Endless Shrimp Deal Was Scheme to Squeeze Red Lobster, Suit Says

Red Lobster's "Endless Shrimp" promotion was allegedly a deliberate scheme by its former seafood supplier, Thai Union Group, to intentionally harm the restaurant chain. Thai Union Group, which supplied shrimp for the promotion, is accused of orchestrating the deal to drive Red Lobster into financial distress. The lawsuit claims that Thai Union Group knew the $20 all-you-can-eat shrimp offer was unsustainable for Red Lobster's profit margins. This strategy, according to the suit, was designed to weaken Red Lobster and potentially acquire its assets at a reduced price. The promotion, launched in June 2023, proved to be a significant financial drain on Red Lobster, contributing to its decision to file for Chapter 11 bankruptcy protection in May 2024. Red Lobster's bankruptcy filing listed debts between $500 million and $1 billion. The company has since closed 99 of its locations. Thai Union Group has denied these allegations, stating that the promotion was a business decision made by Red Lobster's management.