Red Lobster

Red Lobster Hospitality LLC
Private
Industry Restaurant
Genre Casual dining
Founded March 22, 1968 (1968-03-22)
Lakeland, Florida, U.S.
Founders Bill Darden
Charley Woodsby
Headquarters 450 S. Orange Avenue
Orlando, Florida, U.S.
Number of locations
 705 (2013)
Area served
 United States
Kuwait
Mexico
Saudi Arabia
Canada
Japan
United Arab Emirates
Qatar
Brazil
Malaysia
Ecuador[1]
Key people
 Kim Lopdrup (CEO)
Salli Setta (President)
Products Seafood, Chicken, Steaks, Pasta
Owner Golden Gate Capital
Parent Darden Restaurants (1995–2014)
Website www.RedLobster.com
Footnotes / references
[2][3]

Red Lobster Hospitality LLC is an American casual dining restaurant chain headquartered in Orlando, Florida. The company has operations in Canada, Malaysia, Saudi Arabia, the United Arab Emirates, Qatar, Mexico, and Japan, in addition to the United States. As of February 24, 2013, the company had 705 locations worldwide. Golden Gate Capital has been Red Lobster's parent company since it was acquired from Darden Restaurants on July 28, 2014.[4]

On August 6, 2014, Red Lobster announced their new headquarters location in CNL Center City Commons in Orlando.[5] On March 6, 2015, Red Lobster officially opened the Restaurant Support Center.[6]

History

Formation and growth

Red Lobster was founded in March 22, 1968, by entrepreneurs Bill Darden and Charley Woodsby. Originally billed as a "Harbor for Seafood Lovers", the first restaurant in Lakeland, Florida, was followed by several others throughout the southeast. In 1970, General Mills acquired Red Lobster as a five-unit company. With new backing, the chain expanded rapidly in the 1980s.

Red Lobster entered Canada in the 1980s, in many cases by buying Ponderosa restaurant locations. The company generally maintains between 25 and 30 locations in Canada, the bulk in larger urban centres in Ontario (across southern Ontario plus one in Sudbury in northern Ontario) with a smaller number in larger urban centres in all three Prairie provinces. It exited the Quebec market in September 1997 due to financial losses, and never attempted to enter the market in British Columbia.[7]

On March 29, 1994, Bill Darden died after an extended illness at the age of 75.[8]

In 1995, Red Lobster (along with Olive Garden and other sister chains), became part of Darden Restaurants, Inc. During that time, General Mills decided to release Darden into an independent, publicly traded corporation.[3]

New prototype and sale

The new prototype design as seen at the Baton Rouge, Louisiana location

In 2009, Red Lobster debuted its new "Bar Harbor" restaurant prototype modeled after coastal New England.[9] The new exterior features include shingle and stone towers, signal flags, and Adirondack-style benches. The interior updates include dark wood paneling, warm-toned fabrics, soft lighting, and nautical decor and artwork.[10]

On December 19, 2013, Darden Restaurants announced plans to sell or spin-off the Red Lobster brand, citing pressure from stock investors.[11] This was in direct response to Darden going overbudget on a new digital platform.[12] On May 12, 2014, Darden announced that as part of the spinoff of Red Lobster, it was converting the co-located Red Lobster and Olive Garden locations into standalone Olive Garden locations.[13] On May 16, 2014, Darden announced it would be selling the Red Lobster seafood restaurant chain to Golden Gate Capital for US$2.1 billion.[14] Darden announced the completion of the sale of Red Lobster on July 28, 2014.[15]

On August 6, 2014, Red Lobster announced their new headquarters location in CNL Center City Commons in Orlando.[5] On March 6, 2015, Red Lobster officially opened the Restaurant Support Center.[6]

