Lewiston’s Red Lobster temporarily closed

Red Lobster’s Lewiston location is temporarily closed along with dozens of others across the country at a time when the national restaurant chain is facing financial challenges, which have included the overwhelming popularity of an all-you-can eat shrimp promotion.

A sign on the door of the eatery at 2115 Thain Grade in Lewiston offered no explanation.

“This location is closed,” according to the sign. “We look forward to serving you at another Red Lobster location in the future.”

The sign directed UPS to pick up at the back door.

Red Lobster’s website listed Lewiston as temporarily closed. Red Lobster has two other Idaho locations, in Coeur d’Alene and Boise, that remain open, along with its Spokane restaurant.

Only one Red Lobster in Washington is on the list that are temporarily closed, Silverdale, according to Newscentermaine.com.

More than 80 Red Lobsters in at least 27 states were listed as temporarily closed on the restaurant’s website, according to Newscentermaine.com.

Red Lobster is reportedly considering filing for bankruptcy protection, according to the television network CNN.

“In 2020, Thai Union, a longtime supplier to Red Lobster, took an undisclosed financial stake in the chain, becoming a key shareholder,” according to CNN. “Since then, Red Lobster has cycled through four CEOs and an all-you-can eat shrimp deal last year that slowed down table service and cut into Thai Union’s profitability.”

In January, Thai Union Group issued a news release stating that it would be pursuing “an exit of its minority investment in Red Lobster.”

Thai Union Group and Red Lobster had been conducting a review to identify areas for operational and financial improvement, according to the January news release.

“The combination of COVID-19 pandemic, sustained industry headwinds, higher interest rates and rising material and labor costs have impacted Red Lobster, resulting in prolonged negative financial contributions to Thai Union and its shareholders,” said Thai Union CEO Thiraphong Chansiri in the news release.

“After detailed analysis, we have determined that Red Lobster’s ongoing financial requirements no longer align with our capital allocation priorities and therefore are pursuing an exit of our minority investment,” Chansiri said.

Thai Union, according to the news release, is regarded as a leading world seafood producer with brands such as Chicken of the Sea.

More than one media outlet has detailed what happened when Red Lobster expanded its “Ultimate Endless Shrimp” promotion last summer.

Red Lobster offered “the previously seasonal deal (which had been around for about 20 years) ‘all day, every day’ instead of just on Mondays,” according to a Nov. 29 story in the New York Times.

The promotion did increase the number of customers at Red Lobsters, but the proportion of them selecting the unlimited shrimp deal as opposed to other menu items was “much higher” than expected, according to the New York Times.

Thai Union saw endless shrimp as a way to “sell off the mountains of shrimp it was catching,” according to a May 3 CNN story with the headline “What Went Wrong at Red Lobster.”

“It caused a cascade of problems as customers sat at tables for long stretches of time, eating course after course of shrimp,” CNN reported in the story quoting a former executive.

“This slowed down service and created longer wait times — exactly what the chain didn’t need as people packed in the door for the chance to grab infinite fistfuls of shrimp,” according to CNN.

The issues Red Lobster is facing now come after being part of the American landscape for more than 50 years.

It was founded in 1968 when Bill Darden opened its first location in Lakeland, Fla. The chain was acquired by General Mills in 1970 and spun off into Darden Restaurants in 1995, according to CNN.

Darden Restaurants initially included Red Lobster and Olive Garden, a chain General Mills started in 1982, according to CNN.

Darden sold Red Lobster in 2014 to Golden Gate Capital, a private equity firm, according to CNN. Thai Union gained its stake in Red Lobster in 2016 and Golden Gate Capital sold its stake in Red Lobster in 2020, according to a 2020 news release from Thai Union.

Lewiston’s Red Lobster opened in 1996 on a prominent lot on one of the city’s busiest streets.

Its employees are trying to figure out what to do next after losing their jobs through no fault of their own, said Bill Jollymore, owner of Jollymore’s: A Dining Experience.

Saying Red Lobster had great food and service, Jollymore said he’s got openings for kitchen and wait staff.

He will be at the restaurant at 9 a.m. today at 1516 Main St., to interview job applicants, and is open to hiring people on the spot, Jollymore said.

“It’s the right thing to do,” he said.

Williams may be contacted at ewilliam@lmtribune.com or (208) 848-2261.