Pink Lobster’s new CEO Damola Adamolekun admitted that its $20 countless shrimp providing — which contributed to the restaurant submitting for chapter — wired workers and created “a whole lot of chaos.”
Adamolekun, 35, was tapped to take over the floundering firm in August after the Orlando-based chain instantly shuttered 100 areas and filed for Chapter 11 safety.
The “countless shrimp” promotion first launched in 2004 and initially simply lasted one week however a sea of mayhem occurred after the corporate made it a everlasting merchandise on the menu in Might 2023. Leaders underestimated how fashionable it could be and the corporate misplaced an estimated $20 million that 12 months.
“You stress out the kitchen. You stress out the servers. You stress out the host,” Adamolekun informed CNN. “Folks can’t get a desk. It creates a whole lot of chaos operationally.”
The Orlando-based firm filed for chapter safety in Might 2024.
Then-CEO Jonathan Tibus blamed a earlier CEO, Paul Kenny, for making the countless shrimp promotion everlasting for patrons “regardless of important pushback from different members of the corporate’s administration workforce,” in accordance with the chapter submitting.
The submitting added that the chain suffered main shrimp shortages and triggered points with the “firm’s regular provide chain and demand planning processes.”
In August, a US chapter choose authorized the corporate’s reorganization plan so it may exit Chapter 11 chapter safety and promote to a lender group led by asset supervisor Fortress.
Pink Lobster had 650 areas earlier than the countless shrimp promotion triggered the biggest shareholder, Thai Union, to put in writing off $530 million within the fourth quarter of 2023. In the course of the chapter course of, greater than 50 areas had been even auctioning tools as a part of the liquidation.
Regardless of the hefty cash points, Pink Lobster nonetheless saved its three-level location in Occasions Sq. which prices $2.2 million every year to lease.
Now, solely 545 areas stay within the US.
Adamolekun, beforehand PF Chang’s CEO, hopes to have clean crusing forward with a long-term funding plan that features a dedication of greater than $60 million in new funding.
“Pink Lobster has an incredible future, and I can’t wait to get began on our plan with the corporate’s greater than 30,000 workforce members throughout the USA and Canada,” Adamolekun stated in September.
Pink Lobster has had 5 CEOs since 2021 and in its 56-year historical past, there have been a number of possession adjustments together with being offered to Common Mills, Darden Eating places and a non-public fairness agency in 2014.
Adamolekun stated that countless shrimp could return to the menu later provided that it doesn’t trigger the identical issues.
“I by no means wish to say by no means, however actually not the best way that it was carried out,” he stated. “We received’t have it in a approach that’s dropping cash in that trend and isn’t managed.”
