A Red Lobster location in Palm Desert, California, is set to close its doors on September 6 or 7, concluding a 14-year run for the seafood restaurant. Employees were informed of the closure on Monday.
The Palm Desert restaurant, which opened in 2012, was known for its live lobster tank, a characteristic feature of many Red Lobster establishments.
This closure is part of a broader cost-cutting strategy for the chain. Red Lobster CEO Damola Ademolekun has previously stated that the company needs to close more locations to address financial challenges. In February, Ademolekun described the brand as "very damaged" and highlighted the ongoing work to repair it.
Earlier this year, in May, Red Lobster closed its oldest continuously operating location after 56 years. A spokesperson for the company at the time noted that Red Lobster "continuously evaluates restaurant performance and lease terms and may, from time to time, choose to close or relocate select restaurants."
The chain filed for Chapter 11 bankruptcy in May 2024, reporting $76 million in losses in 2023 and subsequently closing approximately 130 stores during the bankruptcy proceedings.
Despite past financial difficulties attributed in part to its Endless Shrimp promotion, Red Lobster reintroduced the popular deal earlier this month. The company stated that the promotion was brought back due to customer demand, with the aim of improving its operational model to make it sustainable for guests, staff, and the business.
In June, Ademolekun expressed optimism, predicting "the greatest comeback in the history of the restaurant industry" and projecting a positive net income by the end of the fiscal year.