Red Lobster Bankruptcy: Unlimited Shrimp And Conflicts Of Interest
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- เผยแพร่เมื่อ 11 ก.ค. 2024
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In this video we analyze the rise and fall of the seafood restaurant chain Red Lobster which recently declared bankruptcy.
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0:00 - 2:36 Intro
2:37 - 7:30 The rise of Red Lobster
7:31 - 10:01 Post-pandemic deterioration
10:02 Unlimited endless shrimp - ภาพยนตร์และแอนิเมชัน
![[TH] Esports World Cup : Knockout Stage Day 2](http://i.ytimg.com/vi/xz3TW-k9HV0/mqdefault.jpg)
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Is it just me or is this video a reupload?
noooo we don't need more AI slop on the platform, it's like the fast fashion of videos.
Oh F' off. Unsubscribing.
@Wallstreetmillenial
Ehat an insane bad sponsor🤦♂️😅 Sorry, but you really must be some special kind of dumb to promote crap like this🤦♂️
If you actually use this tool you just lost ALL of any respect you had. Even more silly is you promote the end od your own Job.. Really..? Damn, that's really dumb🤣🤣🤣
Social media platforms hosting user-generated content should ban these kinds of non-user-generated content and tools being used to generate artificial/spoofed content.
The irony of a TH-cam channel makibg a video about someone going bankrupt, while promoting a service that will definitely kill channels like that..
This guy loves shilling horrible products in these vids
"Money"
Invideo is terrible.
It simply searches through stock videos that are already out there and pastes a bunch of them in an order that vaguely syncs up to the dialogue you wrote using a very AI sounding voice.
Nothing you couldn't do yourself with more precision in a similar amount of time.
Got sp0nsorblock never saw it el oh el
Need an explanation from @wallstreetmillennial
If “Unlimited Shrimp” is code word for Private Equity Firm, then yes, Red Lobster was done in by “Unlimited Shrimp”
unlimited shrimp = unlimited losses. They should have mixed in some Ozempic into the dipping sauce.
😂😂😂😂😂
😂
I couldn't finish the unlimited shrimp, you know when the last time it was that I couldn't eat unlimited shrimp?
@@AndyBlackburnart don''t worry, Red Lobster finished it for you, and now Red Lobster is finished. Now they have unlimited regrets.
The bankruptcy wasn't caused by the unlimited shrimp deal. The private equity firm that owns the chain purchased the restaurant through a leverage buyout and straddled the chain in debt and is now selling the assets for profit while using the unlimited shrimp deal as cover.
Thank you!! The unlimited shrimp "fiasco" is a red herring. I was hoping this is where the video would lead. Disappointing.
They had three shrimp suppliers, then dropped the two that didn't share owners with the restaurant. It looks a lot like they wanted to get every asset out fast before a bankruptcy gave their creditors a chance.
how can they sell assets for profit when it's bankrupt?
the private equity owns the land and buildings now @@method341
@@method341 Corporations are not like people. If you take out loans to buy a business and it goes bankrupt, you are on the hook. Corporations on the other hand are allowed to take out loans under the name of the very business they're BUYING. If the business goes under, the private equity firm that "purchased" the business is off the hook. When the assets of the failed business are sold, it goes to pay the creditors. But here's the twist, a portion of those "creditors" are other entities owned by the PE firm THEMSELVES. So not only are they debt-free, but they also profit from making the business go bankrupt.
I used to work there when I was 20, back in 1993. One thing I’ll say is they had the cleanest kitchen I ever worked in. And I worked in like 10 different restaurants.
I work for Olive Garden for 12 years and they way they ran their restaurants was top tier. Never worked for a cleaner place while I was in the service industry!
Good old American culture, making restaurants regret giving a buffet
People are poor. When I worked for Olive Garden (and it was in an area with lots of farmers and generally low income area) When they would do never ending pasta bowl, no one left with anything less than 3 togo boxes 😔 But at least they were smart enough to make it limited time
@@chanecialifecoach3070how do you lose money on pasta? You can get pasta for like less than a dollar a pound lol.
It's no mistake, the CEO ran the company into the ground with the all you can eat shrimp deal!
