Iconic restaurant chain and Olive Garden rival closes store for good after four decades of serving A

May 2024 · 3 minute read

RED Lobster has permanently closed one of its restaurants after four decades of business.

The seafood giant - an Olive Garden rival - has been impacted by the higher labor and food costs that have hit the restaurant industry.

A Red Lobster restaurant at the Almaden Plaza, San Jose has been permanently closed after 39 years of trading, per The Mercury News.

A spokesperson told the outlet: “Management teams and team members were given the chance to relocate to other Red Lobster restaurants whenever possible.”

Red Lobster still has a presence in the Californian city as its restaurant on Aborn Road is still trading.

The closures come amid reports that the restaurant chain lost more than $15million in the third quarter of 2022.

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It was almost five million more than execs had expected.

In January, bosses decided to shut down a Red Lobster restaurant in Beachwood, Ohio.

The restaurant had been serving Americans for more than 45 years but was reportedly underperforming compared to other branches.

Last December, a Red Lobster outlet in San Angelo, Texas closed down after 38 years of business.

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Red Lobster has said the closures are a normal part of the process and path to growth.

A spokesperson told The U.S Sun: “We regularly review our restaurant portfolios as part of the normal course of business.

"As a result, we have concluded that these locations are no longer right for Red Lobster.”

Last summer, the chain’s restaurant in Roanoke, Virginia was permanently closed after more than 43 years of trading, as per the local NBC affiliate WSLS-TV.

But, Red Lobster is not the only major restaurant chain that has closed down several of its outlets recently.

Restaurant Business has reported that Applebee’s chiefs expect to lose a net of 10-20 outlets by the end of this year.

In 2017, the chain had 1,782 outlets across the country but that number has reduced following a series of closures.

Last year, the company opened four restaurants but closed 13.

By the end of 2023, there may be just 1,560 outlets.

The casual dining giant has faced financial pressures generated by rising food costs and poorer sales.  

Pizza giant Papa Murphy’s closed 72 of its stores last year amid poor performance.

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Eric Lefebvre, CEO of the chain's parent company MTY Food Group, told analysts earlier this month: “We closed a lot of stores in 2022, unfortunately. The performance is not where we want it to be.”

The U.S. Sun reported that McDonald’s rival Steak 'n Shake shut down 30 restaurants last year.

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