Author: Brett Colon – August 31, 2025
Topic: Red Lobster and Business Transformation
Committee: Finance
Everyone loves a good underdog story. Whether it’s Rocky Balboa’s rise to the top through grit and sheer will, or the USA’s triumphant upset over the Soviet Union in the 1980 Winter Olympic ice hockey semifinals, there’s something to be said about defying the odds in getting to the mountaintop. While on the surface these stories shine with majesty and glory, the true depth of every triumph lies beyond what first meets the eye.
This isn’t specific to just sports, our surrounding world is filled with trailblazers trying to build something bigger than themselves. The hustler mindset extends beyond the spotlight. It spills into kitchens, boardrooms, and even seafood chains fighting to stay afloat. This is a story of how one chain is doing things differently–one lobster at a time.
In June 2023, Red Lobster decided to do something they thought would propel them into the upper echelons of casual dining. Originally set out to be a limited-time offer, team executives decided to release the “Ultimate Endless Shrimp” promotion, which allowed customers to order and eat unlimited shrimp dishes for the stout price of $20. While the offer was initially released to attract customers and boost sales, the company quickly realized how much they had underestimated their target market. Many embraced the offer as a challenge, with one woman claiming that she consumed 108 pieces of seafood over the span of a four-hour meal.
What was created to be a fun offering to get customers through the door soon grew into something more detrimental than top executives could have ever expected. In the third quarter of 2023, Red Lobster announced an $11 million loss and the closure of over 129 locations, before filing for Chapter 11 bankruptcy just a couple of months later. The goliath that was once the pinnacle of casual seafood dining looked as if it was quickly fading into nothing more than a memory.
Had it turned into just that, I would have felt a small piece of me die with the chain. Whether it’s the rugged sailor-themed interior or the famous Cheddar Bay biscuits (they’re unbelievable), Red Lobster owns a special place in my heart. Going to Red Lobster with my grandfather is always a joy-filled dining experience. When I first read about this story, I was shocked to find that the chain’s vanquishing was primarily attributed to too much shrimp of all things. No matter what caused its looming downfall, Red Lobster was going to need a game plan not just to stay alive, but to survive in the ever-growing competitive casual dining scene.
Changes at the helm
In August 2024, 34-year-old Damola Adamolekun was appointed the new CEO of Red Lobster. Becoming the youngest CEO in the company’s history, the first-generation Nigerian-American was thrust into turmoil with the job of saving the chain.–small task, right?. However, what seemed like an impossible task was nothing scary for Adamolekun, who previously served as the CEO of P.F. Changs, where he spearheaded their to-go dining model in the midst of COVID. His efforts increased the company’s sales by over 31.7% in 2021 and generated profits of over $1 billion annually. If Red Lobster was going to mount the monumental comeback needed, someone as young and tenacious as Adamolekun was the key piece needed to make it happen.
In his first couple of months at the position, Adamolekun made waves in the industry. His strategy? Getting his team fired up and laser-focused on improving. In an interview with CBS News, the CEO spoke about his intentions with the company, saying that “the most important thing I [he] did at the very beginning, was getting the team galvanized around a mission and a strategy and getting them focused on turning the page from what had been very difficult.” He later claims that one change he needed to implement was to “show a path forward”, which involved having “a clear strategy, investing in the guests investing in the team”.
One previous criticism of Red Lobster management was their operational inefficiencies and inability to adapt as a brand. The casual dining scene has become increasingly competitive over the last decade, and companies that fail to adapt continue to perish. One sector that Adamolekun has prioritized in his first year is investing in the brand’s identity and focusing on long-term growth. In June 2025, the company launched its biggest event of the year, Crabfest, highlighted by new seafood boils. The Southern-style dish of crawfish and vegetables in buttery broth was an instant hit, drawing new customers and building excitement for the company’s future. With its resurrection and emergence to popularity, the chain expects to be profitable by the end of 2026, and earnings to grow 43% by the end of 2027.
What we can learn
One area where Red Lobster has recently thrived is connecting with their customers in the new age of dining. Having amassed over 140,000 followers on TikTok, they have continued to invest in their brand identity and who they are. Adamolekun appears frequently on the page, thanking everyone for their support and even taking suggestions about what the chain could be doing differently and what has been done well. A recent example of this was the release of different spice levels to their seafood boils, and the implementation was made directly by Adamolekun after listening to feedback from the restaurant’s fans. From this, we can glean that loyal consumers enjoy being heard. A large part of building around a brand, especially in the food business, is through outreach to your primary consumers. An area where Red Lobster was once falling behind is now emerging as a leader in this space.
At just 34, Adamolekun is emerging as a symbol of the power of youth leadership. Red Lobster becomes yet another company with a millennial CEO, joining the likes of companies such as Instacart and Kickstarter. Many advocates of young leadership claim that these leaders have a greater connection to the average consumer, and are oftentimes “hungrier” to drive innovation and foster success.
So, what does the future hold for Red Lobster? While the future remains uncertain, the company is etching its way onto the path of success, after narrowly missing the edge of solvency just one year ago. One thing is for sure, though – tonight, I will head on down to the chain restaurant for some biscuits and seafood. And who knows, while I enjoy my meal, I’ll raise my glass of Coca-Cola to the ceiling and make a toast – to second chances, grit, and most of all, buttery greatness.