Endless shrimp once led Red Lobster to bankruptcy, here's why it's back
What to know about the new promotion after it previously cost the company.
Red Lobster is ushering in a new era of endless shrimp, the deal that previously put the company in hot water and prompted financial restructuring, adding the fan-favorite promo back to restaurant menus with five fresh dishes for a limited time.
"I wanted you to be the first to hear it from us, your favorite shrimp promotion over the past 20 years is back," CEO Damola Adamolekun said first on "Good Morning America" in a video announcement on Monday. "So come soon, come hungry, and start enjoying your endless today."
The popular dining experience, which the company said has been highly requested by customers, officially hits menus nationwide on Monday with one new recipe and four returning favorites.
"This is about putting our guests first and bringing back something they truly love," Damola said in a statement.
The new "Marry Me Shrimp," inspired by viral online recipes, is Red Lobster's take on the creamy tomato sauced dish featuring shrimp topped with a garlic and herb crumble.
The returning options include Shrimp Linguini Alfredo, Walt's Favorite Shrimp, Garlic Shrimp Scampi and Parrot Isle Coconut Shrimp.
The promotion was so popular when it first became a menu staple in 2023 that it cost Red Lobster $11 million dollars in operational losses in just over three months, which prompted the company to enter Chapter 11 bankruptcy in 2024.
After Red Lobster successfully charted the Chapter 11 waters, it sold to a new firm and ushered in a new CEO who has worked to turn around the seafood restaurant chain.
Last July, he told "Good Morning America" that the company didn't have plans to bring back endless shrimp.
"We listen intently to customer comments and try to react really quickly to deliver people what they want," Adamolekun said at the time.
Despite seeing improving sales, the company has still struggled to turn a profit.
But now, pointing to an influx of enthusiasm on social media, Red Lobster will reverse course and offer all you can eat shrimp for $25.
"There's a lot of evidence that these value offerings, whether they're limited time in nature or everyday value that's always on the menu, have been really successful in bringing customers in," senior restaurant analyst at Bank of America, Sara Senatore, told "GMA." "There is some risk that you bring in a lot of traffic and that people only come in for that item."
With the price of dining out up nearly 4% compared to the same time last year, according to the Bureau of Labor Statistics, Red Lobster isn't the only restaurant trying to win back customers with new promotions.
Olive Garden reintroduced its Buy One, Take One deal that offers customers two pasta dishes for $14.99, one to enjoy while dining in and another to take home. Chili's has its "3 for Me" deal that starts at $11 and includes a beverage, starter and main dish, and Applebee's offers two entrees and an appetizer for $25.
"We are seeing consumers, they still want to go out to eat, but they go out less frequently,"Senatore said. "And when they do go out -- what we're seeing is that they are choosing to spend their hard-earned money in places that offer them great value and also great experience."