Red Lobster closes 36 more locations as store count drops
Red Lobster is getting smaller and it’s not just a temporary seafood shortage this time. The seafood chain has closed 36 more restaurants so far this year, shrinking its U.S. footprint to 484 locations as it continues cleaning up the mess left behind by its 2024 bankruptcy.
That’s a 7% drop from the 520 locations Red Lobster had at the end of 2025, according to Technomic data. Compared with the end of 2023, the chain is now operating about 25% fewer restaurants.
Some familiar Red Lobsters are disappearing
The closures have not exactly been random. Last month, Red Lobster shut down its Columbus, Georgia, restaurant after 55 years in business. In June, its Times Square location closed after 23 years, ending the run of another high-profile restaurant.
More recently, local reports have pointed to three closures in Alabama, two in Illinois, and one in California.
The closures are in line with Red Lobster CEO Damola Adamolekun’s revelation earlier this year that the company needed to reduce its footprint. The chain reiterated on Tuesday that closing underperforming restaurants remains part of its long-term strategy.
Red Lobster got a little too big
There was a time when Red Lobster had far more locations open. The Orlando-based chain peaked at 679 restaurants in 2019, making today's 484-location footprint roughly 29% smaller than its peak.
Red Lobster acknowledged in its bankruptcy filings that it had expanded too aggressively, contributing to its sales and traffic problems. Then there were the leases.
In 2014, then-owner Golden Gate Capital sold much of Red Lobster's real estate and leased the properties back. That left the chain dealing with expensive rent costs. In May 2024, it filed for bankruptcy and has been pruning locations ever since.
Make the remaining restaurants better
Closing restaurants is not the only thing on Red Lobster's menu. The company has been trying to get customers back through promotions, including a revamped version of Endless Shrimp, the all-you-can-eat deal that became infamous after contributing to the financial problems that preceded its bankruptcy. It has also introduced Red Carpet Hospitality, an effort focused on improving service, while remodeling restaurants with a fresher, more contemporary look.
Whether all of that is working is still unclear. But Red Lobster said earlier this year that it was tracking ahead of its revenue and earnings forecasts. The strategy is basically fewer restaurants, but better ones. Red Lobster said right-sizing its footprint gives it more room to invest in restaurant refreshes and improve the guest experience at locations it believes can support the brand's future.
Source: NRN
