On May 19, 2024, it was revealed that the operator of the U.S. seafood restaurant chain “Red Lobster” has filed for Chapter 11 bankruptcy (equivalent to Japan’s Civil Rehabilitation Law). The company cited rising prices and intensified competition from other restaurant chains as reasons for declining customer numbers, leading to deteriorating financial conditions.
Concerns Over the Future of the License – While the Japanese subsidiary is unaffected, there are concerns about the future of the license. Even though the sale of the business is being considered, there is interest in whether the brand will disappear. We will continue to monitor future developments.
Red Lobster Japan Confirms No Impact
The Japanese subsidiary expressed its position on April 17, when reports of the U.S. bankruptcy filing consideration emerged. They stated, “Financial management is handled domestically, and the management entity is different,” indicating that there will be no impact on stores in Japan.
History and Current Status of Red Lobster
Established in 1968, Red Lobster is a restaurant chain famous for its lobster and crab dishes. However, in recent years, competition with other restaurant chains has intensified, and its performance has been declining. According to U.S. media, the estimated total debt exceeds $1 billion (about 156 billion yen), and the company is considering reducing the number of stores in preparation for future business sales.
Impact of Rising Prices and Declining Customer Numbers
With rising prices, many consumers have been refraining from dining out, and Red Lobster has been affected. Seafood dishes are particularly expensive, and changes in the customer base and consumer thriftiness have had a significant impact.
Future Outlook and Store Reduction
Currently, Red Lobster is continuing operations while searching for a buyer for the business. This will inevitably involve reducing the number of stores. Specific details about the buyer and future store development have not been disclosed yet.
Popularity of Red Lobster in Japan
Red Lobster in Japan is popular as a place to experience the American atmosphere. It is often chosen for special occasion dinners and family lunches. With the clear announcement that the U.S. headquarters’ bankruptcy filing will not directly affect Japan, customers in Japan can continue to enjoy the restaurant with peace of mind.
Parent Company of Red Lobster Japan
The parent company of Red Lobster Japan (Red Lobster Japan Inc.) is CELUX HOLDINGS which operates as its subsidiary. CELUX HOLDINGS is involved in producing and consulting for restaurants.