Who Owns Red Lobster?

Red Lobster was founded in 1968 by Bill Darden, who opened the first location in Lakeland, Florida. Darden had spent years in the restaurant industry and identified an opportunity to bring affordable, accessible seafood dining to American consumers who associated seafood restaurants with high prices and formal settings. The first Red Lobster offered fresh seafood at moderate prices in a casual, welcoming environment, a positioning that proved immediately popular.

The concept expanded rapidly throughout the early 1970s. General Mills, the Minneapolis-based food conglomerate, acquired Red Lobster in 1970, providing the capital and operational infrastructure needed for national expansion. Under General Mills' ownership, Red Lobster grew from a regional Florida chain into a national brand, opening locations across the United States and establishing itself as the dominant seafood casual dining chain in the country.

General Mills spun off its restaurant operations in 1995 as Darden Restaurants, Inc., which began trading on the New York Stock Exchange. Red Lobster was Darden's flagship brand at the time of the spin-off, alongside Olive Garden. The two chains formed the core of Darden's portfolio for nearly two decades.

Red Lobster's signature Cheddar Bay Biscuits, introduced in 1992, became one of the most recognized menu items in American casual dining. The biscuits, served complimentary with every meal, generated significant consumer loyalty and became a cultural touchstone that extended well beyond the restaurant's core seafood offerings.

In 2014, Darden Restaurants sold Red Lobster to Golden Gate Capital for approximately $2.1 billion, separating the chain from Olive Garden and Darden's other brands. The sale included a sale-leaseback transaction in which Red Lobster sold its owned restaurant properties and leased them back, generating immediate cash but significantly increasing the chain's long-term fixed cost obligations. This transaction was later identified as a major contributor to Red Lobster's financial difficulties.

Under Golden Gate Capital's ownership, Red Lobster attempted multiple turnaround strategies, including menu simplification, restaurant renovations, and promotional campaigns. The chain's unlimited shrimp promotion, intended to drive traffic, instead generated substantial losses as food costs exceeded promotional pricing. By early 2024, Red Lobster had accumulated nearly $300 million in debt and was unable to meet its financial obligations.

Red Lobster filed for Chapter 11 bankruptcy protection in May 2024. During the bankruptcy process, the chain closed approximately 100 underperforming locations, reducing its footprint from approximately 650 restaurants to roughly 545. Fortress Investment Group's RL Investor Holdings LLC was selected as the winning bidder in the bankruptcy auction, and the acquisition was completed in September 2024. Damola Adamolekun, the former CEO of P.F. Chang's, was appointed as Red Lobster's new chief executive to lead the post-bankruptcy restructuring.