Red Lobster abruptly closes dozens of stores

I wouldn't spend real money there, but I do have one of those American Express gift cards I've been trying to use up lately.

Here's a list I found of all the closed ones:

https://www.usatoday.com/story/money/food/2024/05/14/red-lobster-closed-restaurant-locations-list/73683118007/

The one nearest to me is still open. Maybe I should go there and tell them I heard the news and that I'm sorry. Of course, I wouldn't spend real money there, but I do have one of those American Express gift cards I've been trying to use up lately.

Abruptly? What do you mean? They filed for bankruptcy like a month+ ago

Employees came up to the doors and found them locked with notes.

There was no notice to the employees or anyone around. Employees came up to the doors and found them locked with notes. That's abrupt. Simply because a company files for bankruptcy (which they actually have not, so your assertion is incorrect), doesn't mean the company is going to close. Chapter 11 is not "Just give up and drop all debt and close down." It's restructuring to pay back the majority, if not all, of their debt, at a different pace.

While closures can be a part of this, they are not automatic.

Not to mention, again, they did not file for bankruptcy.

I've seen multiple restaurants do this. When I first heard it I thought "this must surely be illegal" but apparently it's just the "common practice"

Yes. They do it so people won't quit or stop caring. To get the most out of the employee they severely underpay before they fold.

That justifies not giving more than a day's notice for stores closing (it's still dickish an exploitative, but at least it makes some sense), but it's still no excuse to just lock the store and not tell employees anything until they show up and read a sign. Saying "we're closing, this is your last shift" and the end of all shifts the day before doesn't leave any opportunity to sabotage the business, nor does sending out a text overnight.

I don't think in most cases they know. Usually it is the district manager that finds out first thing in the morning "Oh, by the way, we are closing 10 of your restaurants effective immediately. Do the needful.", which by the way is still 3 management levels above the employee who needs to know that they shouldn't bother driving in to start their shift in an hour.

Still, there's no reason they can't start that cascade soon enough to save employees the commute. For that matter, you don't even really need that chain of command because corporate could easily just automate sending out a mass text to all affected employees once there was no more opportunity for sabotage. That would likely leave them scrambling to contact their managers as needed until they went far enough up the chain to get an authoritative answer, but at least they'd save a commute.

I don't doubt that front-line managers are just as out of the loop as front-line staff are, but somebody knew this was coming at least a few days in advance. To do nothing to communicate it in a way that limits the inconvenience for front-line employees is just plain inconsiderate.

Red Lobster is not closing because their prices are too high. Its because they were too low and they lost millions from Endless Shrimp.

The lobster kids meal costs over $60 with taxes. This is beyond expensive.
No wonder they are closing their stores due to a lack of business and profits.

The lobster kids meal costs over $60 with taxes.

Lobster is terrible

Get outta here with that. Lobster roll is elite tier food

You can eat what you want, especially when it's overpriced, was originally considered peasant food, and doesn't have any taste without drowning it in butter. Not to mention how it's almost always overcooked, rubbery, and even more tasteless.

You can eat what you want, especially when it's overpriced, was originally considered peasant food, and doesn't have any taste without drowning it in butter. Not to mention how it's almost always overcooked, rubbery, and even more tasteless.

I will not get out of here with that, or any thing else for that matter, simply because you desire.

All in all, eat what you want, but why would you let your kids eat something so terrible, and stupidly expensive...

How can that user have such a political sig on this board lmao

If you can't afford lobster just say so. I don't need 3 paragraphs

If you think lobster is tasteless, I encourage you to stop eating processed foods with 5000 grams of sodium.

Interesting deflection without being able to actually address what I said about its texture and flavor. Makes sense for someone telling others to leave over personal taste.

You're really taking this seriously aren't you lmao

I actually am not. Please continue though.

Please refrain from posting on this board. We thank you in advance.

Red Lobster is not closing because their prices are too high. Its because they were too low and they lost millions from Endless Shrimp.

I've seen multiple restaurants do this. When I first heard it I thought "this must surely be illegal" but apparently it's just the "common practice"

No, they're closing because they got bought by a vulture capitalist firm who bought them with a LBO, gutted them, wrecked their value, and then sold the company to a group who, even if they were capable, had no hope of turning it around. Instead, the new group acted as the supplier, selling products at a mark-up.

I think it's just how bankruptcy filings work. There's a chance even the managers weren't involved, it was the DMs or corporate chaining them up.