- Red Lobster exited bankruptcy in September with new CEO Damola Adamolekun.
- Adamolekun said the brand is improving its menu, service, and music at Red Lobster restaurants.
- He also described value as “an equation” between price and what you get for the cost.
Red Lobster is charting a course for recovery under the leadership of its new millennial CEO.
Damola Adamolekun, 36, was appointed CEO of Red Lobster in August, becoming the company’s sixth and youngest chief executive after he was brought on to help revitalize the brand following years of declining sales and a bankruptcy filing.
Before joining Red Lobster, Adamolekun served as CEO of P.F. Chang’s and was a partner at Paulson & Co., where he played a key role in acquiring the Asian-American restaurant chain in 2019.
Under Adamolekun’s leadership, Red Lobster emerged from Chapter 11 bankruptcy four months after filing in May 2024.
When the chain exited bankruptcy, Red Lobster was acquired by RL Investor Holdings, which included a plan to invest $60 million into the chain, the Associated Press reported at the time.
“Red Lobster is now a stronger, more resilient company, and today is the start of a new chapter in our history,” Adamolekun said in a statement after the chain exited bankruptcy.
Adamolekun discussed his goals for Red Lobster on a recent appearance on “The Breakfast Club” and shared the three main areas he’s focusing on after exiting bankruptcy.
Updating the restaurant’s menu and refocusing on value
After becoming CEO, Adamolekun revamped the menu, brought back popular items like the chain’s hush puppies, and introduced happy-hour specials at many restaurants nationwide.
He told “The Breakfast Club” that part of his mission as CEO has been to offer new menu items at a more affordable price point as people tighten their spending.
“Value is an equation. Part of it is price. And you can get some things on the menu that are lower price,” new said, mentioning the chain’s new lobster rolls which cost around $20 at some locations.
“At the same time, value is what you get for the price,” he said. “So if you improve what you get, then you improve value.”
“We have Shrimp Your Way for $16.99 for two types of shrimp,” he continued. “There are things you can do that are approachable if you don’t want to do the full lobster for a higher price.”
Improving the service in restaurants
Adamolekun explained the chain’s new “RED Carpet Hospitality” service model, which stands for “recognize,” “engage,” and “delight.”
“When people walk in, you need to recognize them as soon as they walk in. There should be somebody smiling at the post stand to greet them,” he said on “The Breakfast Club.” “You see somebody — within 10 feet of them, you recognize them. Within 4 feet, you speak to them. We call it the 10-4 rule.”
“If we’re not going to be priced as Chipotle, then we need to offer something that Chipotle doesn’t offer,” he said. “And what that is is called service and hospitality.”
Elevating the ambiance of Red Lobster restaurants in an affordable way
In bankruptcy filings, Red Lobster said it operated about 570 restaurants, though it had plans to close around 120 underperforming locations.
Many restaurants are locked in by long leases, and Adamolekun said that while a nationwide remodel of Red Lobster restaurants would be expensive and take a long time, the chain is considering it in the future.
He also said that there are smaller ways of improving the dining-in experience that don’t require as much funding, such as making the restaurant’s music better.
“We fix the things we can fix quickly,” he said. “If you go to a Red Lobster now, you’ll notice the music is better. And you’ll notice there are small things like we put the market prices on the lobster, we put the liners on the tables.”
“There are small things you can do now,” he said, “but comprehensively, there needs to be a remodel. And that’s something that we’ll do in the future.”
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