*Red Lobster is still shrinking. Two years after entering Chapter 11 bankruptcy, the seafood chain now operates about 540 restaurants nationwide, down from over 700 before the filing.
According to Inc., the bankruptcy stemmed largely from the “Ultimate Endless Shrimp” promotion, which drove losses of roughly 19 million dollars and forced the closure of more than 100 locations in 2024. Despite that history, Red Lobster brought the promotion back this year after testing it successfully in April.
Several 2026 closures stood out for their history and location. In May, the company shut down its longest-running restaurant, a Tallahassee, Florida location that had operated continuously for 56 years. Red Lobster called it “a special place in Red Lobster’s history.”
Three more restaurants closed their doors this year: one in Chambersburg, Pennsylvania, and two in the Kansas City area, located in Overland Park, Kansas, and Independence, Missouri.
Scroll to continue reading
Manhattan lost its only Red Lobster in June, when the chain’s Times Square location closed after 23 years. The company pointed to construction that had disrupted foot traffic, along with plans to convert the building into residential apartments.
The closures reflect a chain still working through the aftermath of its bankruptcy, even as it leans on familiar promotions to draw customers back.
“As part of our normal course of business, Red Lobster continuously evaluates individual restaurant performance and lease terms and may, from time to time, choose to close select restaurants,” the restaurant said previously in a statement. “Those closures reflected specific decisions tied to the unique operating conditions at those restaurants. We remain committed to making thoughtful decisions that position Red Lobster for long-term success, stability and growth.”
MORE NEWS ON EURWEB.COM: Red Lobster’s Endless Shrimp Is Back, But the Hype Has Faded
We Publish Breaking News 24/7. Don’t Miss Out! Sign up for our Free daily newsletter HERE.
