Red Lobster Forced to Close 48 Stores Due to "Endless Shrimp" Promotion and Financial Strain

Red Lobster bankruptcy is Red Lobster's endless shrimp deal causing Red Lobster to go bankrupt let's get into it let's watch this video I've had 24 shrimps and I ate 51 shrimp I ate 50 shrimps has the Red Lobster restaurant chain eaten itself into bankruptcy by offering its famous endless shrimp deal Red Lobster's endless shrimp is kind of a big deal social media users turn the all you can eat shrimp offer into a Food Channel challeng let's go this guy is chowing down plate after plate got orders 30 and 31 that's 31 plates filled with shrimp including the shrimp Linguini Alfredo and coconut shrimp definitely be getting more of these these ladies are also taking the challenge my goal is to eat 65 shrimps tonight 25 shrimps tonight 45 shrimp that's a lot of shrimp now without warning Red Lobster has announced it's closing 99 Restaurants across the USA all because the popular chain of apparently bit off more than it could chew Last Summer the company announced the endless shrimp deal as a permanent fixture on the menu but way more customers took advantage of the deal than expected triggering an $1 million loss when I ordered shrimp at this New York City location today I found the endless shrimp deal was not even being offered turns out the all you can eat shrimp meal is only available on Mondays now so it looks like I'm going to have to pay full price for all of this all you can eat is a wonderful thing in theory but then you've got to be able to deliver on that and evidently there's an all SS of challenges to eat more than you can eat they're now having to go back and raise their prices to try to create a little more profitability while they're also closing down locations it's a perfect storm definitely my favorite there you have it endless shrimp you got all kinds of you've got inflation you've got all kinds of stuff going on it's not just the endless shrimp deal here's article I found Red Lobster sudden closing Sparks magga backlash what could that possibly Trump supporters blame be this is Newsweek let's take a quick peek prot Trump Americans are blaming Red Lobster sudden Mass closures had 48 Red Lobsters just boom got closed down people like ah in reality these closures based on Red Red Lobster's Finance numbers are not shocking they're prob Red Lobster's probably headed to bankruptcy they used the endless shrimp to try and get people back in the door a lot of these restaurants are having a tough time not only with inflation but throughout the pandemic when you're closed and you're generating no Revenue that's kind of an issue so this is part of build back better and um yeah this is what it looks like closing 48 restaurants prot Trump Americans blaming Red Lobster sudden Mass closures on President Joe Biden's Economic Policy I thought everything was good I thought the I thought I thought you and I were doing better than we even knew do that's that's what sleppy Joe told us anyway right this is after the popular seafood chain announced nearly 50 store 50 store shutdowns earlier this week Red Lobster said 48 restaurants would be saying goodbye to guests for good including five locations in California and Florida I have not had the Red Lobster all you can eat special nor would I probably go there on a Monday to get it eating a eating 50 shrimp just isn't really all that important to me I like shrimp but Red Lobster is I don't think there's any near me I think the nearest one is weapon lywood or something half an hour away and I'm just not going to go there for to sit there ah it's great I'm goingon to have 45 more of these bad boys just shovel them down walk out with a big stomach ache I ate 65 shrimp I did The Tick-Tock challenge no it's not doing that another four are disappearing in Maryland to Colorado each with many Inflation impacts restaurants of the restaurant equipment up for auction to the highest bidder the Northeast also got a spare share of Red Lobsters taken away with the chain reporting around a dozen closures in New York and New Jersey popular seafood chain reportedly was considering bankruptcy last month according to Bloomberg and CNBC and has faced significant shakeups in its executive team over the past three years lot of businesses struggling to stay open struggling to keep up with inflation struggling with costs like having minimum wages risen and I didn't know this going to have this impact and you're fired right I mean we've just got that left and right that's what happens when you're in a a period of what you're not growing and you've got inflationary pressures makes it a little tricky for businesses to stay in business upon hearing the news many Trump supporters have said that their closures reflect a failing Economic Policy from Biden who is set to face Trump in the upcoming presidential election how about Trump's uh how about the debate Trump's going to have with Biden it sounds like that is a go I picked uh Jake Tapper and somebody else from CNN Bush I think it was to uh to moderate the the debate I'll believe that when I see it right because I don't know that they can hop sleepy Joe up with enough of whatever he's taken to make him get through a presidential election debate with about him just yeah clearly clearly showing his obvious signs of dementia right I remember when my parents took up to Red Lobster when I was a kid I was considered a fan it was considered a fancy restaurant for special occasions Vince langman a self-described Maga xcon deplorable wrote on social media it looks like the end is near thanks to Biden economics Biden and nomics all right yes and no know for for Red Endless shrimp fiasco Lobster this has been an ongoing decline hasn't it as you've seen with tons of tons of retail you know you've got all these businesses that were based in malls that are that have been failing that have been slowly failing well restaurant chains have are not exempt and they've faced inflationary measures and just kind of the the way that business goes Red Lobster whether the you know the endless shrimp was their downfall no that's not it it that doesn't have to do with the core structure of red Rob of Red Lobster I almost said Red Robin others were quick to point out