Is Red Lobster going out of business?

With its delicious shrimp selections and mouth-watering cheddar biscuits, it’s undoubtedly safe to say that restaurant chain Red Lobster is one of the most popular and adored food establishments in the nation — think about it, how many casual dining chains are name-dropped by Beyoncé?

But as highly addictive as the food is and how satisfying the service is when dining in, the truth of the matter is that the decorated establishment could possibly be nearing the end of its long-standing run. First founded and opened all the way back in 1968, the seafood chain has since become a fan-favorite amongst the foodie community — although it’s now being reported that Red Lobster is in dire need of fixing some financial woes. 

As one of the most favored eateries in the entire country, it’s hardly a huge surprise that Red Lobster has found its brand name in a variety of online searches — specifically in reference to whether or not the food chain will ever close its doors for good or not. 

So, is Red Lobster actually going out of business?

As of right now, no, Red Lobster is not going out of business in the actual sense per se, but it’s been revealed via a Bloomberg report that the restaurant chain is considering filing for Chapter 11 bankruptcy at this time. The potential decision has been considered recently due to Red Lobster attempting to fix financial woes and to renegotiate particular leases, along with the rising costs of labor. And with the decision looming, it makes perfect sense as to why fans of the franchise would be worried about its future.

Contemplating bankruptcy is definitely not a surprise in this economy, either, with a variety of food establishments having closed their doors after the strike of COVID-19 — which drastically affected the economy and how much people spent on food while dining in at restaurants.

If anything, however, loosening up debts and creating more opportunities for business to grow is surely a smart decision for the future of Red Lobster, and for all those customers who enjoy their food.