Fnalysis.
💥 Unlimited shrimp, unlimited losses
A $20 'unlimited shrimp' promotion drove the entire Red Lobster chain into bankruptcy, according to a lawsuit
A creditors' trust sued Thai Union, the former majority shareholder, alleging it knew as early as 2023 that the "Endless Shrimp" promotion was guaranteed to lose money: the more customers ordered shrimp at a fixed price, the more money Red Lobster lost buying it from Thai Union itself at inflated rates. The chain filed for bankruptcy in 2024 with $295 million in debt.
Source: CNBC →The buffet devoured its own chain.
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