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TexasTowelie

(112,252 posts)
Fri May 16, 2014, 02:41 PM May 2014

Restaurant chain announces sale of Red Lobster

Source: AP

NEW YORK (AP) — Darden is setting Red Lobster adrift, but betting that it can still turn around Olive Garden's fortunes.

The company, based in Orlando, Florida, said Friday that it would sell its seafood chain to investment firm Golden Gate Capital in a $2.1 billion cash deal. The announcement came despite objections from some shareholders to the plan to either spin off or sell Red Lobster, which was announced late last year.

Both Olive Garden and Red Lobster have been losing customers in recent years, even as Darden changed their menus and marketing campaigns to win back business. Part of the problem is the growing popularity of places like Chipotle and Panera, where customers feel they can get the same quality of food without having to pay as much or wait for table service.

But Darden CEO Clarence Otis has noted that Red Lobster's customers have increasingly differed from those at Olive Garden and the company's other chains, which also include Longhorn Steakhouse and The Capital Grille.

Read more: http://www.tylerpaper.com/TP-Business/199911/video-restaurant-chain-announces-sale-of-red-lobster#.U3Za4CgbHJU

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Restaurant chain announces sale of Red Lobster (Original Post) TexasTowelie May 2014 OP
Now it'll truly be Dead Lobster. geardaddy May 2014 #1
I haven't had Red Lobster or Olive Garden money House of Roberts May 2014 #2
Exactly. They have supported cutting much of our income and still think we are going to be able to jwirr May 2014 #3
I have been to Olive Garden once in my life, murielm99 May 2014 #13
I visited the Red Lobster once, and the Olive garden once... yuiyoshida May 2014 #27
Wow, that's a great menu. Major Hogwash May 2014 #32
They don't even have one in New Orleans KamaAina May 2014 #50
I haven't visited either chain for years now. Their food is tasteless muck. rupertps8or28 May 2014 #31
+1, I agree, etc. eom uppityperson May 2014 #33
I believe Olive Garden is very supportive of Democrats yeoman6987 May 2014 #61
I haven't been to Red Lobster since the '80s. OG since the last century. HuckleB May 2014 #36
I went to Olive Garden on my birthday yeoman6987 May 2014 #60
Darden Fred Gilmore May 2014 #4
Corporate greed = Standard Operating Procedure n/t DeSwiss May 2014 #17
Golden Gate Capital ... GeorgeGist May 2014 #5
I'll guess the customer loss is due to … CRAPPY FOOD! Auggie May 2014 #6
mediocre food and a crappy economy... awoke_in_2003 May 2014 #20
When I was ten, I thought that Red Lobster was the ultimate cuisine. onehandle May 2014 #7
Red Lobster blkmusclmachine May 2014 #8
Darden is horrible to its workers Ash_F May 2014 #9
Yup geomon666 May 2014 #22
Message auto-removed Name removed May 2014 #10
Cheddar bay biscuits... Yum. Agschmid May 2014 #12
You can make them yourself... QED May 2014 #23
Ugh. KamaAina May 2014 #51
Well, here in New England MissMillie May 2014 #14
Those biscuits tho... Agschmid May 2014 #15
my first assignment NJCher May 2014 #16
Well, I never would threaten to bomb them MissMillie May 2014 #46
box restaurants trying to be indigenous NJCher May 2014 #47
"If it isn't fresh, it isn't Legal." KamaAina May 2014 #52
Yawn! americannightmare May 2014 #11
I've never liked chain restaurants stillcool May 2014 #18
I've been to both restaraunts a few times over the years and the food is mackerel May 2014 #19
That wasn't my experience IDemo May 2014 #37
I knew times had changed at Red Lobster when.... LovingA2andMI May 2014 #21
Make the biscuits at home. greatlaurel May 2014 #24
I work for a restuarant chain that was recently taken over by a capital group Fearless May 2014 #25
marketing their cheddar bay biscuits hopemountain May 2014 #26
Hope the food stays the same Reter May 2014 #28
There's a Red Lobster about 5 minutes away from me. ohnoyoudidnt May 2014 #29
They'd shore up their business with a draw-back. Chan790 May 2014 #30
Bad example, Chan... jmowreader May 2014 #44
I mean like Famous Dave's, Dickey's, Damon's or Tony Roma. Chan790 May 2014 #45
Based on all the issues that surround over fishing and contamination of seafood Lodestar May 2014 #34
They all suck, though Panera is tolerable. HuckleB May 2014 #35
Chipotle is flavorless but my kids worship it. I do like Panera though sometimes I go in just for mackerel May 2014 #38
Chipotle for over-priced burritos with no Chipotle in them... JCMach1 May 2014 #39
And ten times the flavor! HuckleB May 2014 #40
YEP... JCMach1 May 2014 #42
Chipotle is Taco Bell with a "modern vibe" for hipster wanna-be's. Xithras May 2014 #49
I find Panera hard to chew liberal N proud May 2014 #55
ask for different bread, then grasswire May 2014 #59
Still expensive subs liberal N proud May 2014 #65
chain restaurants depend on agribiz and horrible treatment of animals wordpix May 2014 #62
Local is good for the local economy. HuckleB May 2014 #64
Supposedly it was the value of the real estate where the restaurants as opposed to their quality Yo_Mama_Been_Loggin May 2014 #41
Yes this is a bargain basement buy underpants May 2014 #56
Haven't had Red Lobster in over 10 years mvd May 2014 #43
The Middle Class cannot afford to eat out any more. The Stranger May 2014 #48
Another example of holding company destruction liberal N proud May 2014 #53
In New England, we can get fresh seafood easily. Dawson Leery May 2014 #54
yes but have you noticed the size of fish like cod? They're babies wordpix May 2014 #63
so, the assets will be looted.... grasswire May 2014 #57
In Iowa our seafood options are limited exboyfil May 2014 #58
I've never been disappointed at Olive Garden. SevenSixtyTwo May 2014 #66