that the UN unemployment ramifications of restaurants like Red Lobster falling under well yeah under Joe Biden our economy is so good that suddenly 50 Red Lobster restaurants are closing Nationwide how many more will be unemployed said a prot trump ex user another ex user also in favor of a second Trump presidency shared we went to Red Lobster for our promise date dinner Biden is destroying our country and its Staples is Red Lobster endless shrimp is that a staple according to these bolks it is right Red Lobster's Financial boast Red Lobster dwindling profit has been occurring across the span of several years While most restaurants experienced a mass hit to revenue during the coronavirus pandemic Red Lobster also dealt with a blow to its finances in June of last year after offering its ultimate endless shrimp and I've I've seen this in multiple stories they're pointing to this as you know one of the instigators of their downfall they've only had it in place for like a year right the deal which offered unlimited shrimp for just $20 was in part responsible for an operating loss of 11 million in the third quarter apparently that promotion was a hit but it also meant people outstripped the ability for the store to make a profit with it the ability for the restaurant to make a profit with it it's a perfect storm of bad economic forces at play that make red out Rising operational costs Lobster's current state a hard one to get out of that could have longlasting effects on its restaurants said a financial literacy instructor at University of Tennessee the restaurant chain is getting hit on both sides of the coin with Rising costs not just for the food customers but the increased labor cost cost for the employees as well combined that with an endless shrimp promotion that the company underestimated in terms of both cost and popularity people loved it right I had heard about it it wasn't hey you want to go red l no not really Ian we get the endless shrimp oh okay you got me there um it's not that huge of a shrimp fan but yeah if you are sounds like quite a deal you have a situation where a sizable number of their locations are no longer economically sustainable that's what we've been seeing right lot of the discussion that's been happening in recent times has been you know with restaurants they're offering you know a special deal and you know they're trying to get you to come back in as a consumer but the special deal is just of such small proportions small sizes that you're like is this what I'm coming in for a lot of the mentions in the comments that I see people talking about the cost of a Big Mac you know and the Big Mac goes up to XYZ dollars at my local McDonald's I'm out I'm out people talking about Starbucks hey I can make really wrong bad coffee at home I I don't need to go to Starbucks to get that people are struggling inflation you know doesn't matter what President Biden tells us folks are having a tough time meeting the obligations of their bills and one place that they can really save on that is going out and I think you're seeing these numbers reflected in that you know not only are grocery prices through the absolute roof right I mean just you go to the grocery store I don't Price increase necessity wherever you shop doesn't matter you look at stuff that you bought you know a year or two years ago and you go holy cow what happened I mean you pick up like a nice fillet of salmon and you go w wow home equity loan need to tap that baby to get that right it's nuts it's nuts since these Financial Wes Red Lobster has reportedly been in talks of trying to find a buyer or filing for bankruptcy in an effort to restructure its debts while Bean said voters can make the argument that Biden's Administration is not doing enough to curb inflation causing companies like Red Lobster to suffer the consequences there are still specific decisions the Red Lobster has made that led to its specific financial situation it's hard to blame the president's economic policy on an endless shrimp promo run a mck it's that's true that's true but it's been you know it's such a focal point oh maybe they're going under because people are eating too many shrimp that's not it they would just whack that program which they effectively have well let's make them let's make them come in on the one day they're probably not going to come in to eat that's Monday right many businesses like Red Lobster have had difficulty adapting to a changing landscape in the restaurant game or just playing the restaurant game right and some wrong turns could ultimately lead the company down a path of endless Financial wo andless shrimp Financial wos fast food casual dining has also played a role stealing a significant chunk of their business with the growth of chains like Chipotle and Chick-fil-A you know I have never I shouldn't say I've never eaten Chick-fil-A I've never had somebody's had it delivered and I've had it I have never eaten Chick-fil-A in the restaurant just yeah we've got one here in bellw it just doesn't doesn't do anything for me right it's like are you eating there it's the best ever like no I haven't no no I don't want to go there Chipotle I ate with Chipotle I ate at Chipotle so so many times when my kids Economic policy blamed were in high school where you guys want to go to eat Chipotle we were you know for years there we were getting both my sons a Chipotle gift card for like Christmas or their birthdays right herey you go Chipotle oh thanks Dad because they loved it so much I ate so many Chipotle you know those burrito bowls I ate so many of those that I I no longer enjoy eating at Chipotle just absolute overthe top ate too much so inflation would be present regardless of whomever was in office yes but the amount of money that got sent through the economy yeah those decisions are what we are we are feeling now right that money is still floating through FL floating through the economy and yeah that that transitory inflation um we're still feeling it aren't we how many years later they told us it would just be it would only be in the market place for you know just a scooch it's transitory yeah we'll get back to those numbers interest rates go up yeah right whether it's Trump Biden or Watson the shutting down of American