Case Study Write- up
March 17, 2015
Red Lobster is a chain of casual dining restaurants, founded and managed by Bill Darden. The headquarters of the company is located Florida, and it has branches in Japan, United Arab Emirates, and Canada. Red Lobster has approximately 698 branches. The company was formed in 1968, with the aim of providing a place where Americans will get some seafood. The company was successful in introducing fresh and new delicacies to their customers. These fresh dishes became popular, and this accelerated the growth of the company, and in 1980s, the company made its presence in Canada.
However, its Canadian experience was not good; this is because the company made lots of losses. Competition was stiff in Canada, and due to poor strategies and lack of sufficient market information, the company was forced to close some of its branches in Quebec, Canada. This happened on September 1997.
In 1995, Red Lobster, Olive Garden and Bahama Breeze were integrated, as part of the Darden Restaurants Inc. Joe Lee was then in charge as the Chief Executive Officer, and later on, he handed the company to Clarence Otis. The company is passionate about seafood, and over the years, the company has initiated the culture of innovation for the purposes of introducing and developing new menus that will satisfy the needs of its customers.
Red Lobster has become a household name and over the years was able to gain a good customer base. This has resulted in Red Lobster accounting for 43% of the market share in the casual dining seafood chain division. At the end of 2010, there were 694 Red Lobster locations and total revenue for fiscal 2010 was $7.11 billion. Red Lobster now offers a range of seafood products that include fresh fish, shrimp, lobster and snow crabs. The chain of restaurants grew quickly and was considered part of the “Big 7” of the casual dining chains.