Red Lobster entered bankruptcy proceedings in 2024 but quickly emerged from trouble in just three months. The 57-year-old seafood chain was once in trouble, enduring an endless $11 million shrimp fiasco, among other mistakes.
But under the leadership of former PF Chang’s chief executive Damola Adamolekun, 36, Red Lobster has officially turned things around. As the company continues to recover from bankruptcy, the chain expects net income to be positive in fiscal 2026 and adjusted EBIDTA is expected to grow 43% from fiscal 2025 to fiscal 2027.
“I think this is going to be the greatest comeback in the history of the restaurant industry,” Adamolekun said. wealthRuth Umoh in her video podcast series, CEO Handbook. “Of course, there were risks; I took over a company that was bankrupt and had a lot of problems.”
But Adamolekun was wealthIn the inaugural list of the 100 most influential people in business, know how to take risks. He led Asian fusion chain PF Chang’s through the COVID-19 pandemic, returning the company to profitability and driving major operational and strategic changes at the company. Under his leadership, PF Chang’s began generating about $1 billion in revenue, according to the National Restaurant Association.
The National Restaurant Association said, “This is a crazy feat on the surface, considering that the restaurant and hospitality industry is recovering from the worst epidemic in 100 years, supply chain challenges, labor shortages and a still uncertain economy.”
But for former Goldman Sachs investment banker Adamolekun, the rewards are worth the risk — and the same may be true for Red Lobster.
“Investing is a risk assessment business and I think you should manage your career the same way,” he told wealthUm. “Risk itself is not something to avoid. You just want adequate returns.”
Similar to PF Chang’s script, Adamolekun focuses on breaking out of Red Lobster’s inefficiencies. That said, he said he would never resume the endless shrimp promotions that were one of the factors that led to Red Lobster’s bankruptcy in the first place.
Adamolekun said candidly in an interview that it was “because I know how to do math” today Last November. Although the $20 Endless Shrimp deal caused quite a stir among customers, the company suffered millions of dollars in operating losses.
Adamolekun also spearheaded the company’s $60 million plan to keep the seafood chain afloat by bringing his top management together with restaurant industry veterans. Adamolekun tells us his vision is to “inject more energy” into the restaurant today, with new lights, music and decorations.