Private equity does it again. The Achilles Heel was giving up ownership in their own real estate. That devastated them during covid when traffic was extremely low, but they still had to pay rent.
Bingo. They also could of attained very cheap debt against the RE they owned during covid as well. Private Equity plays the same song each time. For many of these old legacy type brands the RE is the only real assets of value they have and PE knows this.
They got PPP loans and grants during COVID. That is why it shows rev.... err "normal" losses during 2021. So not owning properties wasn't a weakness, it just wasn't an advantage any longer.
I mean…wouldn’t the unlimited shrimp deal at least be for a limited time? Why let it go on for so long?
Because they are owned by a large seafood supplier who sells… shrimp. I think they were trying to extract some remaining value out of the company
The parent company didn't care, they were basically throwing RL under the bus.
Red Lobster should've invested in indoor shrimp farming
Mmm, antibiotics 😋
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The company loses millions of dollars every year since 2016, goes bust, then everyone blames it on free shrimp.
Its because this was caused by very wealthy people doing stuff that should be illegal and actually was during the period when the western economies did very well.
This kind of "destroy a company and thousands of jobs to make $50" is messed up.
FREE SHRIMP? WHEN DID THAT HAPPEN?
Private equity does it again. Amazing how leverage buyout firms were able to change their name to something less ominous sounding
Golly. Private equity had a hand in the demise of an iconic business. Never could have seen that coming.
They should have done it like olive garden. Unlimited soup, but you need to finish your bowl before another one.
Red Lobster should have done 5 shrimp and bowl of noodles for $20.
Thai Union (major shrimp producer) forced Red Lobster to stop buying shrimp from other sources.
Then they forced them to add all you can eat shrimp to their permanent menu despite objections from experienced Red Lobster employees.
Red Lobster wasn’t doing great to begin with but Golden Gate Capital and Thai Union stabbed them in the back!
I had a lot of great memories at red lobster, but the last time I was there, it was really sad. There was no one there and our food took like 45 mins to come out. Service was also the worst.
Rookie mistake, not fleecing their customers. Hopefully more businesses learn from this mistake and raise their prices.
I paid $16 for a meal at McDonald's this week. They've got it figured out.
When the government prints money to support corporations success while completely eliminating the middle class. That's the time to increase prices 100% and blame it on inflation. Genuinely every other company did it and had record profits while the economy crumbled and destroyed the lives of millions of Americans.
The Supply Side squeeze has always existed they are just open about it now. @MakerInMotion
Yeah, anything less than $50/meal is unacceptable.
Hahaha the satire is killing me! 😂
The irony of your sponsor choice is not lost on us.
I swear at this point he’s just doing it to piss people off lol. I love it. No fucks given
Anyone who’s getting bamboozled by sponsored ads on YT is a lost cause anyway. We should embrace our Ready Player One future!
A Private equity firm and Tik Tok influencers formed an a**hole alliance, got it.
Still mad I developed an allergy to Shrimp in 2022. Just out of nowhere. It was one of my favorite foods. And then unlimited shrimp drops.
You can blame Pfizer and moderna for that
@@thewokestoner8528can I also blame them for my parents divorce? 😂 Conspiracy theorists are cancer.
@@marcorock7031 no, your parents not loving you has nothing to do with the immune system unfortunately.
@@marcorock7031 by the way if you did a quick google search you would realise that it's a documented phenomenon. You trolls calling people conspiracy theorists online are just as stupid as the people you try to insult 😂. No wonder your parents don't love you lol.
@@marcorock7031 If you did a quick google search you would realise it's a documented phenomenon. Maybe next time do your due diligence before judging. Maybe your parents would love you if you weren't so stupid lol.
The TH-camrs filming themselves eating all that shrimp are gross.
InvideoAI sounds like they slapped a ChatGBT onto a cracked off-the-shelf video editor and are trying to pass it off as their own.
Thank you for using the ad to inform me that your shorts will be exclusively no-effort, low-quality AI slop. I now know never to touch them.
Starting to think this dude was AI all along…
Okay I thought you are an AI before you promoted invideo AI
how about - decrease in quality of food led to the decrease in customer traffic...
I honestly have only ever gone to Red Lobster when the unlimited shrimp deal was on. They shouldn't let customers stay for as long as they want though. That's just bad business.