House of Roberts

(5,177 posts)
2. I haven't had Red Lobster or Olive Garden money
Fri May 16, 2014, 02:49 PM
May 2014

since 2009. Maybe I'm not the only one?

American business is killing its golden goose, via RWNJ party economics.

jwirr

(39,215 posts)
3. Exactly. They have supported cutting much of our income and still think we are going to be able to
Fri May 16, 2014, 02:51 PM
May 2014

afford their restaurants.

murielm99

(30,745 posts)
13. I have been to Olive Garden once in my life,
Fri May 16, 2014, 04:32 PM
May 2014

and that was not by choice. Someone else chose the lunch venue. I haven't been to Red Lobster in about five years.

Olive Garden was okay, but bland. If I have to choose, I know two or three really good Italian restaurants in my area that are not part of a chain. I would go to those any time.

yuiyoshida

(41,832 posts)
27. I visited the Red Lobster once, and the Olive garden once...
Sat May 17, 2014, 07:25 AM
May 2014

Here in the City by the Bay, the best place to have seafood is SCOMA'S in my humble opinion. Once you have eaten there, its hard to even think about going to a Red Lobster...





http://www.scomas.com/

 

KamaAina

(78,249 posts)
50. They don't even have one in New Orleans
Mon May 19, 2014, 02:53 PM
May 2014

for obvious reasons. Yet I read the tale of some New Orleanians who were so enticed by the commercials that they drove up to the nearest one, in Gulfport, Miss.

 

rupertps8or28

(7 posts)
31. I haven't visited either chain for years now. Their food is tasteless muck.
Sat May 17, 2014, 03:10 PM
May 2014

Not only that, I'm pretty sure Red Lobster is very supportive of the right wing establishment. Not sure about Olive Garden, but I'd assume the same for them.

At the end of the day, I like visiting the local smaller restaurant chains, since their food actually tastes good, and aren't so supportive of the Republicans.

 

yeoman6987

(14,449 posts)
60. I went to Olive Garden on my birthday
Mon May 19, 2014, 04:39 PM
May 2014

It was pretty good. That Salad they make is incredible. And the breadsticks are some of the best in the industry. I could go just for those two items alone, but of course I have to get my Angel Hair meat spaghetti. Makes for a wonderful evening out with family and friends.

