Crimson Lobster’s new CEO Damola Adamolekun admits the countless shrimp deal precipitated “chaos”

Crimson Lobster’s new CEO Damola Adamolekun admitted that its $20 countless shrimp providing — which contributed to the restaurant submitting for chapter — stressed workers and created “quite a lot of chaos.”

Adamolekun, 35, was tapped to take over the floundering firm in August after the Orlando-based chain all of a sudden shuttered 100 places 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 Could 2023. Leaders underestimated how well-liked it will be and the corporate misplaced an estimated $20 million that yr.

“You stress out the kitchen. You stress out the servers. You stress out the host,” Adamolekun told CNN. “Folks can’t get a desk. It creates quite a lot of chaos operationally.”

The Orlando-based firm filed for chapter safety in Could 2024.

Then-CEO Jonathan Tibus blamed a earlier CEO, Paul Kenny, for making the countless shrimp promotion everlasting for purchasers “regardless of important pushback from different members of the corporate’s administration crew,” in line with the chapter submitting.

The submitting added that the chain suffered main shrimp shortages and precipitated points with the “firm’s regular provide chain and demand planning processes.”

In August, a US chapter decide accepted the corporate’s reorganization plan so it might exit Chapter 11 chapter safety and promote to a lender group led by asset supervisor Fortress.

Crimson Lobster had 650 places earlier than the countless shrimp promotion precipitated the biggest shareholder, Thai Union, to jot down off $530 million within the fourth quarter of 2023. In the course of the chapter course of, greater than 50 places had been even auctioning tools as a part of the liquidation.

Regardless of the hefty cash points, Crimson Lobster nonetheless stored its three-level location in Instances Sq. which prices $2.2 million every year to hire.

Now, solely 545 locations remain 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.

“Crimson Lobster has an amazing future, and I can not wait to get began on our plan with the corporate’s greater than 30,000 crew members throughout the USA and Canada,” Adamolekun stated in September.

Crimson Lobster has had 5 CEOs since 2021 and in its 56-year historical past, there have been a number of possession modifications together with being bought to Basic Mills, Darden Eating places and a personal fairness agency in 2014. 

Adamolekun stated that countless shrimp might return to the menu later provided that it doesn’t trigger the identical issues.

​​“I by no means need to say by no means, however actually not the best way that it was carried out,” he stated. “We gained’t have it in a approach that’s dropping cash in that vogue and isn’t managed.”