Is Red Lobster Going Out of Business? Here’s What You Need to Know
If you’ve recently searched “Is Red Lobster going out of business?” — you’re not alone. Rumors and speculation have been swirling online, especially after recent headlines about the seafood chain’s financial challenges. But what’s really going on with Red Lobster in 2025? Is the beloved restaurant closing its doors for good, or is there more to the story?
In this article, we break down the facts, clear the confusion, and provide an update on Red Lobster’s current status.
Contents
A Quick History of Red Lobster
Founded in 1968 in Lakeland, Florida, Red Lobster quickly grew into one of America’s most popular casual dining seafood chains. Known for its famous Cheddar Bay Biscuits, Endless Shrimp deals, and signature seafood platters, the brand expanded across the U.S. and internationally with hundreds of locations.
But like many restaurant chains, Red Lobster has faced numerous challenges in recent years — from shifting consumer behavior to rising operating costs.
Why People Think Red Lobster Is Closing
1. Financial Losses
Red Lobster has struggled with declining profits, particularly in the wake of the COVID-19 pandemic. The company has reported reduced foot traffic, increased labor costs, and inflationary pressures on seafood prices — all of which have affected its bottom line.
2. Store Closures
Several Red Lobster locations have quietly shut down across the U.S. in the past two years. This has fueled speculation that the company is going out of business. However, it’s important to understand that closing underperforming stores is a common business strategy and does not always indicate a full shutdown.
3. Ownership Changes
Ownership transitions can sometimes create confusion. Red Lobster has changed hands multiple times — from Darden Restaurants to Golden Gate Capital, and later to a Thai seafood supplier, Thai Union Group. Each transition has brought speculation about the brand’s future.
Did Red Lobster File for Bankruptcy?
As of mid-2025, Red Lobster has not officially filed for bankruptcy, but there are reports that the company is considering restructuring options. According to credible news sources, Red Lobster has hired financial advisors to explore ways to cut costs, reduce debt, and potentially sell or reorganize the business.
However, a restructuring plan does not always mean liquidation. In many cases, it’s a strategic move to keep the business running while improving its financial health.
Which Red Lobster Locations Have Closed?
Over the past year, Red Lobster has shut down a number of underperforming locations in states like California, Texas, and Florida. These closures are part of a broader effort to streamline operations and focus on profitable markets.
To check if your local Red Lobster is still open, visit the official Red Lobster store locator.
Is Red Lobster Still Open?
Yes, Red Lobster is still open for business. Despite some closures and financial uncertainty, many locations remain operational and continue to serve guests. The company is still running national promotions, offering online ordering, and celebrating seafood lovers nationwide.
What’s Next for Red Lobster?
Red Lobster appears to be at a crossroads. Here’s what could happen in the near future:
- Restructuring to reduce debt and improve profitability
- New ownership or investment to revive the brand
- Menu revamps and cost-cutting strategies
- Closure of more unprofitable locations
- Increased focus on online and delivery sales
The company may also shift its marketing approach to appeal to younger consumers and streamline operations for the digital age.
Final Thoughts: Is Red Lobster Going Out of Business?
While Red Lobster is undoubtedly going through financial turbulence, it is not officially out of business. Like many restaurant chains, it’s adapting to a tough economic landscape. Some locations are closing, and a potential restructuring is on the horizon, but the brand itself still operates and serves millions of loyal customers.
If you’re a fan of their famous biscuits or seafood feasts, don’t panic — your favorite menu items may still be just a reservation away.
Stay Updated
Bookmark this page for updates on Red Lobster’s business status. We’ll keep you posted with the latest developments as they unfold.
Steve George is Blogger, a marketer and content writer. He has B.A. in Economics from the University of Washington. Read more about Mzuri Mag.