Red Lobster
Red Lobster’s infamous Ultimate Endless Shrimp promotion is back in the spotlight after a new lawsuit alleged the former owners played a major role in pushing the restaurant chain into bankruptcy.
The complaint was filed by the Red Lobster Litigation Trust against former majority owner Thai Union, accusing the seafood giant of prioritizing its own interests over the restaurant chain’s and of using the popular promotion to boost shrimp sales despite repeated warnings about the financial impact.
The lawsuit argues that the Ultimate Endless Shrimp promotion, which became a permanent $20 menu item in 2023, was not simply a failed marketing campaign but part of a broader strategy that ultimately contributed to Red Lobster’s financial collapse.
Lawsuit says Endless Shrimp was pushed despite warnings
According to the complaint, Thai Union allegedly treated Red Lobster as a way to increase demand for its shrimp business while forcing the restaurant chain to purchase shrimp at inflated prices and reducing access to competing suppliers.
The lawsuit claims company leaders were warned that making Ultimate Endless Shrimp a permanent $20 offering would result in significant losses. Despite those concerns, the promotion continued.
The complaint describes the promotion as a “car crash,” alleging restaurants struggled to keep up with demand, ran out of shrimp, and suffered heavy financial losses.
Red Lobster
The trust also claims the promotion contributed to an $11 million quarterly loss before Red Lobster filed for Chapter 11 bankruptcy protection in 2024.
Thai Union has denied the allegations, saying it intends to defend itself against the claims.
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The lawsuit seeks damages on behalf of Red Lobster’s creditors, arguing the former owner placed its own financial interests ahead of the restaurant chain’s long-term success.
Ultimate Endless Shrimp became one of the most talked-about fast food and restaurant promotions in recent years after customers flocked to take advantage of unlimited servings, with many pointing to the deal as a major factor in Red Lobster’s financial troubles before the company entered bankruptcy.
