Red Lobster closes restaurants to right-size operations

Red Lobster is continuing a strategic effort to reduce its footprint through restaurant closures following its 2024 bankruptcy. The seafood chain currently operates 468 locations in the United States, representing a 10% decrease from the 520 locations reported at the end of 2025. This reduction brings the company's footprint to approximately 25% smaller than its size at the end of 2023.

CEO Damola Adamolekun has stated that the company needs to scale down to build forward, focusing on shedding unprofitable stores and managing expensive leases. The chain has closed several long-standing locations recently, including sites in Georgia, New York, Alabama, Illinois, and California. The company previously acknowledged overexpansion as a contributing factor to its recent financial difficulties.

In addition to structural changes, the company has seen shifts in its menu offerings. The popular ‘Never-Ending Shrimp’ promotion, which previously cost between $19.99 and $24.99 depending on the location, has been discontinued as a permanent menu fixture.