 

Fred Gilmore

(80 posts)
4. Darden
Fri May 16, 2014, 02:57 PM
May 2014

Just closed both a Red Lobster and an Olive Garden in our town. The two restaurants were side-by-side in a common building. The employees were given no warning, just showed up for work to a chained up building 2 Saturdays ago. Our town took more than 2 years to settle with Darden on zoning changes to get the building built. They were open for less than 18 months before closing. Now the building sits empty, out of place, and a testament to corporate greed.

GeorgeGist

(25,321 posts)
5. Golden Gate Capital ...
Fri May 16, 2014, 03:13 PM
May 2014

was founded in 2000, by former investment professionals from private equity firm Bain Capital, as well as business consultants from its affiliate Bain & Company.


(insert theme from Jaws).

Response to TexasTowelie (Original post)

MissMillie

(38,562 posts)
14. Well, here in New England
Fri May 16, 2014, 04:34 PM
May 2014

we pretty much think that no self-respecting New Englander would ever eat at Red Lobster.

NJCher

(35,688 posts)
16. my first assignment
Fri May 16, 2014, 07:16 PM
May 2014

As a field marketing manager for Red Lobster was to travel to Brockton, MA, where RL had to close because of bomb threats. Apparently New Englanders thought they had a lotta' nerve serving up Florida lobster in New England.

My, what a community relations problem I had on my hands.



Cher

MissMillie

(38,562 posts)
46. Well, I never would threaten to bomb them
Mon May 19, 2014, 09:03 AM
May 2014

But eat at a Red Lobster.... in New England???????????

That's a total WTF moment.

The Weathervane is a stretch. Red Lobster is a no-go.

NJCher

(35,688 posts)
47. box restaurants trying to be indigenous
Mon May 19, 2014, 09:45 AM
May 2014
The Weathervane is a stretch.

Don't you just love it when corporate America tries to fit in with the locals?


Cher

stillcool

(32,626 posts)
18. I've never liked chain restaurants
Fri May 16, 2014, 09:17 PM
May 2014

there are very few where I live now, so I get to go to local restaurants that serve great food...things I would not cook at home, and have great service.

mackerel

(4,412 posts)
19. I've been to both restaraunts a few times over the years and the food is
Fri May 16, 2014, 09:39 PM
May 2014

ok. It's a step up from diner. The consistent problem with both places is their service sucks. Just terrible customer service in general, especially Olive Garden. It doesn't matter if I go to one in Vallejo, Stockton or even Reno, just terrible service. They don't treat you like you are a guest who has come to spend med price point to high price points.

IDemo

(16,926 posts)
37. That wasn't my experience
Sat May 17, 2014, 08:51 PM
May 2014

We haven't eaten at the local Olive Garden in over a decade even though it's only 5 minutes from us. I joined my mom and sister today and kept an eye out for breast-feeding, chain-smoking pitbulls, ha ha. It looked like their menu had taken a step up from years ago so might be worth another try. My entree was OK but I likely wouldn't order it again. The service, however, was great from start to finish. Our waitress was friendly, attentive and had good knowledge about the ingredients when asked. The manager made a visit to the table to ask how everything had been. I guess it depends on the location.

That said, we aren't lacking for good local establishments regardless of cuisine, so will probably stick to them in the future on the rare occasions we dine out.

LovingA2andMI

(7,006 posts)
21. I knew times had changed at Red Lobster when....
Fri May 16, 2014, 11:34 PM
May 2014

For Mother's Day...my Daughter took me out to dinner at RL. When I worked at RL as a teen, Mother's Day was a guaranteed two hour wait before being seated, period. It took my Daughter and I just twenty minutes....tops.

Feel bad for the employees despite the chain being owned by a corporation...as I saw one lady STILL working there from when I was a teen over 26 years ago. Believe it or not, back in the day, RL had a PENSION plan for the restaurant front line employees.

