hit\">parent company reported<\/a> an $11.3M operating loss last quarter \u200d\u201cin part due to customers taking advantage of its \u2064Ultimate Endless Shrimp deal \u2014 where $20 (now $25) bought you as much\u200b shrimp as you could stomach in one sitting.\u201d <a href=\"https:\/\/t.co\/igBUnueBxC\">https:\/\/t.co\/igBUnueBxC<\/a> <a href=\"https:\/\/t.co\/YNGQXbPV5M\">pic.twitter.com\/YNGQXbPV5M<\/a><\/p>\n<p>\u2014 Scott Lincicome \u2063(@scottlincicome) <a href=\"https:\/\/twitter.com\/scottlincicome\/status\/1730000260867428393?\">November 29, 2023<\/a><\/p>\n<\/blockquote>\n<p>Some\u200d fans of the promotion lacked remorse for eating into Red Lobster\u2019s\u200c profits.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">I was a \u2063big part of this, I once\u2063 took a\u2063 quick\u2063 nap \u2064in a booth\u200c so I could keep eating more shrimp<\/p>\n<p>\u2014 Hunter \u200cDale (@hunterdale6) <a href=\"https:\/\/twitter.com\/hunterdale6\/status\/1730024806966243720?\">November 30, 2023<\/a><\/p>\n<\/blockquote>\n<p>The deal \u2014\u200c introduced in June \u2014 did succeed in\u200b driving a 4 percent increase in traffic to \u200cRed \u200bLobster locations, at a cost to \u200bthe company\u2019s <a href=\"https:\/\/www.westernjournal.com\/solomon-elon-musk-triggers-warn-law-mass-layoffs-now-facing-nightmare-situation\/\" target=\"_blank\" rel=\"noopener\">profits<\/a>.<\/p>\n<p>The company is \u200cexpecting to incur a $20 \u200cmillion overall loss for the year, and $11.3 million this quarter.<\/p>\n<p>Ultimate \u2062Shrimp stays on the menu, for now \u2014 although its price point has\u2064 been increased to $25.<\/p>\n<p>Garnier described Red\u2062 Lobster\u2019s \u200bdifficulties in appealing to\u200d inflation-hit customers increasingly mindful\u2063 of costs while maintaining the company\u2019s overall profitability.<\/p>\n<p>The CFO\u200c indicated that Red Lobster had\u2062 brought in <a href=\"https:\/\/www.westernjournal.com\/video-mitt-romney-finally-admits-real-allegiance-whole-time\/\" target=\"_blank\" rel=\"noopener\">corporate consultants<\/a> to aid \u2062in the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/how-to-show-lockdowns-are-killing-more-people-than-the-virus\/\" title=\"How To Show Lockdowns Are Killing More People Than The Virus\">long-term<\/a> economic strategy\u2063 of the chain.<\/p>\n<p>\u201cWe are\u200b really monitoring very closely the situation \u2063in order to improve\u200d the operation and the efficiency and the marketing of Red Lobster.\u201d<\/p>\n<p>\u201cAnd then \u200con the flip side, we also have the support from the advisors to see, what are we doing in the mid-term and also in \u200bthe long-term with\u2062 the business?\u201d<\/p>\n<hr>\n<p>The\u2064 post <a rel=\"nofollow\" href=\"https:\/\/www.westernjournal.com\/red-lobsters-ultimate-shrimp-deal-backfires-cash-strapped-americans-eat-chain-11-million-loss\/\">Red Lobster&#8217;s &#8216;Ultimate Shrimp&#8217; Deal \u200cBackfires as Cash-Strapped Americans Eat Chain Into $11 \u2064Million Loss<\/a> appeared first on\u2062 <a rel=\"nofollow\" href=\"https:\/\/www.westernjournal.com\">The Western Journal<\/a>.<\/p>\n<p> <\/p>\n<h2> How\u2063 did customers taking <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/9-horror-movie-cliches-that-need-to-die\/\" title=\"9 Horror Movie Cliches That Need to Die\">full advantage<\/a> of the Ultimate Endless Shrimp deal contribute\u2064 to Red Lobster&#8217;s \u2062operating \u200dloss?<\/h2>\n<p><span>  Ss=&#8221;twitter-tweet&#8221;><\/p>\n<p dir=\"ltr\" lang=\"en\">I\u2019m sorry but if Red Lobster puts out an all you can eat shrimp promotion, I\u2019m going to take\u200d full advantage.