Question 1

Why did Red Lobster file for Chapter 11 bankruptcy in 2024?

Accepted Answer

The chain had significant debt, including liabilities of over $10 billion

Answer

Traffic declined by 30% since 2019

Answer

Darden Restaurants sold Red Lobster in 2014

Answer

Pricing issues with the Ultimate Endless Shrimp promotion

Question 2

What was one of the main operational issues Red Lobster faced leading up to its bankruptcy?

Accepted Answer

The chain had a 30% drop in guests since 2019

Answer

Red Lobster expanded to new locations

Answer

The Ultimate Endless Shrimp promotion generated high revenue

Answer

Fortress invested in more menu items

Question 3

Which promotional strategy had a significant financial impact on Red Lobster?

Accepted Answer

Ultimate Endless Shrimp promotion cost the company $11 million

Answer

New seafood platter introduction

Answer

Buy one get one free lobster rolls

Answer

Happy hour deals on drinks

Question 4

Who became the largest shareholder of Red Lobster after its sale in 2014?

Accepted Answer

Thai Union Group

Answer

Golden Gate Capital

Answer

Fortress Investment Group

Answer

Darden Restaurants

Question 5

What major change occurred regarding Red Lobster in 1995?

Accepted Answer

General Mills spun off the chain, creating Darden Restaurants

Answer

Red Lobster was acquired by Thai Union Group

Answer

Red Lobster became a publicly traded company

Answer

Darden Restaurants changed its name to Red Lobster

Question 6

What was a significant financial move Red Lobster made to address its challenges?

Accepted Answer

Red Lobster received a $70 million investment from Fortress

Answer

Red Lobster increased menu prices

Answer

Red Lobster merged with Darden Restaurants

Answer

Red Lobster sold its seafood supply chain

Question 7

What was a factor contributing to Red Lobster's inconsistent sales performance?

Accepted Answer

Traffic declined significantly affecting customer visits

Answer

Red Lobster opened many new locations

Answer

The introduction of new menu items boosted sales

Answer

The chain was promoted heavily on television

Question 8

What financial liability did Red Lobster face before filing for bankruptcy?

Accepted Answer

Over $10 billion in debt

Answer

$70 million in cash reserves

Answer

$2.1 billion in assets

Answer

$11 million in promotional costs

Question 9

What major change did Red Lobster undergo in 2014?

Accepted Answer

Red Lobster was sold off to Golden Gate Capital for $2.1 billion

Answer

Red Lobster rebranded its menu items

Answer

Red Lobster became part of Darden Restaurants again

Answer

Red Lobster launched a new advertising campaign

Question 10

What was one of the key issues Red Lobster faced in its financial performance leading up to bankruptcy?

Accepted Answer

Dwindling cash reserves

Answer

High customer satisfaction ratings

Answer

Expansion into international markets

Answer

Increased sales from new menu items

Related quizzes

Related quizzes