Business was the lead cause for imbalances with supply and demand during the pandemic the shock has taken years to come down and will have deep rooted repercussions for our economy beginning with higher interest rates for longer that's what we're experiencing what was um what was inflation under Trump yeah let me know in the comments recently recently Biden tried to say that he inherited 9% inflation when he took office um sleepy Joe no no no you no you didn't inflation was well under 2% when you came into office maybe maybe do some homework and get back to me on that because um I'm I am pretty sure I am pretty sure that if there is a debate that will be one of the things that Donald Trump will bring up right off the bat so you may want to prepare yourself Declining restaurant relevance for you know talking about reality which is that when you took office inflation was under 2% not near not overnight so maybe maybe check into that real quick and you know just get your facts straight because um you're going to be pressed on those facts so when was the last time you thought about Red Lobster or went there yeah last time I went there I had a gift card for a hundred bucks and it would have been 2010 14 years ago 2012 something like that yeah for most it's probably been years since the seafood chain was truly relevant yeah Red Lobster struggles and recently announced Mass closures of 50 locations nationwide are sadly not that surprising when you look under the hood and that's kind of what I'm saying you can have this whole ah this is Joe Biden's America welcome to build back better yeah that is part of it that's that that is definitely you know some of it but these individual businesses are also if you're reasonable you're going to take a look at that and go all right so you got a multi-prong effect on this this business on this company and that's really what's going on Ryan called The Once popular seafood a took textbook case study and prolonged mismanagement and strategic blunders uhoh sounds like Target right target with its little you remember that little pouch they had for the children who weren't sure if they were a boy or a girl you can either way with this bad boy just put it on you got your a little twinkie there you just put it in the pouch nobody knows yeah here you go Junior I know you're only six but yeah everybody's making decisions about their sexuality earlier and earlier now yeah Target Target this year for pride month they are scaling back their offerings of said merchandise like that because they took a hammering as they should right as they should for doing crap like that even even before the pandemic the restaurant Strategic business mistakes had experienced a long history of sales declines that's what's been going on the shrimp they're just trying to get something going management scrambling around all right we gotta justify our salary what do you guys got what do you got endless shrimp ah ding ding ding you're up let's make it go and then people would just go ham with the Tik Tock challenge of how many shrimp can I eat at Red Lobster were government policies the best for restaurants maybe not Ryan said let's be honest Hest Red Lobster's mediocre product and Antiquated business model were the bigger [Music] culprits yeah it all works together right and you can't say a business that's struggling isn't isn't struggling because of inflation in the way it is that that is a given Red Lobster has always been that restaurant where people have said oh let's go to Red Lobster it's so fancy well is it really F well it's it's a nice herb restaurant but it's not nicer to the point where you're like okay that's where we're going doesn't really have that pull anymore does it I mean it doesn't for me it doesn't for folks that I know but we also don't have a lot of Red Lobsters you know in the in the Seattle area it's just not really a thing but you go to other parts of the country and it kind of you know it was noted as that upper echelon of restaurant you know eating out experience within within a lot of communities so would kind of set that standard but I think that standard has fallen over the years and people are like Red Lobster I mean okay uh it's it's a more upper end Seafood chain is right is and that is is no longer in demand the way that once was and so all of these factors are playing into into this this whole thing well I got to cut down 48 so they are they're they're stopping the bleeding that's what they're doing they are stopping the bleeding all right got a little triage going on with breed Lobster and when management starts talking about are there any buyers around for our restaurant company because things are not going that well we need to get out of some of this debt so if somebody wants to buy us or maybe we do a little chapter 7 chapter 11 whatever it might be to get some of this debt off of our you know flick this debt off of our shoulders that we've had to take on because our business model no longer really works seeing these company emerge from bankruptcy and often times you're like all right that's pretty much the exact same company um yeah with their balance sheet a little bit better but the long-term struggle is what's it going to take for Red Lobster to get people back into their restaurant and spending money on items that actually make them a profit H yeah that's the tricky part right that's the tricky part maybe a miraculous White Knight will come along who really that white knight really really enjoys that endless shrimp special I don't know no it seems like Red Lobster is on its way out so if you need to experience that Monday nights that's your best bet to get the Red Lobster and Bliss shrimp before they probably go out of business yep all right it for me on this one thanks so much for being here i' love to have you subscribe if you haven't already hit that like button hit that notification Bell we release two videos a day Monday through Friday one on Saturday one on Sunday you can catch me at the premieres every morning 9:00 Pacific Standard Time Monday through Friday I'm there on the live chat if you want to say hi if you want to meet me online that's the place to do it thanks again for being here and I'll catch up with you in the next one bye for now