Joe’s Crab Shack was once a rapidly growing casual seafood chain, best known for steaming buckets of Dungeness crab, lobster, clams and mussels. At its peak around 2014, there were close to 140 Joe’s Crab Shack locations across the United States. However, in recent years the company has gone through business and ownership changes, with many restaurants shutting down. This begs the question – did Joe’s Crab Shack go out of business? Let’s take a closer look.
A Brief History of Joe’s Crab Shack
Joe’s Crab Shack first opened its doors in Houston, Texas in 1991 The chain quickly expanded in the 1990s and 2000s under several different parent companies. In 2006, Joe’s Crab Shack was purchased by Landry’s Restaurants By 2013, there were 131 locations total.
In late 2013 Landry’s sold the chain to Ignite Restaurant Group. Under Ignite, Joe’s Crab Shack continued growing and reached a peak of 137 restaurants by 2014. However financial turmoil soon followed.
Beginning in 2015, Ignite Restaurant Group started rapidly losing money, with the company reporting a $16 million loss in 2016 The problems persisted and Ignite filed for bankruptcy in June 2017. As part of the bankruptcy proceedings, Ignite sold Joe’s Crab Shack back to its original owner, Landry’s, for $57 million.
Why Did Joe’s Crab Shack Decline Under Ignite Restaurant Group?
There were several factors that led to the downfall of Joe’s Crab Shack while under ownership of Ignite Restaurant Group between 2013 and 2017:
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Lawsuits – Employees sued some locations for labor law violations. This bad publicity likely hurt the brand image.
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No Tipping Experiment – An attempt to switch to no tipping led to an 8-10% sales decline. Customers disliked the change.
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Offensive Memorabilia – One location had a racially offensive photo used as decor. This incident drew national criticism.
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Macaroni Grill Purchase – Buying this failing chain saddled Ignite with major debt.
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Poor Leadership – Ignite made poor management decisions that led to massive losses.
By mid 2017, with sales continuing to drop, Ignite had no choice but to declare bankruptcy and sell Joe’s Crab Shack to Landry’s to recover any remaining value from the declining brand.
What Happened After Landry’s Repurchased Joe’s Crab Shack?
When Landry’s bought back Joe’s Crab Shack in August 2017 they immediately started closing underperforming locations. Within months of the acquisition, over 40 low-sales restaurants were shuttered. This rapidly reduced the total number of Joe’s Crab Shacks from around 130 down to an estimated 60 locations nationwide.
Additional closures continued in 2018 and 2019. By 2020, there were only about 30 Joe’s Crab Shack restaurants left according to various reports. However, the brand did not fully shut down.
Is Joe’s Crab Shack Still in Business Today?
Yes, Joe’s Crab Shack is still in business as of 2023. The company website currently lists 18 open locations, primarily situated in coastal tourist destinations like Myrtle Beach, SC, Atlantic City, NJ, and Ocean City, MD.
A few restaurants are also holding on in some landlocked states such as Colorado, Oklahoma, and Illinois. While far reduced from its peak number of locations, Landry’s has managed to keep a fraction of Joe’s Crab Shack restaurants operating.
Why Did So Many Joe’s Crab Shacks Close?
There are a few key reasons why approximately 90% of Joe’s Crab Shack restaurants have closed over the past 5 years:
- Parent company bankruptcy – This allowed mass closures.
- Rising costs – Seafood, rent, labor costs went up.
- Stiff competition – More diners choosing fast casual chains.
- Dated brand – Consumers want a more modern atmosphere.
- Delivery apps – People eating at home more instead of dining out.
While seafood is still popular, the casual dining segment has declined. Combined with poor leadership decisions and a bankruptcy, Joe’s Crab Shack saw dramatic drops in customers and sales. Landry’s made the financial decision to shutter all but the top performing locations.
Could Joe’s Crab Shack Make a Comeback?
While the future is uncertain, Joe’s Crab Shack still has an iconic brand name in the seafood market. With the right leadership and strategies, it’s possible the chain could stage a modest comeback by:
- Focusing on the best-performing markets
- Opening smaller format express-style locations
- Expanding seafood boil options and DIY menus
- Adding more contemporary interior design
- Improving online ordering for delivery
- Highlighting sustainably sourced seafood options
Joe’s Crab Shack faces an uphill battle after years of closures and brand deterioration. But by adapting to current dining trends and improving the customer experience, the chain could potentially win back loyal patrons and attract new demographics. The company still has an opportunity to refresh the brand and write a new chapter.
Joe’s Crab Shack rose to prominence in the 1990s and 2000s before suffering declining sales and mass closures after 2013. While “did Joe’s Crab Shack go out of business?” was a valid question for a few years, the company is still operating a modest number of locations concentrated primarily in coastal tourist regions. However, with 90% of restaurants closed from its peak, Joe’s future in the casual dining market remains uncertain.
The Real Reason Why Joe’s Crab Shacks Are Disappearing
Is Joe’s Crab Shack still open?
There were almost 140 Joe’s spots available for your dining and crab cracking pleasure in 2014. Today, the Joe’s Crab Shack website reveals there are only 57 locations still operating. In 2016, the chain reported an operating loss of $16.6 million. The first Joe’s Crab Shack opened in Houston, Texas in 1991.
What happened to Joe’s Crab Shack Clifton?
The chain of seafood restaurants shuttered its Clifton location on Dec. 31. It was located at 405 Allwood Rd. in The Promenade Shops at Clifton. “Due to a natural lease expiration, Joe’s Crab Shack Clifton restaurant closed on December 31, 2023,” Terry Turney, COO of Joe’s Crab Shack, told NJ Advance Media.
Who owns Joe’s Crab Shack?
The company was then won in a bankruptcy auction by Landry Inc.’s Tilman Fertitta, the Houston billionaire who owned Joe’s Crab Shack in the 1990s before selling it in 2006 to JCS Holdings LLC for $192 million. Fertitta, the new owner of the NBA’s Houston Rockets franchise, bought the two brands for $57 million this time around.
Where is Joe’s crab shack located?
Joe’s Crab Shack’s lone New Jersey restaurant is located in Deptford. The seafood chain is popular for its seafood offerings. The menu consists of seafood platters, pasta, lobster, crab legs, shrimp, fish, steak and po’ boy sandwiches. Joe’s Crab Shack operates 30 locations nationwide. Our journalism needs your support.