I don't know why companies refuse to price unlimited deals higher
You call it conflict of interest. They would call it "synergy".
The guy who obtained a cost per shrimp of 12.5cents should be the new ceo with financial wizardry like that
Not watching video sponsored by ai
Good point
Red Lobster has been brought down by a private equity firm, not unlimited shrimp.
The video kinda understates how hard the chain was screwed by private equity.
It's because it's just a couple of kids thinking they know it all
I despise TH-cam shorts. I am so tired of being tricked into clicking one not knowing it is a short.
Whoever made the rule that you can get unlimited shrimp, but not unlimited sides needs to be fired. I'm pretty sure the sides are significantly cheaper than the actual shrimp.
The CEO underestimated how much crab-people could eat
So when the CEO wants to get fired they should do an "unlimited" promotion
I never watch TH-cam shorts, even from channels I like and am subscribed to.
I rarely if ever eat out. The last time I was in a red Lobster was in 2006. The shrimp there is so full of coatings that it is inedible to me . Today I just wait until shrimp is on sale for 2-3 dollars a pound and buy it in 5 pound boxes. Fried in beef tallow it's so much tastier and cheaper. I hate being served by a waiter/waitress so if I do go to a restaurant it HAS to be a buffet. I want to pay when walking in and never have to worry about a tip or anything else. I eat and leave within one hour.
lol i worked at red lobster for like 7 months in high school, it was pure hell but also a good learning experience. We closed at 11:30 but sometimes we would get out of there just before 2AM. I still have a lot of respect for those in the kitchen or any customer service in general.
With restaurants like Bonefish Grill Red Lobster has more competition than it used to. They must differentiate themselves better.
Got to dislike that sponsor is so fucking cringe.
Hear "AI" - click Thumbs Down! Also, this Invideo AI is reason why there is so much sloppy pointless video just for showing ads on TH-cam.
IHOP in my town did all you can eat shrimp. I went with friends and couldn't leave. The shrimp was tiny frozen shrimp imported from overseas. It sucked and when the waitress came back to refill shrimp, i said just bring me fries this time. I live in South Mississippi with fresh jumbo shrimp in the Gulf and i get frozen junk.
It's crazy how people thought Red Lobster was a fancy restaurant. People used to go into outrage on Twitter when you told them it wasn't. One user actually posted that RL was "great" until people started reading ratings on the internet. He actually blamed people for exposing RL by sharing information. LOL.
It's cool when you help peddle scams and also talk about scams
I personally don’t like how blame for companies struggling always (at least in part) gets put on higher wages. If a company can’t pay all their employees a living wage, then that shows failure on part of the company, not the fault of the employees wanting to be compensated fairly. Without any cooks and waiters, a restaurant can’t function. It’s basic decency to give living wages to the people who make the business able to operate!
Phony Stark's armor composition: Government subsidies, ketamine, and vapor-ware. Did I hear Howard Hughes name in there, somewhere?
It was the shrimp 🍤 it was private equity firm selling the real estate
First time i see someone doing an ad for a AI company, kinda sad to see a content creator promote and also use lazy AI tools that will probably at some point flood the site so bad you won’t be able to find real content between it. Like steam’s new games list being complete slop.
"Sir, we're losing money on the shrimp!
No worries, Digby. We'll make it up in volume!
Sooooo … anyone else not going to watch the shorts from this channel? 😬
The irony of WSM hating on ai, then getting a sponsorship from and AI company
So if they buy 20% of the lobster available does that mean now they wont be so the price myt come down due to a 20% increse in stock to sell?
Chicken of The Sea
I am.... were they crazy?!?!?! How could anyone underestimate the amount of crab a person can eat!??!? Crab is DELICIOUS!!!! If they invite me to eat them into bankruptcy, I will happily oblige them.
Because he's wrong, it was corporate management and debt, basically red lobster was bought to shove full of debt, then stripped for parts to maximize profit, the shrimp deal is just a boogeyman people blame
@@calebbarnhouse496 so, the shrimp was just a red herring?
@@cvrart more of a green hearing if you were red green colorblind
Is this script AI generated? It's hard to know after that intro.
