Pink Lobster’s new CEO is making an attempt to revive the seafood chain, which has been a staple of the informal eating trade for greater than half a century, with millennial mojo.
“We wish to make the eating places extra enjoyable,” Damola Adamolekun, 35, mentioned. “We wish to make this extra energetic.”
Pink Lobster is popping to millennial management to usher in youthful friends, which the chain wants after closing greater than 100 of its 640 eating places earlier this yr. Visits to Pink Lobster have been down greater than 43% in October in comparison with the identical time final yr, in response to information from Placer.ai, a location analytics firm.
Pink Lobster has since emerged from chapter, ushering in a brand new period for the once-major seafood chain. Fortress Funding Group is kicking in $60 million towards reshaping the model’s worth choices, service and ambiance.
On Monday, Adamolekun, who’s been within the job since late August, introduced a brand-new menu. He is introducing 9 new gadgets — and bringing again previous favorites like hush puppies.
“There must be some equal rejoicing on social media when you convey these again,” Adamolekun mentioned.
He additionally plans to clean up areas by fine-tuning lighting and decor, whereas creating new music playlists. With 40% of his friends over the age of 55, Adamolekun desires his enhancements to attraction to all generations.
“It’s important to strike a stability,” he mentioned.
Pink Lobster’s issues mirror lots of the difficulties plaguing informal restaurant chains.
General visits to full-service eating places have been down 2% within the third quarter of this yr. TGI Fridays just lately closed 50 eating places and filed for Chapter 11 chapter after foot site visitors was down greater than 35% from this time final yr, in response to Placer.ai. Breakfast chain Denny’s is anticipated to shut 150 shops quickly.
Greater meals prices and scarce labor took a toll, in response to R.J. Hottovy, Placer.ai’s head of analytical analysis. As costs crept up at these eating places, that are supposed to offer an reasonably priced evening out for households, shoppers as a substitute opted to remain house or dine at eating places providing worth offers.
“Some manufacturers like Olive Backyard have pushed will increase in visitation tendencies via value-oriented promotions just like the By no means-Ending Pasta Bowl and different menu improvements,” Hottovy mentioned.
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Pink Lobster infamously tried the promotion route in summer season 2023, when it made its trademark $20 countless shrimp meal deal everlasting in a bid to lure inflation-weary clients. However the deal was pricey for Pink Lobster — the corporate misplaced $11 million from that promotion alone, in response to court docket paperwork.
“Once you’re attempting to supply worth, there must be a hook to convey the buyer in, however you possibly can solely give away a lot meals earlier than you cease earning money,” mentioned Jim Salera, a restaurant trade analyst at Stephens.
Adamolekun criticized Thai Union, the worldwide seafood big that turned Pink Lobster’s main shareholder in 2020, for what he referred to as its mismanagement of the corporate and for pushing the everlasting countless shrimp deal, which Adamolekun mentioned pushed the corporate out of business quicker.
“It adjustments the expertise on your core buyer, and I feel you misplaced a whole lot of them,” he mentioned.
Thai Union introduced in January that it could start an entire exit from Pink Lobster. Fortress later appointed Adamolekun, who beforehand ran restaurant chain P.F. Chang’s, to steer Pink Lobster after chapter.
Now, Pink Lobster is attempting to stability preserving its loyal clients whereas attempting to shake its stodgy picture to draw youthful ones. Its new menu nonetheless affords worth, that includes new pastas for round $15 and three variations of shrimp for $20. However Adamolekun mentioned he’s additionally prioritizing the eating expertise, investing in new know-how to measure stock and calculate desk wait instances, to make it extra in tune with millennial expectations.
“Everyone is aware of Pink Lobster,” he mentioned. “However how do you translate consciousness to relevance?”
Will probably be an uphill battle, mentioned Caitlin Daniel, a sociologist who research meals selection at Harvard College. Nostalgia is not at all times sufficient to hold a series like Pink Lobster, she mentioned.
“There’s the query of having the ability to compete with different locations that would offer a extra compelling alternate expertise,” she mentioned.
That is why Adamolekun hopes his adjustments will even give youthful clients the expertise they’re searching for.
“If you wish to have a future, then that you must interact youthful friends,” he mentioned. “If you wish to be right here in 20, 30 years, you want millennials.”