My, my, my how times have changed.

greatlaurel

(2,004 posts)
24. Make the biscuits at home.
Sat May 17, 2014, 12:48 AM
May 2014

Link to a recipe, or check the out the Top Secret Recipes books from the public library.
http://www.cooks.com/recipe/wz3do87u/cheese-garlic-biscuits-aka-red-lobster-biscuits.html

The corporate chains are in big trouble, as they treat their employees poorly, lobby for more government handouts for themselves and then serve bad food.

Olive Garden has gone downhill really fast. The last time we ate there was in 2012, very bad food and very poor service. They had cheapened everything, no doubt to raise profit at the expense of quality.

Fearless

(18,421 posts)
25. I work for a restuarant chain that was recently taken over by a capital group
Sat May 17, 2014, 02:32 AM
May 2014

Good luck. Even if the brand survives, it will be mercilessly penny-pinched. I pity those who work there. Their jobs are about to become considerably more difficult. These capital groups only look at people as numbers and how much they can squeeze out of each one of them. They are not interested in long term viability, just short term gain, so they can in turn sell of the company for a hefty profit. Failing that, dismantle it and make a bundle that way.

Good luck.

hopemountain

(3,919 posts)
26. marketing their cheddar bay biscuits
Sat May 17, 2014, 03:27 AM
May 2014

and recipes along with their scampi sauce would have saved their investment.

ohnoyoudidnt

(1,858 posts)
29. There's a Red Lobster about 5 minutes away from me.
Sat May 17, 2014, 01:52 PM
May 2014

Then there's the seafood restaurant I drive almost an hour away to get a good meal.

 

Chan790

(20,176 posts)
30. They'd shore up their business with a draw-back.
Sat May 17, 2014, 02:07 PM
May 2014

I live in CT. There is no reason to go to RL when you can get better fresh seafood in every single town in New England, often cheaper and always better. Likewise, I never understood why there are RL in MD or VA or NJ or lower NY or CA or OR or WA or LA or the coastal Carolinas.

Shore-up and draw back to the middle of the country where they don't have to compete with any moron who can get a food permit and drive to the dock to buy fresh seafood. They're never going to compete in seafood country. That's like trying to sell chain BBQ in the south.

jmowreader

(50,560 posts)
44. Bad example, Chan...
Sun May 18, 2014, 10:43 PM
May 2014

There are several chain BBQ places in the South that do really well...Red Hot & Blue, Smithfield's in North Carolina, Maurice's in South Carolina, Texas Best in you-know-where...

 

Chan790

(20,176 posts)
45. I mean like Famous Dave's, Dickey's, Damon's or Tony Roma.
Sun May 18, 2014, 11:06 PM
May 2014

Places that do a solid business catering to people that don't know that it's not-very-good BBQ. Dickey's ain't terrible...but it isn't good either.

You're naming regional chains, many of which all the locations are owned by the same individual or family and the quality-control is tight. Not one of them is comparable in their market-segment to Red Lobster.

Lodestar

(2,388 posts)
34. Based on all the issues that surround over fishing and contamination of seafood
Sat May 17, 2014, 05:46 PM
May 2014

I'm happy to see a lobster joint bite the dust. I hope it continues to fail for its new owner.

HuckleB

(35,773 posts)
35. They all suck, though Panera is tolerable.
Sat May 17, 2014, 07:08 PM
May 2014

Certainly, Chipotle is no cheaper, and it's fear mongering is just ludicrous. It will backfire eventually.

mackerel

(4,412 posts)
38. Chipotle is flavorless but my kids worship it. I do like Panera though sometimes I go in just for
Sun May 18, 2014, 12:06 PM
May 2014

a bowl of soup and just relax and read. They're more like a cafe in that way. No pressure to turn the table.

JCMach1

(27,559 posts)
42. YEP...
Sun May 18, 2014, 08:15 PM
May 2014

Chipotle 'isn't ' bad... it's just extremely overpriced for what it is...

It just isn't that 'good' ...