<\/p>\n<p>\u2014 Jake \u2064\ud83d\udca7 (@hoodiejake) <a href=\"https:\/\/twitter.com\/hoodiejake\/status\/172962848500946',\" target=\"_blank\" rel=\"noopener\">November 29, 2023<\/a><\/p>\n<\/blockquote>\n<p>Red \u2064Lobster\u2019s\u200c parent company, Darden \u200bRestaurants, reported an \u200doperating loss of $11.3 million in the last quarter, partly due to customers taking\u2064 full advantage of the Ultimate \u2063Endless Shrimp deal.<\/p>\n<p>The promotion allowed customers to enjoy as\u2063 much shrimp as\u2062 they could eat\u200c in \u200bone sitting for a set price. Originally priced at $20, the deal was later increased to $25. However, this adjustment did not \u2064stem the losses.<\/p>\n<p>The popularity of the deal caught Red Lobster by \u200bsurprise, leading to \u200ba \u2064<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/facebook-temporarily-bans-ads-for-weapons-accessories-ahead-of-inauguration-day\/\" title=\"Facebook Temporarily Bans Ads for Weapons Accessories Ahead of Inauguration Day\">significant increase<\/a>\u2064 in shrimp consumption that exceeded their \u2062expectations. Customers\u200b viewed the offer as an\u2064 opportunity to\u200b indulge without\u2062 worrying about the cost, resulting in excessive shrimp consumption that was not financially sustainable for the restaurant \u2064chain.<\/p>\n<p>Red\u200b Lobster has been struggling\u2062 to recover from the losses incurred by the Ultimate Endless Shrimp deal. The\u2062 company had \u200bhoped the promotion would boost customer traffic and\u200c ultimately increase profits. However, \u2063the \u2062opposite happened,\u200d causing a strain on the chain&#8217;s finances.<\/p>\n<p>Despite the financial setback, Red Lobster plans to keep\u200b the Ultimate \u2062Shrimp\u2063 deal on the menu. The company\u2062 recognizes the need for \u200dbetter strategic planning and pricing to ensure the promotion does not place such a heavy \u2063burden on their bottom line in the future.<\/p>\n<p>Red Lobster&#8217;s experience with the\u200c Ultimate Endless Shrimp deal serves \u2063as a cautionary tale for other\u2064 businesses. It highlights the importance\u2062 of accurately forecasting demand, setting appropriate prices, and managing resources effectively.\u2062 While promotions can be\u200c powerful tools to attract customers, they must be \u2064carefully planned and executed to avoid significant financial losses.<\/p>\n<p>As for Red Lobster, they\u2063 have learned a valuable \u2062lesson \u200dand will likely approach future promotions with a more \u2063cautious \u2064mindset, ensuring they have a solid\u200d financial plan in place before offering such enticing deals to\u200c their customers.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Red Lobster&#8217;s &#8220;Ultimate Endless Shrimp&#8221; deal, allowing customers to enjoy unlimited fried and breaded shrimp, has surprisingly led to financial losses for the company. The seafood chain underestimated the demand for this offer, resulting in unexpected consequences, as reported by USA Today. Customers can select two types of shrimp under this deal<\/p>\n","protected":false},"author":666,"featured_media":2114788,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[548],"tags":[],"class_list":["post-2114787","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-conservative-news-daily"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2114787","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/666"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2114787"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2114787\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2114788"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2114787"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2114787"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2114787"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}