Red Lobster Abruptly Closes Dozens of Restaurants

Casual Dining Struggles Continue as Red Lobster Shuts Down

Declining Sales and Market Share Cited for Closures

Red Lobster, the popular casual dining seafood chain, has abruptly closed dozens of restaurants across the United States. The closures come amid ongoing struggles for the company and the broader casual dining industry. In recent years, casual dining has faced challenges from consumers' shifting preferences towards fast-casual and fine dining options. Red Lobster, in particular, has been suffering from declining sales and market share. According to Technomic, casual dining's share of the restaurant industry has dropped from 36% in 2013 to 31% in 2023. The closures of Red Lobster restaurants are part of the company's broader plan to restructure its business. In November 2023, Red Lobster's parent company, Thai Union Group, announced plans to close underperforming locations and focus on improving the chain's overall performance. The specific reasons behind the decision to close each particular Red Lobster restaurant were not disclosed. However, the company's financial struggles and the broader challenges facing the casual dining industry are likely significant factors. The closures will impact the jobs of hundreds of employees and leave communities without a local Red Lobster restaurant.