Xithras

(16,191 posts)
49. Chipotle is Taco Bell with a "modern vibe" for hipster wanna-be's.
Mon May 19, 2014, 12:32 PM
May 2014

Here in Central California, where I live, we don't get the lines snaking out of our Chipotle's like they do in the rest of the country. In fact, except for the lily-white lunch rush from the executive set, or the shoppers wandering in from their days at the shopping mall (which are still oddly successful here, despite being a dying business model elsewhere), most Chipotle's are empty.

Why? Because around here we know that any taqueria can sell you a burrito for $4 that will be twice the size and taste ten times as good, with ingredients that are fresher and better for you. Eating at Chipotle means paying twice as much for food that isn't even half as good.

Chipotle is popular simply because it's nearly impossible to find "real" Mexican food outside of California and the Southwest, so most American's don't understand what they are missing. In places where the local population is familiar with "real" quality Mexican food, they don't do so well, and are generally only popular with the lily-whites who won't go into any place with a Mexican name, and the wanna-be hipsters who just think it's "cool".

I'd rather eat a burrito off of a taco truck selling food to farmhands along a dusty highway than eat at a Chipotle. Most people who have eaten at those types of trucks will agree with me on that point.

grasswire

(50,130 posts)
59. ask for different bread, then
Mon May 19, 2014, 03:27 PM
May 2014

If you go on the web site, you will see all the different breads and rolls. The semolina bread with sesame seeds on top is very soft, for example.

I eat at Panera once a week, and also buy their day-old breads. No complaints here.

wordpix

(18,652 posts)
62. chain restaurants depend on agribiz and horrible treatment of animals
Mon May 19, 2014, 04:51 PM
May 2014

I won't go there. Even if you get something vegetarian, you can be sure it's grown with lots of pesticides and the plants are GMO.

Patronize your local organic restaurant, instead.

HuckleB

(35,773 posts)
64. Local is good for the local economy.
Mon May 19, 2014, 04:57 PM
May 2014

Organic food and local food doesn't mean safer, healthier or even better for the environment, however. The anti-GMO movement is anti-science to the core. It's all hyperbole.

Yo_Mama_Been_Loggin

(108,036 posts)
41. Supposedly it was the value of the real estate where the restaurants as opposed to their quality
Sun May 18, 2014, 08:13 PM
May 2014

that made this an attractive buy.

underpants

(182,836 posts)
56. Yes this is a bargain basement buy
Mon May 19, 2014, 02:57 PM
May 2014

Red Lobster was rolling just a few years ago from what understand. Don't ask me why it how but it was.

mvd

(65,174 posts)
43. Haven't had Red Lobster in over 10 years
Sun May 18, 2014, 10:41 PM
May 2014

Probably not missing much. I know that Olive Garden has gone down in quality. They are cutting corners with the ingredients, and it often feels very heavy to the stomach.

The Stranger

(11,297 posts)
48. The Middle Class cannot afford to eat out any more.
Mon May 19, 2014, 11:04 AM
May 2014

From the article, the high end chains are doing fine, but the lower end chains are suffering.

exboyfil

(17,863 posts)
58. In Iowa our seafood options are limited
Mon May 19, 2014, 03:27 PM
May 2014

In my community we do not have a mid-range place that specializes in seafood (or a high end place either). I eat at Red Lobster about once a year.

I do have to wonder about the comment that different customers go to Olive Garden and Red Lobster. It seems like the customers come from the same economic level. I got to think this will be end of Red Lobster (and probably Olive Garden). Three of the four places listed as part of Darden are located within two blocks of each other in our town. They must have many operational synergies (such as food deliveries) that will be lost in the split.

 

SevenSixtyTwo

(255 posts)
66. I've never been disappointed at Olive Garden.
Mon May 19, 2014, 08:19 PM
May 2014

Like said above, the bread sticks and salad are a meal alone and delicious. We ate there a couple of weeks ago for mother's day. However, the last time we ate at Red Lobster, I was sick all night like I ate two sticks of butter and a pint of olive oil with some mushy seafood stirred in. Good thing the tub is next to the throne. Their biscuits are good though.

I wish we had a restaurant I could get some fried mullet, white rice and black eyed peas with a big glass of sweet iced tea.

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