Red Lobster Soon To Be Up For Sale Or SpinOff
Chances are that you may not be able to have your beloved shrimp scampi from the famous Red Lobster menu in the future! Darden has announced that the restaurant will be either up for sale or spinoff, owing to low customer turnout. The company which also operates other brands nationwide has decided to halt the opening of any new restaurant for now.
That’s quite a sad ending for Red Lobster which took pride in serving great seafood to its patrons. However, the freshest and high-quality food had slowly become less affordable for customers due to the economic downturn. People have restricted eating out or have started opting for other places which cost less.
According to Clarence Otis, Darden Chairman and CEO, the restaurant industry has been impacted significantly “with relatively low levels of consumer demand in each of the past several years for restaurants generally, and for casual dining in particular.” This measure of shedding a low-growth brand will help the company to focus on other brands which are doing better. The company hopes to strengthen its stock value with these measures. However, the final plans about spinoff are yet to be approved by the company’s board. Red Lobster currently has 705 restaurants in United States and Canada.
“The actions we’re taking are clearly exciting steps forward for Darden, and we believe these actions enhance our ability to create compelling value for our shareholders,” said Otis.
Worried that you are going to miss all the exotic seafood from Red Lobster? Well, there’s still time before anything can happen. So why not just visit the restaurant sometime soon and eat that shrimp scampi to your heart’s content?
Other blogs you may like to read:
Image Credit – wikipedia