Red Lobster was founded in 1968 and later became part of Darden Restaurants, where the company was taken over by Thai Union Group as part of a deal. However, Thai Union faced difficulties in management and sales growth.
Failures in strategic planning and strategic decisions forced the company to take cost-cutting measures, which affected its success. The drop in visitor numbers and changes in management led to a change in senior management at the company.
Under the pretense of “quality control,” Red Lobster ended two shrimp suppliers, leaving Thai Union with the exclusive deal. This resulted in increased costs for the company and a departure from the standard decision-making process for selecting suppliers.
Quick service and restaurant chains also put pressure on Red Lobster, causing sales to decline. Red Lobster has expressed readiness to undertake bankruptcy measures, including closing restaurants and seeking $100 million in financial support to keep the business afloat.
