Say goodbye to broiled seafood trios. Bid adieu to garlic shrimp scampi. Darden Restaurants Inc. is looking to either spin off or sell Red Lobster, reports The Huffington Post. Like most decisions, this one comes out of a desire to boost shareholder value.
But why target Red Lobster? Restaurant chains like Red Lobster and Olive Garden have suffered since the recession, with people being more cautious about their spending. Consumers are also choosing chains like Chipotle over Red Lobster, where it tends to cost less and take less time than a sit-down meal at a restaurant. Which says a lot about the depressing state of America and its eating habits—but I digress.
Darden Chairman and CEO Clarence Otis said in a statement that there is significant change occurring in the restaurant sector, “with relatively low levels of consumer demand in each of the past several years for restaurants generally, and for casual dining in particular.” Darden says that it is also suspending the opening of new Olive Garden locations and will limit the opening of new LongHorn Steakhouse restaurants.
The planned Red Lobster spinoff still needs final approval from Darden’s board. WIll it involve make-your-own lobster burrito bowls? Or chose your add-ins lobster salads? Or maybe a portable grilled lobster nacho that you can eat in your car on your way to work while checking Twitter and answering your emails? Only time will tell what the new face of Red Lobster will look like, or if it will even exist at all.
[via The Huffington Post]