Red Lobster CEO says the seafood chain could kill more locations and menu items to stay afloat

This comes after years of challenges for the seafood chain, which filed for bankruptcy and was forced to close dozens of restaurants to improve its bottom line. But Adamolekun, who also helped usher in a recovery for Asian-fusion chain P.F. Chang’s, isn’t scared of a challenge.

“I think this can be the greatest comeback in the history of the restaurant industry,” he told Fortune’s Ruth Umoh in late 2025 interview in the CEO Playbook vodcast. “To lead that would be a once-in-a-lifetime opportunity.”

To help achieve the turnaround Adamolekun envisions, it requires trimming the fat. The CEO told The Wall Street Journal in an interview published Tuesday that the company is reviewing its real-estate footprint and leases in order to cut costs to save the company’s bottom line.

“There’s a lot of positive signs, but we inherited a very damaged brand, so there’s still work to do to repair all of that,” Adamolekun said. The bright side he’s referring to is traffic to Red Lobster increased 6.5% in October, and Adamolekun told WSJ sales are up 10% from last year. 

Red Lobster’s push mirrors a broader trend across U.S. casual dining, where brands like Olive Garden, Chili’s, and Applebee’s have pared back their menus and streamlined operations. Industry analysts say smaller footprints and simpler menus can help operators manage higher labor and seafood costs while appealing to younger, value-conscious diners.

“In 2025, the most successful restaurants aren’t chasing trends for the sake of it,” according to hospitality industry consulting and tech firm Barmetrix. “They’re solving problems with systems—using automation, smarter menus, loyalty strategies, and new models that match the way guests actually want to eat.”

Adamolekun’s turnaround efforts helped Red Lobster claw its way out of bankruptcy, but now it’s time for improvement mode. 

“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.”

Damola Adamolekun’s turnaround vision

While Adamolekun is confident he can turn the ship around, he acknowledges he inherited a brand plagued by high costs and operational woes. 

Similar to his comeback playbook for P.F. Chang’s, Adamolekun is laser-focused on shattering inefficiencies at Red Lobster. This follows Fortress Investment Group’s acquisition, which injected $60 million into revitalization efforts such as menu tweaks and restaurant refreshes. Red Lobster’s fiscal outlook is already brightening under Adamolekun’s leadership, with the chain projecting a positive net income of $2.1 million by fiscal 2026, marking a turnaround from years of losses.

He said he’d never bring back the endless-shrimp promotion, one of many factors that propelled Red Lobster into bankruptcy in the first place. 

He told Today he’d never bring it back “because I know how to do math.” While the $20 endless shrimp deal made quite a splash with customers, the company reportedly suffered millions in operating losses. 

To help make up for those losses, the chain must reduce costs by scrutinizing leases and streamlining operations, which could mean more locations close. Currently, the restaurant chain operates about 550 locations, down from 700 a few years ago. The company has also laid off some location managers and about 10% of its corporate staff, the WSJ reported. 

Aside from layoffs and cost-cutting, Adamolekun also plans to give Red Lobster a facelift by improving the restaurant’s ambiance, refreshing its menu, and remodeling its restaurants. He also said he wants to lower prices for customers facing an affordability crisis.

“We should be the best deal for the best lobster because we do have the best product,” Adamolekun told Today.