“Red Lobster”, a renowned seafood restaurant in the United States, has found itself in a challenging situation, drawing attention to its rise and fall in the public eye. After facing closures and going through the bankruptcy process, a young “diner” is now taking over this struggling seafood restaurant. At just 35 years old.
Reports from The Wall Street Journal indicate that for the past three months, a diner has been visiting Red Lobster restaurants across the country, evaluating the quality of Maine lobster tails and the comfort of the New England-style interior decor. He found that while many people love the brand, there are areas that need improvement.
Now, Damola Adamolekun, a private equity executive, has set aside his identity as a seafood detective and stepped up to the front, ready to take action.
Adamolekun was chosen by the Red Lobster creditors to become the CEO of the restaurant chain.
In a report by CNN on October 4th, Adamolekun, during an interview with CNN last Friday, said, “There is definitely a hole to climb out of, and that will be the toughest part.” During the interview, he was enjoying lobster tails, snow crab legs, garlic shrimp, crispy lobster, and cheddar biscuits, among other delicacies.
“The period of bankruptcy was very painful, and the closures affected a lot of people,” he said.
A report from Huari mentioned that Adamolekun was born in Nigeria to a neurologist and a pharmacist. He grew up in Zimbabwe and the Netherlands, moving to Springfield, Illinois at the age of nine. He won $10,000 in a high school speech competition and used that money at the age of 16 to establish his first stock investment portfolio.
Before taking the helm at Red Lobster, he ran the pan-Asian chain P.F. Chang’s. The 56-year-old Red Lobster seafood chain has incurred losses of tens of millions of dollars, with multiple changes in CEO, the closure of dozens of restaurants, and filing for bankruptcy in May.
At the end of August, when Adamolekun stood in front of a room full of employees at the Red Lobster headquarters in Orlando, Florida, he stated that he would help lead the company with a new strategy focusing on improving food, operations, restaurants, marketing, and the staff environment. He mentioned that he and the company would work together to develop this plan in the coming months and stick to it.
CNN reported that Adamolekun aims to lead Red Lobster through a transformation as it was once America’s “first truly successful national casual dining chain.” He marveled at the “cultural impact” of Red Lobster. Celebrities like comedian Chris Rock have worked there before they became famous. Beyoncé’s popular 2016 song “Formation” even mentions her dining experience at Red Lobster with her loved one.
After Red Lobster filed for bankruptcy, American rapper Flavor Flav ordered the entire menu in an attempt to save the company. “Mr. Flav did a lot,” Adamolekun told CNN. “We are very grateful to him.”
Currently, one of the new owners of Red Lobster is the creditor Fortress Investment Group. Fortress initially committed to injecting $60 million to revive Red Lobster.
According to CNN, Adamolekun’s business plan does not call for massive reforms but rather “progressive change.” He mentioned that Red Lobster will not be closing restaurants but will focus on enhancing table service, streamlining the menu to simplify kitchen operations, and beautifying the restaurants.
Red Lobster needs to retain its baby boomer clientele, referred to as “Quality Traditionalists,” while also attracting a new generation of diners.
Adamolekun noted that keeping dishes like sole on the menu is because it’s popular with older customers, but he aims to improve the ambiance to appeal to younger customers who are more loyal to casual dining competitors like Olive Garden.
Following this marketing strategy, sizzling hot stone plates on tables when grilling dishes and cakes sparking on birthdays will be features in Red Lobster restaurants. This is a similar strategy he employed during his time as the CEO of P.F. Chang’s, which he called “tableside theater.”
However, some analysts suggest that Adamolekun needs bolder strategies to develop Red Lobster.
Reports from Huari mentioned that upon joining P.F. Chang’s, Adamolekun initially served as the Chief Strategy Officer, helping devise a plan to turn the chain’s losses into profits. After the outbreak of the pandemic in 2020, he became the CEO.
Before the pandemic hit, he had implemented digital ordering and takeout for the chain, which brought significant returns once restaurants were forced to close during the pandemic.
Under Adamolekun’s guidance, what does the future hold for Red Lobster? Everyone will have to wait and see.