Promotions

Red Lobster has offered an endless snow crab leg promotion twice in its history. However, in 2003, the promotion resulted in parent company Darden Restaurants taking a $3 million charge to third-quarter earnings, resulting in president Edna Morris' departure from the company. The ill-timed promotion was launched amid high wholesale crab leg prices. The chain also underestimated how many times a customer would order more. Further complicating matters at the restaurant level was the amount of time a customer spent table-side in the restaurant cracking crab legs. This resulted in increased wait times in the lobby and overall diminished customer capacity per hour.[16]

In February 2016, American singer Beyoncé referenced Red Lobster in her single Formation". After unexpectedly releasing the single and performing it during the Super Bowl 50 halftime show, Red Lobster reported a 33% sales increase due to the reference.[17]

The brand specializes in seafood, including lobster, shrimp, fish, crab, and mollusks. It also serves chicken, steak, and pasta.

Lobster bisque controversy

In February 2016, Red Lobster was exposed for using less expensive langostino, along with Maine lobster, into their lobster bisque recipe.[18]

Locations

As of February 24, 2013, the company had 705 locations worldwide. As of 2016, it had locations in the United States, Kuwait, Mexico, Saudi Arabia, Canada, Japan, United Arab Emirates, Qatar, Brazil, Malaysia, and Ecuador.[1]

See also

References

  1. 1 2 "Our International Locations". Red Lobster Hospitality LLC. 2016. Archived from the original on 13 June 2016. Retrieved 13 June 2016.
  2. ↑ "Darden 2011 Annual Report" (PDF). Darden Restaurants, Inc. Retrieved April 12, 2012.
  3. 1 2 Darden Restaurants, Inc. (May 29, 2011). "FY 2011 10-K". U.S. Securities and Exchange Commission. Retrieved April 11, 2012.
  4. ↑ "Darden Completes Sale Of Red Lobster To Golden Gate Capital". MarketWatch. July 28, 2014. Retrieved August 26, 2014.
  5. 1 2 "Red Lobster announces location of new headquarters". Orlando Sentinel. August 6, 2014. Retrieved September 26, 2014.
  6. 1 2 "Red Lobster debuts new downtown HQ". Orlando Sentinel. March 6, 2015. Retrieved February 11, 2016.
  7. ↑ "Dur coup pour la restauration au Québec et en Ontario". Radio-Canada Nouvelles. September 13, 1997. Retrieved May 18, 2012. (In French.)
  8. ↑ Christine Shenot (March 30, 1994). "Founder Of Red Lobster, William B. Darden, Dies". Orlando Sentinel. Retrieved May 17, 2014.
  9. ↑ "Bar Harbor - Overview". Darden Concepts, Inc. Retrieved April 11, 2012.
  10. ↑ Perla Trevizo (December 25, 2009). "Red Lobsters cook up fresher paven look". timesfreepress.com. Retrieved April 11, 2012.
  11. ↑ "Darden Looking to Spin off or Sell Red Lobster". Moneynews. Retrieved 23 December 2013. |first1= missing |last1= in Authors list (help)
  12. ↑ "Darden Restaurants reducing 85 corporate positions; COO Drew Madsen leaving". Retrieved 2013-12-28. |first1= missing |last1= in Authors list (help)
  13. ↑ http://www.fool.com/investing/general/2014/05/12/darden-restaurants-shedding-franken-chain-concept.aspx
  14. ↑ Rupp, Lindsey (16 May 2014). "Darden to Sell Red Lobster for $2.1 Billion". Bloomberg. Retrieved 2014-07-29.
  15. ↑ Choi, Candace (28 July 2014). "Orlando's Darden completes completes $2.1 billion sale of Red Lobster". News 13. Bright House Networks.
  16. ↑ Benita D. Newton (September 26, 2003). "All-you-"can-eat was too much". St. Petersburg Times Online. Retrieved April 11, 2012.
  17. ↑ "Red Lobster: Sales surged after Beyonce's "Formation"".
  18. ↑ "What You Need To Know Before You Eat Lobster This Valentine's Day". 2016-02-10. Retrieved 2016-07-23.
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