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Red Lobster was a popular place to eat in South Florida for years. Then it almost sank. But the seafood chain has undergone a resurgence after its sale and the leadership of a new CEO.
All-you-can-eat crab and shrimp almost took down Red Lobster. The restaurant went from fantastic feast to bankruptcy court.
Now, the chain is back thanks to a charismatic new leader, CEO and former investment banker Damola Adamolekun.
Red Lobster was founded in 1968 in Lakeland, Florida, and is now based in Orlando. The company has 42 restaurants throughout Florida and is owned by Fortress Investment Group, an investment management company.
Adamolekun, a Nigerian immigrant, previously worked in finance at Goldman Sachs and as the CEO of P.F. Chang’s restaurant chain.
Now 36, Adamolekun became chief executive officer at Red Lobster in August 2024 while the company was in Chapter 11 from May 2024 to September 2024. Adamolekun led the company out of bankruptcy and back into a popular spot for dining and on social media.
In 2003, Red Lobster’s “Endless Crab” promotion cost the company $3 million in seven weeks. Similar poor financial decisions like the “Endless Shrimp” promotion cost the company $11 million, according to reports, and almost kept Red Lobster under water.
In a business conference presentation and in a Miami Herald interview Tuesday at Florida International University’s Biscayne Bay campus in North Miami, about two miles from a Red Lobster restaurant, Adamolekun shared tips for succeeding in business at the Teach To Fish Summit.
Here are seven of them:
Create a clear plan that all employees can understand
Adamolekun said that turning around Red Lobster meant creating a plan that every employee could buy into and understand. That plan included adding seven new items to the menu, including bacon-wrapped scallops, keeping old favorites like popcorn shrimp, and pricing margaritas at $5 instead of $20.
“Explain a plan of how we’re going to improve the business and get through it,” he said. “Get people to buy in to believe that it’s possible, and that you need to celebrate the wins along the way.”
Improve your sales and business will improve
Adamolekun attributes Red Lobster’s turnaround to a renewed interest from customers driven by more popular items.
“The most powerful thing you can do for any business is drive top line revenue,” he told the Miami Herald. “And that’s by driving more customers to come visit you by delivering something better.”
Understand what connects people to each other
Adamolekun grew up around different people in Zimbabwe and the Netherlands and said that learning what makes people similar despite their differences matters.
“I lived amongst very different people,” he said. “But you also quickly learn what makes people similar.”
Fail fast and move forward
When Adamolekun took over P.F. Chang’s in 2020, business was going well until COVID led to restaurant shutdowns. He had to quickly adapted by better supporting delivery and to-go ordering. Being able to assess failure and move forward is a key trait he believes professionals should have.
“When leadership is in crisis, it’s faster,” he said. “Things need to be decided more quickly.”
Build a company culture where people can speak up
Having a culture where employees at all levels can speak up and share ideas helps companies succeed, Adamolekun said.
“You need to build a culture where people feel comfortable speaking up and contributing,” he said. “I try to build a culture [where] there’s no favorites. We’re not discussing people. We’re discussing ideas. The best ideas win.”
Understand the risks and rewards of scaling your business
Adamolekun recommended that business owners interested in scaling their businesses evaluate the pros and cons before doing it.
“When you’re a small business, you’re probably really good at one thing, or you have a niche of customers that come to you and you found something that works,” he said. “Scaling means expanding that, but doing it in an intelligent way. If you grow the right way, then it’s natural and it makes sense.”
Catering to local communities can go a long way
Adamolekun expressed support for Florida’s 42 Red Lobster restaurants and mentioned community support as a testament for their success.
“The stores here do well so it’s a credit to the communities here that have embraced Red lobster for a long time,” he said. “The leadership here is excellent. Every restaurant is a reflection of its community. Our restaurants here reflect the South Florida community and the love is authentic.”
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Michael Butler
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