Red Lobster CEO Plans Historic Restaurant Comeback

Red Lobster is on the path to recovery under the leadership of CEO Damola Adamolekun. At just 36 years old, Adamolekun is not new to turning around struggling restaurant chains. His previous experience includes revitalizing P.F. Chang’s during challenging times.

Positive Outlook for Red Lobster

As Red Lobster emerges from bankruptcy, the company anticipates positive net income by fiscal 2026. In fact, adjusted EBITDA is projected to grow by an impressive 43% from fiscal 2025 to 2027. Adamolekun believes this could mark “the greatest comeback in the history of the restaurant industry.”

Strategic Changes Ahead

• Adamolekun has specific strategies to boost Red Lobster’s performance.
• He plans to avoid past mistakes, such as the infamous endless-shrimp promotion that contributed to financial woes.

Instead, he emphasizes careful financial practices. Adamolekun noted, “I know how to do math,” referring to the unsustainable operating losses incurred during previous promotions.

Modernizing Red Lobster

To innovate, Adamolekun is implementing a $60 million plan focused on operational improvements and aesthetic upgrades across restaurant locations. Key initiatives include:

• Renovating decor with new lighting and music.
• Fixing HVAC systems and replacing damaged furniture.
• Ensuring the sustainability of restaurant locations.

During its bankruptcy, the chain closed numerous outlets. Currently, about 500 locations are in operation, and Adamolekun aims to strengthen this foundation by emphasizing affordability. “We should be the best deal for the best lobster because we do have the best product,” he affirmed.

Menu Optimization

Adopting a similar strategy to other chains, Red Lobster is refining its menu. The focus is on eliminating underperforming items to increase operational efficiency. Recent promotions include:

• Lobsterfest with $20 lobster rolls.
• Unlimited Cheddar Bay Biscuits.
• A newly introduced happy hour menu.

These changes reflect Adamolekun’s ambitious approach. He stated, “I’m not afraid of failure. I don’t mind setting really high goals.”

A Vision for the Future

The restoration of Red Lobster’s reputation and performance marks a significant chapter in its history. With a clear focus on operational efficiency and customer experience, Adamolekun aims to redefine the brand’s future.