Red Lobster Closing Locations: South Carolina’s Myrtle Beach Among Them
An unfortunate announcement for seafood fans in South Carolina: The popular dining chain, Red Lobster, has suddenly shuttered the doors on 87 of its restaurants temporarily, in 27 different states. The closures took place in the week of May 13. As well as the temporary shutdowns, 48 of these locations have entered pilings into a liquidation auction, casting a sombre shadow over the possibility of future reopening.
Of particular interest to patrons in the Palmetto State, is the news that one of its popular locations is amongst the temporary shutdowns.
South Carolina’s Temporary Closure
Myrtle Beach, one of only 11 Red Lobster locations across South Carolina, finds itself amongst the unfortunate restaurants facing an uncertain future, with its kitchen equipment currently being auctioned off online. The name of the beach town is synonymous with fresh shellfish and vibrant summer evenings – a fitting location for an establishment serving up endless shrimp.
Other Red Lobster locations in South Carolina
While Myrtle Beach’s establishment may be down for the count, other Red Lobster locations across South Carolina are currently operating under their normal hours, including Anderson, Greenville, Spartanburg, Aiken, Cayce, Columbia, Florence, Greenwood, North Charleston, and Sumter. The situation, however, remains fluid, operating in an atmosphere of uncertainty.
The Journey to Bankruptcy
In April, Red Lobster weighed an option of filing for Chapter 11 bankruptcy in order to restructure its debts, an enterprise challenge that the company disclosed openly to its stakeholders. Bloomberg reported that labor costs and lease liabilities had caused a significant disruption within Red Lobster’s cash flow. However, it was an unexpectedly popular promotional deal that tipped the chain’s finances into the red.
The Ultimate Endless Shrimp deal was a hit amongst customers in 2023. Unfortunately, the higher-than-projected uptake resulted in an $11 million loss in the third quarter. This promotional offer, which cost guests $20 in return for unlimited servings of two types of shrimp, was expanded to a permanent menu item as of June, but patrons are now expected to part with $25 for the privilege.
Such unfortunate events caused Red Lobster’s parent company, the Thai Union Group, to predict $20 million losses for the chain in 2023.
Where Next?
While Myrtle Beach bids farewell to its Red Lobster location, questions remain on how the brand will navigate these turbulent waters. The 87 locations listed as temporarily closed, spanning across from Alabama to Wisconsin, points to a sea change in Red Lobster’s fortune. Only time will tell how the chain will rise once again from the turbulent tides of these trying times.
