Is Red Lobster Still The Largest Seafood Chain Restaurant In The World?

Seafood deals and irresistible cheesy biscuits have made Red Lobster a nationally loved chain. For years now, the restaurant has been one of the leading seafood chains in America. In the United States alone, Red Lobster made $2.3 billion in 2021, more than double the amount made by the chain in second place, Captain D's Seafood Kitchen (via Statista).

However, recent years have not been kind to Red Lobster. The former champion of seafood restaurants worldwide lost its crown in 2024. According to CNN, mismanagement and inflation led the chain to file for bankruptcy and close doors at many locations. Several factors, from customer satisfaction to the pandemic's effects on the restaurant industry, have contributed to Red Lobster's fall from grace. Financial decisions played a major factor as well, with some citing the endless shrimp deal as part of why the company filed for bankruptcy. And while Red Lobster's future isn't so bright, there are many other seafood chains worth eating at in the U.S.

It took more than just one issue to bring Red Lobster down from its pedestal as the largest seafood chain restaurant in the world. The first signs of trouble came in the form of customer decline. In 2019, Red Lobster noted a 30% drop in annual customer count, per the company's bankruptcy court filing.

The pandemic hurt the chain further throughout 2020 and 2021. Although sales did eventually bounce back with a 25% increase from 2021 to 2023, the chain's earnings saw major losses of up to 60% through the first half of 2024. Combined with a variety of debts and interest payments that the company owed, there was barely enough money to break even from the losses suffered during the pandemic.

The company struggled to come up with a strategy that would help combat these issues, along with the others, including restaurants greatly underperforming, customers complaining about poor seafood quality compared to other chain restaurants, and location closures, all while facing increased competition. The final nail in the coffin was the $20 Ultimate Endless Shrimp deal, which was made a permanent part of the restaurant's menu in 2023 as a last effort to attract more customers. Unfortunately, it cost the company more money than it could afford to lose.