Red Lobster's 'Endless Shrimp' Promotion Leads to $11M Loss

Despite increasing the price to $25, the seafood chain is expected to lose nearly $20 million this year.

Red Lobster's 'Ultimate Endless Shrimp' promotion, which offered unlimited shrimp for $20, led to an $11 million operating loss in the third quarter of 2023.
The promotion was meant to attract more customers during the summer and fall, but the proportion of customers choosing the deal was much higher than expected.
Despite increasing the price of the promotion to $25, Red Lobster is still expected to lose nearly $20 million this year.
The promotion has led to a 2% increase in customer traffic compared to the last quarter, and a 4% increase compared to the previous year.
Red Lobster plans to continue the promotion, but will be more careful about the entry and price points.