Red Lobster entered bankruptcy last year, but quickly clawed its way out in just about three months. The once-struggling 57-year-old seafood chain had endured an $11 million endless-shrimp fiasco among other mistakes made.
But under the leadership of Damola Adamolekun, 36, who was previously the CEO of P.F. Chang’s, Red Lobster has officially turned the ship around. As the company continues to recover from bankruptcy, the chain expects positive net income in fiscal 2026, and adjusted Ebitda is expected to grow 43% from fiscal 2025 to 2027.
“I think this is going to be the greatest comeback in the history of the restaurant industry,” Adamolekun recently toldFortune’s Ruth Umoh in her new vodcast series, The CEO Playbook. “Of course it’s risky; I took over a company that’s bankrupt and had a lot of problems.”
But Adamolekun, who was featured on Fortune’s inaugural 100 Most Powerful People in Business list, knows about taking risks. He led P.F. Chang’s, an Asian-fusion chain, through the COVID pandemic, returned the company to profitability, and drove major operational and strategic change at the company. Under his leadership, P.F. Chang’s started generating revenues of about $1 billion, according to the National Restaurant Association.
That was “a crazy feat on its face, given the challenges the restaurant and hospitality industry is recovering from: the worst pandemic in 100 years, supply-chain challenges, a shallow labor pool, and a still-uncertain economy,” according to the National Restaurant Association.
But for Adamolekun, a former Goldman Sachs investment banker, that reward was worth the risk—and it could be the same at Red Lobster.
“Investing is the business of risk assessment, and I think you should manage your career the same way,” he told Fortune’s Umoh. “Risk on its own isn’t something to avoid. You just need adequate return.”
What Damola Adamolekun has planned for Red Lobster
Similar to his P.F. Chang’s playbook, Adamolekun is laser-focused on shattering inefficiencies at Red Lobster. Namely, he said he’d never bring back the endless-shrimp promotion, one of the factors that propelled Red Lobster into bankruptcy in the first place.
It’s “because I know how to do math,” Adamolekun said plainly during an interview with Today last November. While the $20 endless shrimp deal made quite a splash with customers, the company suffered millions in operating losses.
Adamolekun is also spearheading the company’s $60 million plan to keep the seafood chain afloat by stacking his C-suite with restaurant-industry veterans. His vision is to “inject more energy” into the restaurant locations, Adamolekun told Today, through new lighting, music, and decor.
That’s in an effort to improve and renovate current locations, while also fixing broken HVAC systems, torn carpets and chairs, and ensuring more locations don’t close in the future. During bankruptcy, Red Lobster shuttered dozens of locations. Now the chain operates about 500.
Adamolekun has also said he wants to “lower the check” for customers, making it more affordable to dine there.
“We should be the best deal for the best lobster because we do have the best product,” Adamolekun told Today.
Similar to other restaurant chains like Chili’s, Red Lobster is working to pare down its menu, eliminating items that don’t perform as well to increase restaurant efficiencies. This year, Red Lobster also ran its Lobsterfest promotion, offering items like $20 lobster rolls and unlimited Cheddar Bay Biscuits. The company also introduced a happy hour menu and brought back other fan favorites, SeafoodSource reported.
While that’s a lot of change in a relatively short period of time, Adamolekun isn’t shying away in his comeback plan.
“Some people refuse to set ambitious goals because they’re terrified of failure,” he told Fortune’s Umoh. “I’m not afraid of that. I don’t mind setting really high goals, and I don’t mind going after difficult things. You do your best and try to win.”
