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For seafood lovers throughout America, your choices for getting that Cheddar Bay Biscuit repair simply acquired a bit slimmer. The struggles maintain mounting for Pink Lobster because the informal eating chain finds itself closing down over 50 restaurant places nationwide.
In my view, there are two teams of individuals: Oliver Gardeners and Pink Lobster-ers. I’ve been to the countless soup and breadstick franchise as soon as about 10 years in the past, and that was one time too many. To be sincere, Olive Backyard may burn down tomorrow and I’d most likely go roast marshmallows over the flames. However Pink Lobster was completely different. It was my household’s go-to location for any kind of big day.
Celebrating a birthday? Pink Lobster.
Anniversary? Pink Lobster.
Commemorating a divorce? Pink. Lobster.
So, it’s with the heaviest of hearts that I write this text.
Is the beloved Pink Lobster franchise closing its doorways for good?
The mass closures, representing about 15% of Pink Lobster’s over 600 spots, had been revealed by means of an public sale itemizing from TAGeX Manufacturers. The liquidation agency is overseeing the sale of all the things from kitchen gear and furnishings right down to these iconic purple cubicles at practically 50 shuttered Pink Lobsters throughout over 20 states.
Whereas a number of places have gone darkish earlier than, this widespread culling of underperforming eating places marks one of many solely instances within the 55-year-old seafood chain’s historical past that so many shops closed their doorways . It’s the most recent indication that Pink Lobster is nearly drowning beneath the burden of current company turmoil, skyrocketing prices, and fairly slightly ill-advised enterprise choices.
You see, Pink Lobster’s present proprietor, Thai Union Group, has been making an attempt to revive the flagging model since buying a stake again in 2020. However their tenure has been nothing in need of a dumpster fireplace, with 4 completely different CEOs cycled by means of in simply three years as they struggled to proper the ship.
Their largest blunder? Making Pink Lobster’s traditionally limited-time “Infinite Shrimp” deal a everlasting menu merchandise. Whereas the purpose was to drive buyer site visitors, the promotion’s reputation fully overwhelmed operations. Seems, Individuals actually, actually love bottomless shrimp – a lot in order that it led to a staggering $11 million working loss in Q3 2023 alone forcing them to lift the pricing.
Thai Union’s funding within the flailing chain has been such a catastrophe that they lastly threw within the towel earlier this yr. The corporate introduced plans to fully divest from Pink Lobster, consuming a whopping $530 million loss whereas citing “sustained business headwinds” just like the pandemic’s impacts, spiking prices and rates of interest as elements.
The chain’s new CEO, restructuring skilled Jonathan Tibus, definitely has his work reduce out for him as chapter rumors proceed swirling. Pink Lobster was reportedly looking for a purchaser final month in hopes of avoiding that destiny, although no savior has emerged but.
Nonetheless, not all is misplaced for the seafood chain’s future. Whereas the closures put a serious dent of their over 700 international places, they’ll nonetheless have nicely over 600 shops remaining to try a turnaround. A purchaser with deep pockets and strong company management may theoretically assist bail Pink Lobster out, and I’m certain thousands and thousands of individuals (together with myself) are crossing their fingers and praying for a miracle.
However any incoming possession might want to get very inventive to win again the quickly shrinking portion of shoppers nonetheless loyal to the comparatively dated chain. The explosive progress of fast-casual, cult chains like Chipotle and Chick-fil-A have been placing the squeeze on all the struggling sector for years now, so Pink Lobster clearly has a tough street forward.
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