Skip to comments.Darden announces sale of Red Lobster for $2.1B
Posted on 05/16/2014 8:45:25 AM PDT by kingattax
NEW YORK (AP) -- Darden Restaurants says it will sell its Red Lobster chain to investment firm Golden Gate Capital in a $2.1 billion cash deal.
The company, which also owns Olive Garden, had announced late last year that it planned to either spin off or sell Red Lobster to improve its financial performance.
Both Olive Garden and Red Lobster have been losing customers in recent years. The company has tried various menu changes and marketing campaigns in hopes of winning back business.
Part of the problem is the growing popularity of chains like Chipotle, where customers feel they can get the same quality of food without having to pay as much or wait for table service.
Red Lobster, which opened in 1968, helped popularize seafood among Americans. The first location in Lakeland, Florida, boasted platters that included frog legs and hush puppies for $2.50.
(Excerpt) Read more at finance.yahoo.com ...
Red Lobster needs to lower their prices.
Chipotle and Red Lobster have nothing in common for type of food. Red Lobster’s problem is menu prices. We never get by with less than $60 bill for 2. At Chipotle it is more like under $20. Apples and Oranges.
Red Lobster was dead to me when it endorsed Moosechelle. Same with Olive Garden.
I like seafood. But, am fortunate to be in an area with some excellent local seafood restaurants, so don’t ever go to Red Lobster.
Well, it’s the market at work. Businesses have to adapt to changing markets.
Speaking of Olive Garden, I also visit a number of fine local Italian places, so don’t ever feel the desire to go to Olive Garden either.
Chipotle?!?! Pay a premium price for a pedestrian burrito in a setting taken from Flashdance? I think Panera’s is a bigger problem for them.
Started boycotting Darden when The Mooch began to “help” them with healthier menus. (currently boycotting Subway for the same reason).
Apparently, the left started boycotting Darden because they stood against obamacare.
When will businesses learn?
“Red Lobster was dead to me when it endorsed Moosechelle. Same with Olive Garden.”
Thanks for that info.
They are now also dead to me.
They need better seafood.
Red Lobster is no Ruth’s Chris, but to compare them to Chipotle is a joke.
Great minds think alike (see post 7). Minutes apart :)
Menu changes and marketing gimmicks won't do anything until the American people get rid of the Marxist president and his comrades in the democrat party.
The Mooch is now being endorsed by Subway.
They’re buying protection. Just like when all the big US companies donate to Podesta.
I don’t like that comparison to Chipotle. Red Lobster is a real restaurant with traditional dining, Chipotle is a cousin to the food truck in the parking lot. More people these days just can’t afford a twelve dollar lunch or a twenty dollar supper.
Our oysters still had poop in them, as they didn't let them set long enough before they shucked them.
FU Red lobster! We'll never go back no matter who owns them!
..someone accurately said that when it comes to Italian food—Olive Garden is neither...
Purchased by Golden Gate Capital...
The firm was founded in 2000, by former investment professionals from private equity firm Bain Capital, as well as business consultants from its affiliate Bain & Company.
They also own Macaroni Grill, and clothing chains Express and J Jill, among others. Will be interesting to see what improvements they’ll bring to Red Lobster.
You are so right about that.
Chipotle is where you go when you only have 30 min. for lunch and want something tastier and healthier than the drive thru.
Olive Garden and Red Lobster are where you go with the spouse and/or family for a relaxing sit-down dinner.
Not really in much competition at all.
Red Lobster seafood is not good. In Washington state we have Ivar’s seafood which is much better, cheaper and faster.
Ruh roh...this can't be a good thing, considering her track record with endorsing. That, and the halal meat Subway's incorporating in their UK locations :(
Chipotle is my favorite fast-food restaurant... love their crispy chicken tacos... not as good as mine, and i do claim to make the best chicken taco ever, but for take out--i love Chipotle...
whenever you see a pic of the first manlady, it makes you want to do an involuntary personal protein spill.
