Popular Restaurant Chain May Close Over 100 More Restaurants

The problems keep piling up for a popular restaurant chain that may close even more locations.

Nearly 100 Red Lobster restaurants abruptly closed across the country, 10 in New York days before the company filed for bankruptcy with $300 million in debt.

COVID & Shrimp

In 2022, Red Lobster lost $33 million as fewer people were eating out and labor costs skyrocketed. 16 restaurants had to be closed to try and make up for the loss.

In 2023, a good idea turned into even more losses for the chain. The $20 all-you-can-eat shrimp deal that debuted in the summer ended up costing Red Lobster over $11 million in one quarter.

READ MORE: Another Popular Chain with 90 New York Restaurant Will Close Dozens in 2024

Problems with High Rent

Now the problem is leases. Bankruptcy documents filed this week show over 200 rejected leases from locations that will keep losing money. That's nearly half of the chains 570 restaurants.

READ MORE: Family Owned Restaurant Closing in New York After More Than 90 Years

Restaurant Business claims 135 more restaurants are at risk of closing, including in Times Square, where rent more than doubled. The lease on the corner of 7th Avenue and 41st Street in the Big Apple increased to $2.2 million, according to the New York Post.

There's no word on the other 130+ locations that may be in trouble.

The company is continuing to negotiate leases and rent with landlords across the country.

READ MORE: 3 Generation Family Business in New York Out of Business After Nearly 80 Years

10 Red Lobster Restaurants Closed in New York

10 Red Lobster restaurants closed in New York in May. Luckily, the New Hartford location remains open and we'll cross our fingers it'll stay that way.

READ MORE: Another Business Moves Away From Destiny USA

4010 Maple Road - Amherst
3701 McKinley Parkway - Buffalo
1 Miron Lane - Kingston
295 E. Fairmount Avenue - Lakewood
2255 South Road - Poughkeepsie
655 Jefferson Road - Rochester
999 Central Park Avenue - Scarsdale
2220 Nesconset Highway - Stony Brook
20831 State Route 3 - Watertown, NY
7540 Transit Road - Williamsville

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