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

Seafood chain raises price from $20 to $25 in response to unexpected popularity of the deal.

Red Lobster's 'Ultimate Endless Shrimp' promotion, which allows customers to pay a fixed price for unlimited shrimp, has led to an $11 million loss in the third quarter of 2023.
The promotion was intended to boost customer traffic during the slower third and fourth quarters, but the deal was more popular than anticipated, leading to lower profits.
Red Lobster has now increased the price of the promotion from $20 to $25 in response to the unexpected popularity and to mitigate losses.
Despite the financial setback, Red Lobster plans to keep the promotion on the menu due to its popularity and iconic status.
Thai Union Group, Red Lobster's parent company, had expected losses in the second half of the year but the losses were larger than anticipated due to the promotion and a shift in consumer spending.