The seafood chain is reportedly closing at least 48 locations across the country, with a restaurant liquidation company auctioning off kitchen equipment from the affected restaurants.
Red Lobster, the popular seafood chain, is reportedly facing a wave of closures, with dozens of its restaurants set to be shuttered in the coming months. According to industry sources, the company plans to close at least 48 locations across the country, a move that has raised concerns about the future of the iconic brand.
The closures come amid reports of declining sales and profitability for Red Lobster. The company has been struggling in recent years to compete with other seafood chains, as well as with the growing popularity of home meal delivery services. Additionally, the COVID-19 pandemic has taken a significant toll on the restaurant industry, and Red Lobster has not been immune to its effects.
The closing restaurants are located in various states across the country, including California, Florida, Texas, and New York. The affected locations include both company-owned and franchise-owned restaurants. The auction of kitchen equipment from these restaurants will be conducted by a restaurant liquidation company, which specializes in selling used and surplus equipment from the foodservice industry.
The closure of so many Red Lobster restaurants will result in the loss of hundreds of jobs across the country. The company has not yet publicly announced the closures, but it is expected to make an official statement in the coming weeks.
The Red Lobster closures are a sign of the challenges facing the restaurant industry, which has been hit hard by the COVID-19 pandemic and the rising cost of food and labor. Other restaurant chains have also announced closures in recent months, including California Pizza Kitchen and Sbarro.
The closure of Red Lobster restaurants is also a blow to the communities where they are located. Red Lobster has been a popular destination for families and tourists for decades, and its closure will leave a void in these communities.
It is unclear what the future holds for Red Lobster. The company may be able to turn things around and avoid further closures, but it will need to make some significant changes to its business model.
