Tuesday night at the Red Lobster in Times Square, chief executive Damola Adamolekun had the lobster pappardelle for at least his 10th time.
We apologize, but this video has failed to load. Try refreshing your browser, or tap here to see other videos from our team.
Red Lobster’s 35-year-old CEO wants to make seafood cool for younger generation.
The 35-Year-Old CEO’s Challenge
The 35-year-old CEO has been sampling the new dish at outposts throughout the United States to check its quality and consistency. He is determined to revamp the brand and make it appealing to a younger audience.
A Brand in Need of Revitalization
Red Lobster exited bankruptcy after a roughly three-month reorganization and preceding turnaround effort that saw some customers defect. The company had sought court protection after struggling with falling sales and high rent costs.
"There’s been so much turmoil around the business that some people just opted out," Adamolekun said. "You lost some customers in all the noise, so we want to invite these people back to the restaurant and give them a reason to come back."
Menu Revamp and Sales Increase
Some of his early efforts are making an impact. Sales ticked up this past weekend after company launched its refreshed menu earlier this month, Adamolekun said.
"Everyone knows Red Lobster," Adamolekun said, citing internal research indicating 98 per cent of Americans recognized the brand. "What we’re focused on now is translating that awareness into relevance, and into visits."
Investment and Competition
The chain received US$70 million from investors led by Fortress Investment Group LLC to help fund the turnaround. The hedge fund controls Red Lobster after providing a 2019 rescue loan and then buying it out of bankruptcy.
He’s also going up against fast-casual eateries such as Chipotle and Cava that have eroded the market share of casual dining chains like Red Lobster and its competitors.
The Seafood Niche
But to Adamolekun, the restaurant’s seafood niche gives it an edge. After all, there’s no quick-service alternative that offers shrimp scampi and lobster pappardelle.
"It’s easier for some brands to battle" the fast-casual competition, he said. "I’d much rather be us."
The Road Ahead
Reviving sales will be key to carrying out those and other improvements. Many of the company’s roughly 545 locations have a backlog of costly improvements that need to be addressed, such as kitchen technology, new roofs and HVAC upgrades.
"It’s not just about menus," Adamolekun said. "It’s about getting back to basics – quality food, clean restaurants, and friendly service."
Conclusion
Red Lobster’s 35-year-old CEO is on a mission to revamp the brand and make it appealing to a younger audience. With a refreshed menu and investment from investors, the road ahead looks promising for this seafood giant.
Recommended from Editorial:
- Canadian court approves Red Lobster restructuring plan
- What’s going on at Red Lobster and is endless shrimp to blame?
- Red Lobster chain goes bankrupt after unlimited shrimp deal
