Restaurant chain Red Lobster continues to hemorrhage money due to several bad financial decisions and factors. Now, the restaurant announced that it is set to close 23 more of its locations across the United States.
And yes, the Tara Boulevard location in Jonesboro, Georgia is on the list.
Which Atlanta-Area Red Lobsters Will Stay Open (For Now)?
- 3360 Camp Creek Parkway, Atlanta, Ga. 30344
Why Is Red Lobster in Financial Trouble?
Red Lobster is facing financial trouble due to several factors, including declining customer traffic, inflation, and rising costs for key ingredients like seafood. The chain has struggled to maintain profitability amid higher food and labor costs, especially during and after the COVID-19 pandemic.
Additionally, Red Lobster’s mid-range pricing strategy is being squeezed between cheaper fast-food options and higher-end dining experiences. This has made it harder for the brand to attract customers, especially as dining preferences shift and competitors emerge.
Moreover, Red Lobster has faced challenges in adapting to changing consumer preferences, including the growing demand for healthier, more sustainable, and diverse dining options. Its traditional menu and dining model may seem outdated to some consumers.
The financial strain has also been impacted by changes in ownership over the years, leading to inconsistent management strategies.
Which Red Lobster Locations Are Closing?
The following Red Lobster locations are set to shut their doors for good:
- Arizona — 1521 S. Yuma Palms Pkwy., Yuma
- Arkansas — 8407 W. Markham St., Little Rock
- California — 8703 Murray Drive, La Mesa
- Colorado — 4925 N. Academy Blvd., Colorado Springs
- Florida — -326 Miracle Strip Pkwy., Fort Walton Beach
- 5110 N. 9th Ave., Pensacola
- 8909 U.S. Highway 19, Port Richey
- Georgia — 6550 Tara Blvd., Jonesboro
- Illinois — 1604 N. State Road 50, Bourbonnais
- 902 Commons Drive, Geneva
- 4625 N. Sterling Ave., Peoria
- Indiana — 4353 Franklin St., Michigan City
- Minnesota — 8900 Golden Valley Road, Golden Valley
- 12515 Elm Creek Blvd. North, Maple Grove
- Missouri — 2381 Maplewood Commons Drive, Maplewood
- New York — 925 Hunts Point Ave., Bronx
- 750 Upper Glen St., Queensbury
- North Carolina — 304 A Western Blvd., Jacksonville
- Ohio —17227 Southpark Center, Strongsville
- South Carolina — 1270 Knox Abbott Drive, Cayce
- Virginia –555 S. Van Dorn St., Alexandria
- 4415 S. Laburnum Ave., Richmond
- 709 Independence Blvd., Virginia Beach
What Is the History of Red Lobster?
Red Lobster was founded in 1968 by entrepreneur Bill Darden in Lakeland, Florida. The restaurant began as a single seafood restaurant aimed at making fresh seafood more accessible to middle-class families. It quickly gained popularity due to its affordable prices and high-quality seafood offerings, leading to rapid expansion.
In 1970, the company was acquired by General Mills, which helped fuel further expansion across the United States. By the 1980s, Red Lobster had become a well-known national chain with hundreds of locations, offering signature dishes like cheddar bay biscuits, shrimp scampi, and a variety of seafood platters.
In 1995, General Mills spun off its restaurant holdings, including Red Lobster, to create a new company called Darden Restaurants. Under Darden, Red Lobster continued to grow and remained a cornerstone of the casual dining industry. However, by the 2000s, the brand began experiencing challenges due to changing consumer preferences, economic downturns, and increased competition.
In 2014, Darden decided to sell Red Lobster to Golden Gate Capital, a private equity firm, for $2.1 billion. The sale was part of a broader strategy to refocus on Darden’s other brands like Olive Garden and LongHorn Steakhouse. Under Golden Gate Capital, Red Lobster went through various management changes and attempts to revitalize the brand, including efforts to modernize its menu and restaurant design.
In 2020, Red Lobster was sold again, this time to a consortium led by Thai Union, a major seafood supplier, alongside other investors. Despite the ownership changes and rebranding efforts, Red Lobster has continued to face financial challenges in recent years, driven by rising costs, competition, and evolving dining trends.
Final Word
When it comes to seafood, Red Lobster has had a footprint in Atlanta for decades — but it’s not the only tuna in town. Check out our Atlanta Seafood Guide.
