Red Lobster Says Q3 Losses , Are the Result of Popular , Unlimited Shrimp Deal.<br />NBC reports that Red Lobster's parent <br />company has disclosed the company's <br />unexpectedly large Q3 losses. .<br />NBC reports that Red Lobster's parent <br />company has disclosed the company's <br />unexpectedly large Q3 losses. .<br />According to Thai Union Group, the losses were <br />the result of Red Lobster's $20 shrimp promotion, <br />which was more popular than anticipated.<br />The proportion of the people <br />selecting this promotion was much <br />higher compared to expectation, Ludovic Garnier, Chief Financial Officer at Thai Union Group, via NBC.<br />This year, the company changed its annual all-you-can-eat-shrimp deal from a limited-time offer to a permanent one. .<br />The company said the decision was meant <br />to boost traffic when business tends to slow <br />in the third and fourth quarters of the year. .<br />While the strategy did bring in more customers, <br />bolstering the company's market share, low margins <br />from the popular deal presented a problem.<br />The company responded to the <br />promotion's surprising popularity by raising <br />the price from $20 to $22 and now to $25. .<br />It’s one of the iconic promotions for <br />Red Lobster, so we want to keep it in <br />the menu but, of course, we we need <br />to be much more careful regarding <br />what is the entry point and <br />what is the price point we’re <br />offering for this promotion, Ludovic Garnier, Chief Financial Officer at Thai Union Group, via NBC.<br />Thai Union Group invested in Red Lobster in 2016 and obtained the rest of the company from Golden <br />Gate Capital in 2020 with a group of other investors.<br />In March, Bloomberg News reported that <br />Thai Union Group would seek to sell its stake in the <br />restaurant chain if performance fails to improve
