How Much Does Red Lobster’s Endless Shrimp Deal Cost?

Red Lobster’s famous Endless Shrimp promotion has long been a popular way for seafood lovers to indulge in all-you-can-eat shrimp at a great value. The deal allows customers to enjoy unlimited servings of a variety of breaded and grilled shrimp dishes, along with signature Cheddar Bay Biscuits.

But how much does this bountiful shrimp feast really cost? Let’s take a look at the pricing and economics behind Red Lobster’s Endless Shrimp special.

The Evolution of Endless Shrimp Pricing

When Endless Shrimp first launched back in the 1990s, it started out at just $7.99 for unlimited shrimp and biscuits. This low price point made it extremely popular among customers.

Over the years the price gradually increased as food costs and operational expenses rose. By the 2010s Endless Shrimp was priced around $15.99. Customers continued flocking to Red Lobster to take advantage of the deal.

In June 2022, Red Lobster made Endless Shrimp a permanent menu item instead of a limited-time offer. It was initially priced at $19.99 upon this launch.

However, by September 2022, Red Lobster raised the Endless Shrimp price to $24.99 due to larger than expected losses from the popular promotion.

In a quarterly earnings call, Red Lobster’s parent company cited the previous $19.99 price as too low to turn a profit. While the deal succeeded in driving traffic to restaurants, it was not sustainable at that low cost.

Why Endless Shrimp Caused Losses for Red Lobster

There are a few key reasons the $19.99 Endless Shrimp deal cost Red Lobster millions in losses:

• Food costs – Shrimp is an expensive protein. With unlimited servings, food costs per customer were very high.

• Loss of additional sales – Customers filled up on unlimited shrimp and biscuits, so they didn’t order more profitable drinks, appetizers, or desserts.

• Increased labor costs – Serving endless shrimp depleted kitchen staff more quickly. More cooks and dishwashers were needed.

• Customer traffic strains – High demand resulted in long wait times and crowded restaurants, hurting customer experience.

By raising the price to $24.99, Red Lobster aims to better cover its shrimp and labor costs while still offering a good value. The higher price point may also deter some diners from eating 5-6+ servings of shrimp in one sitting.

What Does the Endless Shrimp Deal Include?

The current Endless Shrimp deal offers customers two shrimp preparations of their choice out of a selection of 8 options:

• Garlic Shrimp Scampi
• Wood-Grilled Shrimp
• Walt’s Favorite Shrimp
• Crispy Popcorn Shrimp
• Shrimp Linguini Alfredo
• Parrot Isle Jumbo Coconut Shrimp
• Blackened Jumbo Shrimp
• Hand-Breaded Jumbo Shrimp

The $24.99 deal includes unlimited shrimp servings and a side of Red Lobster’s Cheddar Bay Biscuits.

Some things to note:

• Availability of shrimp flavors may vary by location

• Side choices are limited to steak fries, rice, broccoli, or coleslaw

• Additional charges apply for upgrading to premium sides

• The deal only applies to dine-in orders

For $24.99 in most markets, it’s still considered a great value for all-you-can-eat shrimp. Adding a beverage, appetizer, or dessert can quickly elevate the total check amount.

Estimated Cost Breakdown for Red Lobster

To estimate Red Lobster’s costs associated with the Endless Shrimp promotion:

• Shrimp supply cost: Approximately $5-7 per pound. Offering 5-6 servings of 5-8 shrimp per guest at $24.99 means they need to keep supply costs under $2-3 per serving to maintain profit margins.

• Labor cost: With kitchen staff prepping dishes at a rapid rate, labor per guest is likely $5-8. Servers also have to work harder to manage larger order volumes.

• Overhead costs: Dining room occupancy and added sanitation needs could cost $2-3 per guest. Higher volume also strains utilities.

• Profit margin: Restaurants ideally want to keep food costs under 30%. With fixed costs accounted for, Red Lobster probably hopes to make around $8-10 profit per Endless Shrimp guest.

The previous $19.99 price point left little room for profit once food, labor, overhead, and service costs were factored in. The updated $24.99 price allows for a healthier profit margin while still offering solid value.

Is Endless Shrimp Worth It for Customers?

At $24.99 in most Red Lobster locations, Endless Shrimp remains a good deal for hungry shrimp fans. To gauge the value:

• A single order of hand-breaded shrimp averages $17. So you’d need to eat 3-4 servings to “break even.”

• Red Lobster’s Fisherman’s Platter with fried and grilled shrimp is $22.99. Endless Shrimp offers more variety and portions.

• Many unlimited appetizer specials at chain restaurants run $15-20. Red Lobster’s deal specifically focuses on shrimp.

• Grocery store frozen shrimp costs $10-15 per pound. Endless Shrimp provides a nice shortcut for a seafood feast.

For big shrimp eaters who skip appetizers and desserts, Endless Shrimp gives you the most bang for your buck. Those with smaller appetites still get their fill without waste or leftovers.

The Bottom Line on Endless Shrimp Pricing

Red Lobster’s Endless Shrimp promotion has gone through pricing shifts since its 1990s debut. While still a customer favorite, losses from the previous $19.99 price point forced Red Lobster to raise it to $24.99 in most locations.

This balances value for guests with sustainable profit margins for restaurants. Customers can still enjoy virtually limitless shrimp along with biscuits, salad, and their choice of side.

Endless Shrimp pricing may continue evolving. But for now, seafood aficionados can shell out $24.99 for a decadent shrimp feast at their local Red Lobster. Just beware that all that shrimp can add up cost-wise for the restaurant. Moderation is key to keeping this special sustainable.