It used to be snow crab, but now it’s the restaurant’s new take on the menu item. “I tried the Bairdi crab recently, which is a variation on the snow crab, and that is my new favorite,” Adamolekun said in an interview with The Wall Street Journal that was published early Monday. Bairdi crab legs are wild-caught and sourced “directly from the icy cold waters of the Bering Sea,” according to Red Lobster, and offer a meatier and sweeter taste than snow crab legs. Photo courtesy Red LobsterAdamolekun knows the ins and outs of the menu. He frequented the restaurant chain even before being named CEO, he previously told WSJ. He would reportedly speak with employees and customers to understand if it was worth diving into a leadership position at Red Lobster.In an effort to turn a sinking ship around, America’s beloved seafood chain filed for bankruptcy back in May. The company had lost its sea legs, closing dozens of locations across the U.S. after suffering millions in operating losses. But now, the new CEO is breathing new life into Red Lobster, which he’s called “without exaggeration, one of the most important companies in American history.” His $70 million comeback plan, financed by Fortress Investment Group, addresses some of the seafood chain’s shortcomings, including aging restaurant interiors, but Adamolekun is zeroed in on one thing in particular: the menu. Adamolekun, who previously served as CEO of Asian-fusion chain P.F. Chang’s, is relying on new menu items—but also truncating the menu—to help Red Lobster come out stronger after bankruptcy. He told TODAY there will be a net 20% reduction in menu items, but the company also introduced new dishes like bacon-wrapped sea scallops, lobster bisque, lobster pappardelle pasta, grilled mahi, and parmesan-crusted chicken. Adamolekun also wants to improve the layout and overall appearance of the menu itself to help customers find the best deals. “If you were to say, ‘Where’s the value in this menu?,’ you have to hunt for it,” he said in his latest WSJ interview. “So there’s things you can do, both in terms of reducing the number of items, but also just the layout, the aesthetics, the photography.”Red Lobster did not immediately respond to Fortune’s request for further comment. Adamolekun has been paying close attention to the menu, especially since one now-discontinued item previously plummeted the company into financial ruin.How endless shrimp tanked Red LobsterAlthough not the complete culprit of Red Lobster’s financial woes, one promotion offered by the restaurant acted as the nail in the coffin. The endless shrimp promo proved to be exceedingly popular with patrons, but made almost no financial sense for Red Lobster. In fact, the company suffered millions in losses from the promotion, which allowed customers to eat bottomless shrimp for just $20. Videos across social media platforms showed customers taking advantage of the promo, inhaling sometimes more than 100 shrimp in one sitting. The average global price of shrimp is about $8 per kilogram, according to the International Monetary Fund, and one kilogram of shrimp contains about 30-40 shrimp, according to Novin Seafood. That means patrons gorging themselves on prawns led to losses for Red Lobster, which had originally offered the promo as a way to get customers back in the door.But Adamolekun says the ship has sailed on the endless shrimp promo—and it will never come back.It’s “because I know how to do math,” Adamolekun told TODAY in a recent interview. Turning Red Lobster aroundAdamolekun is in charge of Red Lobster’s rebound, and that’s no small task considering there are more than 500 locations still open. Aside from making menu changes, he is also dedicated to improving the restaurant experience, starting with the location interiors. The first stage in fixing up Red Lobster locations is to address problems that should’ve been solved years ago, like broken HVAC units, broken tile, and faulty kitchen equipment and furniture, Adamolekun told WSJ. Second, he’ll focus on how to “inject energy into the restaurant,” by changing up the music and lighting. The third stage of improvement will be a complete remodel of the restaurants, he said. This is a task he’s had experience with, having overseen the remodel of the entire fleet of P.F. Chang’s restaurants. Each P.F. Chang’s location remodel cost about $300,000 to $400,000 per restaurant, but the changes boosted sales 5% to 10%, Adamolekun told WSJ. So far, only three Red Lobster locations have gotten the full upgrade, according to WSJ. He has also been carrying out his other mission of updating his C-suite. During the past few months, he’s appointed a new chief marketing officer, chief financial officer, and chief operating officer. These restaurant industry veterans, plus Adamolekun, must turn the tides at Red Lobster. “It’s a challenged industry, right? But I took over P.F. Chang’s during COVID,” Adamolekun told WSJ. “I’m used to entering at a tough time.”How many degrees of separation are you from the globe's most powerful business leaders? Explore who made our brand-new list of the 100 Most Powerful People in Business. Plus, learn about the metrics we used to make it.
