Red Lobster is losing money claw over fist. Bloomberg reports the seafood chain is heading for bankruptcy. The reasons are many, including the high operating costs and expensive promotions such as Endless Shrimp.
Seafood restaurant chain Red Lobster is mulling a Chapter 11 bankruptcy filing as it looks to restructure its debt, according to people with knowledge of the matter.
Red Lobster has been getting advice from law firm King & Spalding, said the people, who asked not to be identified discussing a private matter. The dining chain is considering a possible Chapter 11 filing to shed some long-term contracts and renegotiate a swath of leases, the people said.
A lot of "Millennials are killing x" stories really boil down to "Millennials are killing premium mediocre." Premium mediocre is a sign of the Boomer Loop of consumption. It started in the 1960s, peaked in the 1990s, and is inescapable because they spend too much money to be ignored, even if the ship is obviously sinking, and their preferences are firmly (angrily! furiously!) set in stone. A grim market coefficient where the total numbers decline but individual consumption increases, creating a deathmatch over fewer but fatter wallets. Now, sign up for my new substack Demolition Man: Prophecy and Praxis.
Previously: Twenty years later, Red Lobster still shudders at the thought of its all-you-can-eat snow crab legs disaster
