Red Lobster's $20 Ultimate Endless Shrimp promotion was exciting, but all good things must end.
In the third-quarter earnings call this month, a spokesman for the restaurant chain's parent business said the price had jumped from $20 to $25 in five months due to unexpected demand and declining profits.
The proportion of the people selecting this promotion was much higher compared to expectation.
The all-you-can-eat promotion was formerly a rare offer. However, Red Lobster declared in June that the offer was permanent. With the price bump, Red Lobster may have overreached.
After the permanent promotion, the corporation lost $11 million. “We knew the price was cheap, but the idea was to bring more restaurant traffic,”.
The restaurant has quietly raised prices for months to offset increased demand and falling earnings. Starting at $20, it rose to $22 and now $25.
While the unending shrimp offer may cost extra, Red Lobster fans don't have to worry about it ending soon.
It's one of Red Lobster's iconic promotions, so we want to keep it on the menu, but we need to be much more careful about the entry point and price point.