U.S. restaurant chain Red Lobster is reportedly laying off around 200 restaurant-level employees, even as foot traffic has picked up for the chain over the past quarter.
The “targeted” cuts, designed to streamline operations and set up the Orlando, Florida, U.S.A.-based seafood restaurant chain for long-term growth, represent less than 1 percent of its workforce, the company said, per Restaurant Business.
“Red Lobster remains committed to making thoughtful, strategic decisions that position our company for long-term success and stability,” the chain, which operates around 500 restaurants, said. “These changes were made carefully to minimize disruption and reflect our focus on building a stronger, more agile business.”
Many of the workers let go were managers, according to Restaurant Business reporting.
The move comes soon after efforts made by Red Lobster CEO Damola Adamolekun to turn around the company’s lagging sales appeared to have been paying off; customer visits to the chain rose 6.5 percent in October after a 4.8 percent incline in September and a 7.8 percent spike in August, per Placer.ai.
Overall, Americans are visiting popular casual dining chains more often due to their perceived value, Placer.ai Head of Analytical Research R.J. Hottovy told SeafoodSource.
“This trend is benefiting seafood chains such as Long John Silver’s, Bonefish Grill, and Red Lobster, where recent menu and decor enhancements appear to be driving positive year-over-year visit growth,” he said.
Menu changes have included Red Lobster’s Ultimate SpendLESS shrimp promotion, which launched in September; holiday-themed cocktails; and new seafood boil flavors.
“These new options build on the viral success of Red Lobster’s summer seafood boil launch, offering even more ways to customize and enjoy the experience,” Red Lobster said of the latter change.
Red Lobster also announced this summer that it was partnering with restaurant technology provider Olo to launch a first-party catering service by the end of 2025.
“We’re incredibly excited to launch first-party catering for the first time in Red Lobster’s history,” Red Lobster Chief Marketing Officer Nichole Robillard said. “Catering+ will open entirely new revenue opportunities while Sentiment [Olo’s reputation management platform] gives us powerful insights to enhance our guest experience across all locations.”
Source- https://www.seafoodsource.com/news/foodservice-retail/red-lobster-to-lay-off-around-200-employees