Red Lobsters Now Closing Across Texas And In The US

You are not losing your mind, there are tons of major chain and franchise restaurant establishments closing all across Texas, and they do appear to be picking up momentum as Red Lobster has now put up the white flag while weighing the options of filing for bankruptcy. The company has recently named a new executive leader that has vast experience, and is considered an expert in restructuring.

Read More: Popular Texas Restaurant Closes Almost 1/3 Of Their Stores

It really is starting to feel like no eatery, no matter the size, is immune from the recent financial strain that has more or less befell the entire food service industry. Red Lobster's largest toe stub since the onset of Covid-19 was their "All You Can Eat Shrimp" promotion that is believe to have caused losses in the neighborhood of $11 million.

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Red Lobsters Now Closing Across Texas And In The US

Right now, the list of closures in Texas include San Antonio, Longview, and Lake Jackson. In total, about 50 stores across the United States are permanently closing while several additional locations are experiencing at least temporary closures.

This isn't the first time an all you can eat promotion cost the company dearly. About 20 years ago, back in 2003, they attempted an all you can eat crab legs offer, and that cost them approximately $3.3 million in losses in only about 7 weeks.

Adjusted for inflation, the losses probably puts it closer to the $11 million they just lost with their latest idea. As sears has been transitioning to an online only retailer, I wonder if Red Lobster will be able to stay afloat from their Cheddar Bay Biscuits sold at grocery stores.