RED Lobster has confirmed a major change that will go into effect immediately as it aims to boost labor productivity.
The Florida-headquartered seafood restaurant chain said it’s evolving to officially mark the end of a 14-year era.
Red Lobster has announced the appointment of Horace Dawson as its new boss.
It's a big promotion for Dawson, who previously served as the firm's executive vice president and general counsel, leading legal affairs, communications, risk management, and government relations.
His immediate predecessor was Kelli Valade, who abruptly quit the high profile role last April - just eight months after she took the job.
The departing Valade said that she had "truly loved my time here at Red Lobster.”
Restaurant analyst John Gordon told the Orlando Sentinel at that time that Valade’s decision to quit was a “very, very, very bad” sign for the company.
“No CEO anywhere wants to be on board a company only eight months," he added.
Dawson's appointment was described in a business insight by Restaurant Dive as happening after a lengthy leadership shuffle sparked when longtime CEO Kim Lopdrup retired after leading the brand for 14 years.
BOOZE PLANS
It added: "Despite these leadership shifts, owner Thai Union Group — which bought the chain in 2020 — has been working to improve the chain.
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"The company plans to offer additional food and beverage items, like alcoholic beverages, and refresh its restaurants to provide a more polished appeal.
"The company made its 'ultimate endless shrimp,' which was a summer limited time offer, available all the time to help grow traffic.
"It also hosted its first endless lobster event in March in a New York Times Square restaurant."
PRICE RISES
Red Lobster is trying to boost profits by increasing prices and decreasing labor costs, Restaurant Dive added.
Dawson said of his appointment: “This is an important time for our brand.
"We are continuing to evolve our menu and guest experience to give our guests more of what they want every time they visit one of our restaurants."
Red Lobster described him as a 30-year restaurant industry veteran.
The firm has been approached for further comment.
The seafood chain announced in January that it was fighting to keep stores open.
Despite closing eight outlets, the owner posted drops in net profit and sales for three straight quarters, including the second quarter of 2023.
However, the Red Lobster frozen line has helped the restaurant turn around along with the hugely popular Lobsterfest.
CLOSURES
A statement from Red Lobster sent to Restaurant Business in January stated that a number of locations had to close as they are no longer viable.
The first location to shutter as part of the eight closures was in Naples, Florida, which closed its doors for good in November.
Following this, three locations closed in December in Ohio, Texas, and New Jersey, followed by other branches.
A spokesperson for Red Lobster recently told The U.S. Sun: "We regularly review our restaurant portfolios as part of the normal course of business.
"As a result, we made the difficult decision to close locations that were no longer right for Red Lobster.
"As you mention, in some locations, the decision was reached when we could not reach an amendable lease agreement with the landlord.
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"Management teams and team members were given the chance to relocate to other Red Lobster restaurants whenever possible.
"In closing these locations, we hope to redeploy and add resources to other locations where we can continue our growth, whether it’s by developing our people in a new way or offering more innovative food choices to our guests."
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