Red Lobster filed for bankruptcy protection in May 2024 after its $20 Ultimate Endless Shrimp promotion led to severe operational and financial strain, according to court documents cited by fortune.com. The casual-dining chain reported $692 million in total liabilities and disclosed an $11 million loss linked to the campaign, which offered unlimited shrimp in various preparations as a permanent menu item starting summer 2023.
The promotion quickly attracted online mukbang creators who consumed shrimp in extraordinary quantities, turning Red Lobster locations into venues for marathon eating sessions. One influencer, Joey Kinsley, known as “Sir Yacht,” streamed himself eating shrimp for 10 hours straight. The surge in demand caused shrimp shortages and forced restaurants to turn away regular customers, escalating operational challenges. The campaign, initially promoted as an “iconic first,” inadvertently created a public relations crisis and strained the chain’s resources.
The fallout from the promotion highlights risks in casual dining when aggressive value offers meet viral social media trends. Red Lobster’s experience contrasts with other chains that have avoided permanent unlimited food deals due to cost and supply concerns. The bankruptcy filing underscores the financial impact of the promotion, which became a widely discussed topic in American restaurant newsrooms and social media throughout 2023 and early 2024.
Red Lobster’s bankruptcy filing in May 2024 revealed $692 million in total liabilities, marking a significant financial turning point for the brand after the promotion’s failure, according to fortune.com.