Red Lobster Closing: Rumors Denied, Owners Blames News On Poor Journalism
Don't claw out your taste buds yet, Red Lobster lovers. Contrary to rumors, the chain restaurant's parent company says that the seafood joint is not closing down.
Today, Darden Restaurants Inc. dispelled rumors that Red Lobster was closing its doors.
"Never have we said we would be closing restaurants," Rich Jeffers, director of media relations for Darden, said.
Confusion came on Dec. 19, when Darden Restaurants Inc. announced that they would either sell or make a spinoff of Red Lobster. According to Orlando Sentinel, LA Weekly added to the confusion by reporting that the chain was shutting down. According to Jeffers, the tabloid "was clearly being facetious."
"You had a couple outlets where clearly folks weren't practicing good journalism, and no one called to verify if what they read in LA Weekly was accurate," Jeffers told Orlando Sentinel.
Jeffers also said that any change made to the Red Lobster franchise would "simply be a change in ownership," and nothing more. According to Jeffers, the earliest new ownership will take place in July 2014.
LA Weekly has since updated its report, stating that Red Lobster is not closing.
There are currently 705 Red Lobster restaurants in the United States and Canada. Darden Restaurants Inc. also owns Olive Garden and Longhorn Steakhouse. The parent company plans on reducing expansion on these two family restaurants.
"As consumer demand dynamics have changed, Red Lobster's priorities and operating support requirements have come to differ meaningfully from those of Darden's other brands, which are having greater success increasing appeal among consumers outside their core guest profiles," Darden Restaurants Inc. said on Dec. 19. "As a separate company, Red Lobster will have greater freedom to pursue marketing and operating strategies that are more tailored to the needs of those consumers who fit its core guest profile."
Red Lobster reportedly made $2.6 billion last year in sales.