Red Lobster’s famous Endless Shrimp promotion has long been a popular way for seafood lovers to indulge. For one flat price, you can enjoy unlimited shrimp and those addictive Cheddar Bay Biscuits to your heart’s content. It’s an amazing deal – but apparently not amazing for Red Lobster’s bottom line.
The seafood chain recently reported some surprising financial losses that were largely attributed to the costs of the unlimited shrimp offer So how much does Endless Shrimp really cost Red Lobster? And what changes have they made to try and reel things back in? Let’s dive into the details!
A Look Back at Endless Shrimp
To understand what went awry for Red Lobster, we need to first understand how the Endless Shrimp promotion worked. Endless Shrimp originally started back in 1994 as a seasonal menu deal that would run for a limited time as a way to draw in customers during slower months.
Typically it was offered in the late winter and early spring months before the big summer crowds arrived Customers loved being able to gorge on unlimited succulent shrimp without putting a huge dent in their wallets The deal was usually priced around $15.99 initially.
Over the years, Red Lobster would bring back Endless Shrimp for a few months at a time, often tweaking the promotion’s price point and participation rules. In recent years, Red Lobster bumped the Endless Shrimp price up to $19.99.
Customers could choose two shrimp preparations like scampi, grilled, or fried, along with unlimited Cheddar Bay Biscuits and side dishes like rice or broccoli. Endless Shrimp was so popular that hungry fans would try to calculate how to get the most shrimp for their buck!
Endless Shrimp Becomes Permanent
In June 2022, Red Lobster decided to take things up a notch by making Endless Shrimp available year-round as an everyday menu offering. Fans were thrilled at being able to indulge in unlimited shrimp whenever the craving struck.
But it turns out this permanent special has come at a steep cost for Red Lobster.
In their latest earnings report, parent company Thai Union Group revealed that Red Lobster took an $11 million operating loss in Q3 2022. They cited Endless Shrimp as a primary factor, admitting they underestimated how low the pricing was.
Essentially, the influx of customers taking advantage of the unlimited shrimp deal resulted in lower per-customer checks. With food costs already high due to inflation, Red Lobster found itself unable to turn a profit at that $19.99 price point.
Thai Union Group’s CFO said the intention was to drive traffic with Endless Shrimp, but “it didn’t work.” Making matters worse, supply chain issues over the summer left Red Lobster without enough shrimp supply to meet the demand.
How Much Does Endless Shrimp Cost Now?
After realizing that the year-round Endless Shrimp deal was unsustainable, Red Lobster was forced to make some big changes.
In October 2022, the seafood chain increased the Endless Shrimp price from $19.99 to $25.99. That’s nearly a 30% price hike!
The promotion also switched from being available daily to only being offered on certain days of the week.
While fans may be disappointed to pay more, Red Lobster clearly needed to adjust the pricing to be able to turn a profit. Industry experts say the previous $19.99 price point was likely below food cost and wasn’t sustainable.
The new Endless Shrimp price is in line with pricing from competitors like Outback Steakhouse, which offers unlimited shrimp on Mondays and Wednesdays for $27.99.
The Future of Endless Shrimp
While Endless Shrimp is here to stay on the Red Lobster menu, the company will likely continue tweaking the terms of the promotion to try and find the “sweet spot” that drives traffic without sacrificing profits.
We’ll have to wait and see whether the new $25.99 price point helps get Red Lobster’s financials back on track. But one thing’s for sure – Endless Shrimp fans are keeping their fingers crossed for Lobster to bring back some discounted deals and specials soon!
At the end of the day, Red Lobster’s struggles show the complexity of menu pricing for restaurants, especially on unlimited offers. Getting that math right can be the difference between crazy crowds and major losses. Here’s hoping the seafood chain can shore things up and keep the Endless Shrimp flowing in a financially sustainable way. Pass the biscuits!
Red Lobster’s “Ultimate Endless Shrimp” offer became more popular than expected, becoming a key factor in an $11 million loss in the third quarter
Endless shrimp did not mean endless success for Red Lobster.
The seafood chains “Ultimate Endless Shrimp” deal became more popular than expected, inadvertently becoming a key factor in a $11 million loss in the third quarter.
The $20 deal, in which customers could choose two kinds of shrimp to eat all the time, became permanent on Red Lobster’s menus in June. This month, Thai Union Group, which owns Red Lobster, said that the chain was on track to lose $20 million in 2023.
Now the endless shrimp deal costs $25.
Red Lobster earnings call reveals
On an earnings call, Thai Union Group CFO Ludovic Regis Henri Garnier said that the company knew the deal for endless shrimp came with a low price at first. The offer was intended to draw customers into restaurants, but orders exceeded expectations, he said.
“We wanted to boost our traffic, and it didnt work,” Garnier told investors, according to Restaurant Business Magazine. “We want to keep it on the menu. And of course we need to be much more careful regarding what are the entry points and what is the price point we are offering for this promotion.”
Red Lobster representatives didnt return USA TODAYs calls for comment.
The Truth About Red Lobster’s Endless Shrimp
Why did Red Lobster raise the price of the ‘ultimate endless shrimp’ deal?
Red Lobster has since raised the price of the deal to $25. The “Ultimate Endless Shrimp” deal reeled in too many hungry customers at Red Lobster and now the company is turning the tide after reporting millions in operating losses.
How much is endless shrimp at Red Lobster?
Price, of course, is one of the most important considerations for most people when they’re dining out. Endless Shrimp is priced at $20, which is easily the best deal on Red Lobster’s menu. Take, for example, the two-entree combo platter, which comes with two sides.
How much does shrimp Linguini Alfredo cost at Red Lobster?
For comparison, one regular order of Shrimp Linguini Alfredo costs $16 at a Red Lobster in New Jersey right now, so customers need only shell out a few extra dollars in order to get endless helpings of shrimp. However, Red Lobster’s parent company, Thai Union Group, just revealed that it has decided to raise the price of the deal to $25.
How much did Red Lobster’s shrimp deal cost the company?
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