First, Red Lobster got screwed by private equity.
Back in 2014, the Darden restaurant group spun off Red Lobster to a private equity firm.
Thai Union, under Kenny’s direction, elbowed out other shrimp suppliers, “leaving Thai Union with an exclusive deal that led to higher costs to Red Lobster,” according to the filing.
And if you’re the exclusive provider of shrimp to America’s biggest seafood chain, what’d be better than making that limited-time all-you-can-eat shrimp deal a permanent menu item?
The all-you-can-eat shrimp deal alone didn’t doom Red Lobster, but boy did it do some damage at a time when the chain was already buckling.
Persons:
Nathaniel Meyersohn, ”, Management wasn’t, Jonathan Tibus, Tibus, Paul Kenny, Kenny
Organizations:
New, New York CNN, Darden, Management, Thai Union, CNN
Locations:
New York, foundering, Bangkok, Thai