About two years ago, Red Lobster’s millennial CEO declared he would never bring back the Endless Shrimp promotion that helped sink the seafood chain into Chapter 11 bankruptcy.
It’s “because I know how to do math,” Damola Adamolekun told Today in an interview published in November 2024.
But now there are rumors swirling around Adamolekun, 37, that he might be going back on his word.
Red Lobster is reportedly exploring a limited-time version of the Endless Shrimp promotion that could start as early as this month, people with knowledge of the plans told Bloomberg.
The seafood chain didn’t directly confirm the reports to Fortune, but said the promotion gets a lot of buzz.
“Endless Shrimp has long been a Red Lobster guest favorite and one of our most popular promotions for 20 years,” a Red Lobster spokesperson told Fortune. “We’re always paying attention to what our guests are asking for.
“While we don’t have anything to announce at this time, we’re grateful for the enthusiasm and encourage guests to keep sharing their feedback with us,” the spokesperson continued. “We’re listening.”
This potential move is a striking reversal from the position staked out less than two years ago by the chain’s CEO—and a major gamble for a brand still finding its footing after a bruising bankruptcy.
The Endless Shrimp debacle
For most of its history, Endless Shrimp was a beloved seasonal draw—a limited-time treat that reliably packed booths and generated buzz.
But the trouble started when Red Lobster’s former private equity owner, Thai Union, pushed to make the $20 all-you-can-eat promotion a permanent, everyday menu item in 2023—a decision internal management had opposed. The results were immediate and devastating: The promotion cost the company $11 million in a single quarter as diners showed up in droves and ate far more shrimp than made mathematical sense for the seafood chain.
Thai Union had supplied Red Lobster with shrimp for years, and the chain was also accused of buying shrimp for the promotion directly from Thai Union at above-market rates, bypassing normal procurement procedures and without securing a backup supplier, according to a sworn bankruptcy court declaration and a person with direct knowledge of the matter, Bloomberg reported. Thai Union disputed those claims during the bankruptcy.
The promotion led to shrimp shortages at dozens of restaurants, eroding the chain’s cash balance as people flooded restaurants. One YouTube creator with 500,000 subscribers bragged that he ate 200 pieces of shrimp over 10 hours for just $25.
To be sure, the decision to make Endless Shrimp permanent wasn’t the only factor that led to Red Lobster’s bankruptcy in May 2024.
“There were certainly big mistakes made over the last few years,” Adamolekun told CNN in an interview published in October 2024.
A costly 2014 real estate deal saddled the company with burdensome long-term leases, and a revolving door of owners and executives left Red Lobster struggling for years, the Los Angeles Times reported.
When Red Lobster filed for Chapter 11 bankruptcy, then-CEO Jonathan Tibus cited the need to address “several financial and operational challenges.” The week before the bankruptcy announcement, Red Lobster closed nearly 100 locations.
But with Adamolekun in place, people had been hopeful Red Lobster could turn itself around.
‘Greatest comeback in the history of the restaurant industry’
Adamolekun took the helm of the beleaguered seafood chain with a bold ambition.
“I think this is going to be the greatest comeback in the history of the restaurant industry,” Adamolekun told Ruth Umoh in her vodcast series, The Fortune CEO Playbook. “Of course it’s risky; I took over a company that’s bankrupt and had a lot of problems.”
His playbook included trimming the menu; adding trendy items like bacon-wrapped scallops and lobster bisque; launching a $5 happy hour; and restoring crowd favorites like hush puppies. He also said he was committed to renovating and updating aging restaurants.
As the company continued to recover from bankruptcy, it expected positive net income in fiscal 2026, and adjusted Ebitda is expected to grow 43% from fiscal 2025 to 2027. But reality hasn’t been as bright as expected.
Red Lobster lost money in four of the past five quarters, and 2025 sales remained at least 20% below pre-bankruptcy levels. Meanwhile, roughly 100 chronically unprofitable restaurants continue to drain profits, Bloomberg reported. Fortress Investment Group, which acquired Red Lobster in September 2024 through RL Investor Holdings, has grown reluctant to keep writing checks, according to Bloomberg reporting. Co-owner TCW also reduced the valuation of its Red Lobster stake to $4 million, a 90% cut from the year prior, regulatory filings reviewed by Bloomberg show.
Bloomberg also reported a high level of executive churn at Red Lobster, even though Adamolekun had appointed several new C-suite-level personnel early on in his tenure.
Still, Adamolekun has remained outwardly positive about staying focused on success.
“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.”
