“Last year, Red Lobster reported $11 million in operating losses following its flubbed ‘Ultimate Endless Shrimp’ deal, which backfired when it reeled in too many customers after the limited-time promo became a permanent menu fixture last June. The restaurant chain later reported $12.5 million in losses in the fourth quarter of 2023.”
Every time I went to get a “All you can eat” deal from places that weren’t normally a buffet you would have to wait for a waiter to bring you more and the waiter hates the extra trips to the table and/or the owner tells their employees to drag their feet bringing more and makes the amount they bring miniscule. Just an awful experience the couple times I tried.
I don’t go out to eat except for a Asian buffet a couple times a year. I’d rather eat cheetos in the basement.
Sorry mcdonalds and taco bell, your shit was barely worth it when it was cheap. Insane prices coming out of the fast food industry these days.
I own a oven and can buy frozen pizzas, get fucked.
I’ve only gone to red lobster for the endless shrimp (though there are much better all-you-can-eat options out there). They should try making their regular offerings better. It also doesn’t help that private equity is in the middle of raiding the company and that’s probably the main reason they’re currently eyeing bankruptcy.
If that much loss is going to bring down a corporation? Maybe the corpo wasn’t being taken care of good enough
I bet this is just the setup for when they try to weasel their way out of California’s minimum wage and then when they win, they’ll use the same playbook to try to get around minimum wage in other states. This could cause a snowball effect where a nonzero number of employers get a free pass on select labor laws.
Hopefully they just lose and go out of business.
The Applebees of the sea.
If they are going into chapter 11 then the losses are privatized. Chapter 11 halts debt collection temporally while restructuring happens. Afterwords the previous owners own none of the company or a much reduced chunk of the company. The previous debtors now own most or all of the company. Similar to a bank repossessing a house it’s debtors repossessing a business.
It’s also possible for the judge or who they appoint to run the bankruptcy too determine there isn’t any hope saving the business and convert it to a chapter 7 which is close everything and sell off the assets to try and pay back the debtors.
Either was the original owners usually get little to nothing.
