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.