Red Lobster Closes Additional Restaurants as Part of Restructuring Efforts
Red Lobster is continuing to close underperforming locations across the U.S., reducing its total number from 520 at the end of 2025 to 484 in September 2026, a decrease of 7%. The closures are part of an ongoing 'right-sizing' strategy following the chain's bankruptcy filing in May 2024. Notable locations that have shut down include its Columbus, Georgia outlet after 55 years and the Times Square location after 23 years. The seafood restaurant has been shedding unprofitable stores to streamline operations and reduce costs, particularly high lease expenses inherited from previous ownership decisions in 2014. CEO Damola Adamolekun emphasized that reducing size is a strategic move for long-term growth rather than retreating from the market. Red Lobster plans to continue improving customer experience through promotions like Endless Shrimp and initiatives such as Red Carpet Hospitality, while also considering future new store openings.
Topics: bankruptcy recovery corporate restructuring restaurant closures