There is only one good place that I found that makes great flounder. Its called Grecian Gardens out in west Columbia. Harbor inn used to be good but they went downhill years ago.
We live close enough to the gulf that it isn’t necessary to frequent any chain restaurant for sea food and there are several excellent family owned Italian restaurants locally. However, if restaurants had to survive on what our family has spent eating out since January they would all be closing their doors except for Chick A Filet, particularly since it’s peach shake time!
“The Mooch is now being endorsed by Subway.”
Subway is off my list anyway because they use meat obtained by killing the animals by slitting their throats without any previous method of killing their pain.
Red Lobster needs to stop selling codfish, formed and flavored to taste like lobster and crab.
You can get sued for this type of defamation, so I suggest hitting “abuse” on your post to have it removed, unless you can prove that the statement is true, or you’re reasonably relying on a reliable report.
I have found that most of my dining out experiences are less than satisfactory these days for one reason or another: food isn’t good, service is lousy, price too high, plus our locale now has added a “meals tax” ....
Bottom line, if I want lousy food and service, I can do it at home myself a heck of a lot cheaper than eating out.
It all tastes like sauced-up plastic.
Lobster Mac & Cheese Maine and langostino lobster meat blended in a creamy white Cheddar bacon sauce
Langostino is a Spanish word with different meanings in different areas. In the United States, it is commonly used in the restaurant trade to refer to the meat of the squat lobster, which is neither a true lobster nor a prawn. It is more closely related to porcelain crabs and hermit crabs.
I like Bullritos better.
i actually do like that look to start with... and then it can be dressed with beautiful things... but i do not see the interiors of Chipotle as something out of Flashdance... they are not depressed and decaying... the look is industrial to be sure... but it is simple, clean... much like the food...
Okay, well you’re the Latina, and I’m not, so I will defer on your judgement on such matters. Part of my problem is that I like jalapenos and Louisiana hot sauce and all sorts of spicy things, but dislike the flavor of chipotle peppers. Over the last few years, EVERYbody is making chipotle this and chipotle that. It’s just a matter of time before there’s chipotle Mountain Dew. So the name throws me off for starters. It’d be like a place calling itself the Cotto Salami Deli.
I have also been spoiled by genuine Mexican restaurants (El Rebozo) that do not qualify as “fast food” but charge no more than Chipotle.
Maybe I’ll give it another try. After Qdoba is no better, and Taco Bell is sort of the Saturday Night Live version.
In Washington state we have Ivars seafood which is much better, cheaper and faster.
Yes you do, fond memories.
i have never heard of it... i would try it if i were to come across one... my second favorite fast-food restaurant is Baja Fresh...
I’ve never understood the appeal of eating Sea Roach anyway.
“Red Lobster needs to stop selling codfish, formed and flavored to taste like lobster and crab.”
Huh??? If you know that why don’t others know that? Where are the lawsuits?
I’ve never been to a Red Lobster so I have no opinion on the chain.
oh please... share your dislike of Red Lobster, but at least do it honestly...
Yup—I like Baja Fresh also, but they are not around here, unfortunately.
i love spicy too! serrano chilis are my favorite! i absolutely do NOT like chipotle peppers... can't stand chipotle sauce or salsa... too smokey for my taste... :)
Prices too high,Servings too small.I wont pay 16.00 for 6 small shrimp.Quality is lacking as well and service is slow.Red Lobster used to be a great place to go.They used to have an admirals platter that could feed 2 people and you would still take home leftovers.Now I feel like I ordered from the childrens menu.
Chipoltle is fast food done right.Not to be compared to Red Lobster.The food is made fresh to your order while you watch.They sell burritos not seafood so why the comparison?
I have always loved your tagline! ;-)
You want good seafood, dont go to Red Lobster. It used to be good, but not any more.
Get your seafood at your local store and do it yourself.
I didn’t know they did that.
Panera is great company. They donate extra baked goods to the Salvation Army food pantries. It’s always the first stuff to go.
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