CNN
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Crimson Lobster is in hassle. Its answer: all-you-can-eat lobster, simply months after an countless shrimp promotion led to deep losses that the corporate remains to be attempting to dig out of.
In celebration of its annual Lobsterfest, Crimson Lobster is giving 150 winners an “Infinite Lobster Expertise,” a two-hour complimentary feast of limitless lobster, two sides and Cheddar Bay Biscuits.
The Florida-based chain is hardly the primary retailer to make use of these sorts of stunts to get consideration. However the Infinite Lobster Expertise comes at a tumultuous time: Crimson Lobster reported a file $12.5 million working loss within the fourth quarter of 2023.
And in January, minority investor Thai Union Group introduced its intent to exit Crimson Lobster, citing a $19 million loss from Crimson Lobster throughout the primary 9 months of 2023. The Covid-19 pandemic, excessive rates of interest, rising prices and trade headwinds in the end brought about Crimson Lobster to have “unfavorable monetary contributions to Thai Union and its shareholders,” stated Thiraphong Chansiri, the CEO of Thai Union Group, in a January 16 assertion.
On a February 19 earnings name with analysts, Thai Union Group chief monetary officer Ludovic Garnier up to date the $19 million determine and stated Crimson Lobster generated $22 million in losses for Thai Union Group throughout the whole lot of 2023.
Chansiri confirmed on the earnings name that the corporate is within the strategy of promoting its stake in Crimson Lobster and stated the method might take three to 4 months. “We’re not anticipating to get something a lot from the sale,” stated Chansiri, in keeping with a FactSet transcript of the decision.
A earlier all-you-can-eat deal contributed to Crimson Lobster’s monetary woes. In June, Crimson Lobster introduced that its “Final Infinite Shrimp” deal would develop into a everlasting menu merchandise. Regardless of elevating the preliminary worth from $20, to $22 and to $25 throughout 2023, the recognition of the merchandise and lack of recent visitors factored instantly into an $11 million working loss for Crimson Lobster within the third quarter of 2023.
Whereas Thai Union seems for patrons, Crimson Lobster continues with Lobsterfest — an annual occasion began by the chain in 1984.
Beginning February 20 and whereas provides final, 150 winners may have an opportunity to take pleasure in Crimson Lobster’s free feast. However there’s a caveat: The expertise features a most of 12 one-and-one-fourth pound Maine lobsters. If you happen to make it previous 12, you’ll be provided Maine lobster tails or Caribbean Rock lobster tails. Whereas the meals is free, drinks, tax and gratuity usually are not included.
In step with custom, the Florida-based chain is providing 10 limited-edition menu objects to have fun Lobsterfest, together with 5 new dishes such because the Crispy Lobster & Shrimp Stack and the Lobster Lover’s Duo.
The prospect to win the Infinite Lobster Expertise can be marketed by means of Crimson Lobster’s social media channels, together with Facebook, X, Instagram and TikTok.
As Crimson Lobster followers wait for his or her likelihood to win a feast, Chansiri, Thai Union’s chief govt, has no plans to indulge within the delicacy of the ocean.
“Different individuals cease consuming beef,” he stated on Monday’s earnings name. “I’m going to cease consuming lobster.”