Red Lobster's Endless Shrimp Promotion Exceeds Expectations

Red Lobster's Endless Shrimp Promotion Exceeds Expectations

Red Lobster's Endless Shrimp Promotion Exceeds Expectations

Red Lobster's parent company, Thai Union, introduced an "Ultimate Endless Shrimp" promotion to drive traffic during slower quarters. For a fixed price of $20, customers could enjoy unlimited shrimp dishes. However, the response was overwhelming, leading to unexpected losses of approximately $11 million in the third quarter of 2023. 

Though the promotion successfully increased restaurant traffic, the high proportion of customers opting for the deal impacted profitability. 

To address this, Red Lobster plans to make adjustments, gradually increasing the price from $20 to $25. 

The company aims to strike a balance between attracting customers and maintaining profitability.

Keywords:

Red Lobster, Thai Union, Endless Shrimp, promotion, losses, profitability, adjustments, price increase.

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