Red Lobster Case Analysis

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Red Lobster

Red Lobster is a very successful chain of restaurants that offer a variety of seafood items.

This casual dining restaurant was founded and managed by Bill Darden.

The headquarters of the company is in Florida,and it has branches in Japan, United Arab Emirates, Canada, and Japan. Red Lobster has become a household name and over the years, gained a good customer base. This has resulted in Red Lobster accounting for 43% of market share in the casual dining seafood chain division. The company has an approximate number of 705 branches, and they are spread in different countries of the world. Red Lobster now offers a range of seafood products that include fresh fish, shrimp, lobster and snow crabs. The company was formed in 1968, with the aim of providing a place where Americans will get some sea food. Mr. Darden also targeted employers, by creating facilities where they could relax from the vigor’s of the day.

History and Development of Red Lobster

Charley Woods by and Bill Darden came up with an idea to form a restaurant in 1968. They named the company Harbor for Sea Food Lovers. It was the first restaurant in Florida and soon they opened other branches all over the State. It was happened in of 1970s and that time their main competitor was a restaurant called Kitchen Stove. The company was successful for providing fresh and new delicacies sea food 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.

Canadian experience was not good for Red Lobster because of losses they made in Canada. Competition was so high in Canada and due to having poor strategies and lack of market information, the company was not able to do well and forced to close some of its branches in Quebec, Canada. This happened on September 1997.

In 1995, Red Lobster, Olive Garden and Bahamas 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 sea food, 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.

The company provides a friendly and delightful environment for dining, and celebrations.

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