Red Lobster closed at least 48 restaurants across the country and filed for bankruptcy within the last week.
Here’s a little bit about how the seafood chain all began, including who owns Red Lobster.
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Red Lobster is one of the most recognizable seafood restaurant chains in America. As one of the largest casual dining brands in the country, Red Lobster has gone through several different owners over its 50+ year history. So who owns Red Lobster today and how has the ownership changed hands over the decades?
The Early Days Under General Mills
Red Lobster was founded in 1968 by Bill Darden and Charley Woodsby in Lakeland, Florida. The first restaurant was meant to be a “harbor for seafood lovers” and proved popular enough to warrant rapid expansion in the 1970s.
In 1970, just two years after Red Lobster was established, the growing seafood chain was acquired by General Mills. With the backing of this large consumer goods corporation, Red Lobster experienced major growth throughout the 1970s and 1980s. By the mid-1980s, there were over 400 Red Lobster locations across North America.
General Mills helped grow the Red Lobster brand for 25 years before making a major corporate move in 1995.
Becoming Part of Darden Restaurants in 1995
In 1995, General Mills decided to spin off Red Lobster and their other restaurant chains into an independent publicly-traded company named Darden Restaurants This new company was built around Red Lobster and Olive Garden, another chain owned by General Mills.
Red Lobster thrived under the leadership of Darden Restaurants The seafood restaurants continued expanding across the United States and Canada throughout the 1990s and 2000s While owned by Darden, Red Lobster introduced popular menu items like Cheddar Bay Biscuits in the 1990s, which became synonymous with the brand.
However, after owning Red Lobster for almost 20 years Darden faced pressure from investors and made the decision to sell the seafood chain in 2014.
Golden Gate Capital Purchases Red Lobster in 2014
In May 2014, the Darden corporation announced an agreement to sell Red Lobster to Golden Gate Capital, a private equity firm, for $2.1 billion. The sale was finalized two months later in July, ending Darden’s ownership of Red Lobster.
Under new ownership, Red Lobster still operated mostly the same, with a focus on affordable seafood, Cheddar Bay Biscuits, and classic menu offerings. The biggest change was a new corporate headquarters built in Orlando in 2015 after the sale.
Golden Gate Capital oversaw several new marketing campaigns and menu promotions for Red Lobster before eventually selling their stake in 2020 to another big investor.
Thai Union Becomes Red Lobster Owner in 2020
After six years of ownership, Golden Gate Capital sold Red Lobster in 2020 to Thai Union, one of the world’s largest seafood producers. An investor group led by Thai Union purchased Red Lobster for $580 million.
As an established seafood supplier, Thai Union seemed like a natural fit to acquire the world’s largest seafood restaurant company. However, Thai Union ended up putting Red Lobster up for sale just two years later as it looked to sell assets and refocus on its core seafood supply business.
A New Owner – Fortress Investment Group – in 2024
In mid-2024, after filing for bankruptcy protection, Red Lobster was sold to Fortress Investment Group LLC. The private equity firm purchased the struggling seafood chain for $150 million.
Fortress Investment Group said they planned to help turn Red Lobster around by improving menu offerings, remodeling restaurants, and enhancing the customer experience. The new owners also wanted to expand Red Lobster’s international presence after closing underperforming U.S. locations.
As of late 2024, Fortress Investment Group is the current owner and operator of Red Lobster restaurants. They are the fourth owner of the seafood brand since its founding over 50 years ago.
The Bottom Line
Red Lobster has been owned by several large corporations and investment companies over the decades. After many years of prosperity under Darden Restaurants, recent declines led to new ownership and bankruptcy. It remains to be seen if the latest owner, Fortress Investment Group, can successfully revive the Red Lobster brand back to its former glory. But one thing is clear – the famous cheddar biscuits aren’t going anywhere!
Who owns Red Lobster?
Red Lobster started in Lakeland, Florida, in the late 1960s. Since then, ownership in the brand has changed hands several times, according to archive coverage from the Lakeland Ledger.
- The first Red Lobster opened in 1968 along U. S. 92 with a view of Lake Parker in Lakeland, Florida. The restaurant became a popular spot for people in the area right away. Restaurateur Bill Darden, a Lakeland native, founded Red Lobster. Darden partnered with Charles Woodsby, founder of Texas Cattle Co.
- In 1970, General Mills bought the first five Red Lobster restaurants and turned them into a nationwide chain with more than 700 restaurants in the U.S. S. and Canada.
- General Mills split off the chain in 1995, making Darden Restaurants, a public company. Olive Garden, Longhorn Steakhouse, Bahama Breeze, the Capital Grille, Seasons 52, and the Yard House were some of the other chain restaurants that Darden Restaurants ran.
- Darden Restaurants said on May 16, 2014, that it would sell Red Lobster to Golden Gate Capital for $225 million. A 2014 Florida Times-Union story said that the company spent $1 billion to try to improve the parent company’s finances. Darden said on July 28, 2014, that the sale of Red Lobster to Golden Gate Capital was complete.
- According to a news release, Golden Gate sold 25% of Red Lobster to the Thai Union in 2016 and then sold the rest of its interest in Red Lobster to the Thai Union in 2020.
- Nations Restaurant News reports that Thai Union said in January 2024 that it was going to sell off the rest of its shares in the chain.
Why did Red Lobster file for Chapter 11 bankruptcy?
Late Sunday night, the company filed for Chapter 11 bankruptcy. In a statement, it said, “it intends to use the proceedings to drive operational improvements, simplify the business by reducing the number of locations, and pursue a sale of substantially all of its assets as a going concern.” In these filings, Red Lobster has made a stalking horse purchase agreement. This means that the company will sell its business to a company formed and run by its current term lenders. “.
Red Lobsters restaurants will remain open and operating as usual during the Chapter 11 process, according to The Florida Times-Union.
In a news release, Red Lobster’s new CEO Jonathan Tibus said, “This restructuring is the best path forward for Red Lobster.” It allows us to address several financial and operational challenges and emerge stronger and re-focused on our growth. The help we’ve gotten from our lenders and sellers will help us finish the sale process quickly and easily while still taking care of our employees and guests. “.
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Who is red lobster owned by?
Thai Union is a publicly traded global seafood supplier and previously invested $575 million in the chain in 2016 for a 25% stake in the company and another 24% stake that it will be able to convert in 2026. Red Lobster will remain headquartered in Orlando, Florida, led by CEO Kim Lopdrup and current management.
Is Red Lobster still a Darden restaurant?
The Red Lobster chain is a part of Darden Restaurants’ Olive Garden and LongHorn Steakhouse brands, while also operating at Bahama Breeze, Seasons 52, Yard House, Seasons 52, Red Lobster and any other Darden-connected restaurant within the United States.
Does Red Lobster own Olive Garden?
The company has 175 restaurants, including 160 under the Cheesecake Factory name. Darden Restaurants (DRI) comes to mind. It owns the Olive Garden, Red Lobster and Longhorn Steakhouse chains and some others, with more than 2,000 restaurants in total. Its shares are also up more than 50% over the past five years.
How long has Red Lobster been in business?
In 1970, General Mills acquired Red Lobster as a five-unit company. With new backing, the chain expanded rapidly in the 1980s. Red Lobster entered Canada in the 1980s, in many cases by buying Ponderosa restaurant locations.