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went there last Friday around 8pm, paper wrap silverware had bugs crawling on it. kind of feel why it went downhill.
the opportunity to gorge yourself on mediocre shrimp was the only reason people actually went to Red Lobster. Quality at the place was drowned in the bathtub, as the fish was leftovers from the sysco truck that couldn't even be sold to school cafeterias.
they got good shrimp!
They got what kind of shrimp, again?
I clap with Red Lobster 🦞
Something smells fishy.
This sale and lease back has bankrupted so many companies
Answer was easy, unlimited shrimp during 3hours will allow you to get more customers inside and set a limit to the possible losses
good shrimp!
Wall Street Millennial's Conflict of Interest is his refusal to blame private equity for killing red lobster. How Money Works wouldn't have done them dirty like that.
Red lobster should have bought Thia Union... Not the other way around...🤷
I have not been to Red Lobster...ever.
"Offer Unlimited Shrimp - expect customers to pay and eat nothing" - that can go wrong?
Why are you selling out and saying this had anything to do with food? It was the bankers.
In America...its not a restaurant....its a business...so i rarely went out to eat.
In europe, a cook invest in skills and knowledge....its a communal thing.
In America, a cook invest in stocks and other commodities. Its a business!
First time I'm hearing about unlimited shrimp
Your analysis is of the gods!!! I hold Thai Union 😂so sad 😢they made a big deal about the divestment and how everything will be hunky dory going forward but u need to watch Thai financial media to see that
I like it when Patrick Boyle did it 😬
Golden gate capital - well done lol
Do you know how many calories that is... If they collapse and die who's fault is it???
Red Lobster left Quebec 27 years ago due to poor revenue.
Much better choices here than that dreck. They stayed in Ontario. hmmm.
Olive Garden didn't stand a chance in Quebec - esp. Montreal with dozens of authentic Italian restaurants all over the quality/price map.
Great content but a sad story. Red Lobster offered good quality food at a decent price. Leveraging them up was a bad thing: Leverage kills when the business drops.
So this is why we can’t have nice things.
Shorts suck. They are for ADHD youths, informative long form videos like you make have a very different demographic as an audience. Usually older.
Thai Union robbed them, related party transactions are something that would require more disclose for a public company but here they have been able to cover up the details and just blame the shrimp promotion
Just about every one of the shrimp eating influencers should be dieting, not gorging on seafood.
Operating a red lobster isn’t shrimple. Not shrimple at all.
Great! With the paid version of your sponsor, I can create one of your videos myself. Just paste a few AI videos of your voice together. "Wall St Millennial" anyone??? Dunno about this sponsor.
Sounds like the end started with Golden Gate Capital took over in 2014 and sold all the land for a quick buck. From there it's going to go downhill without significant growth of profitability.
Claiming that crabs cannot be farmed is simply not true. There are massive RAS mud crab farms in SEA and this is one of fastest growing and most innovative parts of the industry. Not to mention the domestic crab condo tech being actively developed in Singapore and Thailand. To claim otherwise is disingenuous and not helping mariculture innovators in the least. Please try to remedy this in the future.
never trust private equity
We all know what happened to Red Lobster.We're not stupid.
Landchads win again!
'unlimited shrimp' is why they are going out of business? What level of incompentent managment would keep losing money with their bad decisions?
They've been going out of business slowly for more than a decade. Unlimited Shrimp is how their owners got the remaining cash out of a dying company to their main enterprise. The last puff of a used cigarette butt as, I think, Warren Buffet described it.
It is an insult to Italy to use the words "Italian food" and "Olive Garden" in the same sentence.
James Corbin eating away his problems again....
You guys just do this or am I mix me up with Robert Boyle
You mean Patrick? Pretty sure he covered recently.
Am a subscriber, and want to watch this vid, but always found RL repulsive. Never went. Private equity, another one bites the pavement. And here I am commenting for the algo.
This is completely wrong. It was because a private equity firm jacked up the rent.
Who would have thought? Selling garbage quality food for too much money in dingy restaurants with terrible staff wasn't a money maker. Olive Garden should be the next to fall for the same reasons, except they were designed to be as loud as possible which makes them even less appealing as a sit-down experience.
You should change your background music, it's tiring at this point