Red Lobster’s CEO shares how he saved the chain from bankruptcy
Red Lobster’s 36-year-old CEO highlighted three moves that sparked the seafood chain’s resurgence on the Breakfast Club podcast in March 2025.
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Red Lobster closed about 130 stores during its 2024 bankruptcy, and may need to close even more to continue its successful post-bankruptcy comeback.
Chief Executive Officer Damola Adamolekun told the Wall Street Journal that the chain is evaluating its current restaurant list and store leases, and more closings are possible. “There are a lot of silver linings, but we inherited a very damaged brand and we still have work to do to repair everything,” Adamolekun, who took over as the chain’s chief executive in August 2024, said in an interview at the store.
The magazine, citing people familiar with discussions with Red Lobster, reported that Red Lobster would like to eliminate dozens of underperforming restaurants if possible.
Red Lobster closed 129 stores in a few months following its bankruptcy filing in May 2024. The bankruptcy stemmed from multiple problems, including the chain’s high debt, a change in management, and a loss of customers following its controversial all-you-can-eat shrimp offering, court documents revealed. According to Reuters, the Endless Shrimp promotion accounted for $11 million of the company’s $76 million net loss in 2023.
Red Lobster is one of several large casual dining chains to file for bankruptcy in the past two years, including Hooters and TGI Fridays.
Red Lobster’s post-bankruptcy menu doesn’t mean ‘endless shrimp’
Red Lobster emerged from bankruptcy in September 2024 with a restructuring plan and more than $60 million in financing from RL Investor Holdings, which Fortress Investment Group formed with co-investors TCW Private Credit and another credit company Blue Torch to acquire the chain. A few weeks ago, Fortress appointed former CEO of PF Chang’s, Adamolekun, as Red Lobster’s new CEO.
Since taking over, Adamolekun has made some simple initial changes at Red Lobster, such as changing the music and installing table liners, and plans to renovate some stores. It also removed the endless shrimp menu item to reduce stress in restaurant kitchens.
Adamolekun told the Journal that the chain’s sales are up about 10% from last year and that young people are seeking out Red Lobster.
Red Lobster, which lists about 480 stores in 44 states on its website, saw an increase in restaurant traffic over the summer and fall, with an 18% increase in July 2025, according to Placer.ai, which tracks millions of devices and uses machine learning to estimate store visits. The company’s research shows that while foot traffic declined in December and January, so too did foot traffic across the full-service dining category.
Red Lobster did not respond to a request for comment on this story.
Adamolekun did not say how many closures are expected. He told the Journal that some of Red Lobster’s struggling stores would have already closed if not for the chain’s complicated lease situation. Many underperforming restaurant leases are tied to better performing restaurants.
In other cost-cutting measures, Red Lobster will The company reduced its workforce by about 1%, bringing the loss to fewer than 200 restaurant-level employees, according to Restaurant Business.. The company has laid off about 10% of its workforce in recent months, the paper said.
According to the magazine, Red Lobster is also trying to renegotiate deals with its suppliers as tariffs are driving up the price of imported seafood.
Contributors: Gabe Hauari and Jonathan Limehouse.
Mike Snyder is a national trends news reporter for USA TODAY. You can follow him on Threads, Bluesky, and X, and email him at: mike snyder & @mikegsnider.bsky.social & @mikesnider & msnider@usatoday.com.
