Red Lobster’s cheddar bay biscuits are still available at the East Lincoln Highway restaurant in Middletown, at least for the time being.
The Darden Group, the company that owns Red Lobster and Olive Garden, announced recently it would be working to either sell or spin off the company’s 705 Red Lobster locations, 11 of which are in the Philadelphia region. Several media reports have also speculated that a closure of the chain is possible.
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The move comes after drops in sales and customers over the past few years. Darden’s Olive Garden and Long Horn Steak House locations have also seen declines in business, although they have been smaller.
“As consumer demand dynamics have changed, Red Lobster’s priorities and operating support requirements have come to differ meaningfully from those of Darden’s other brands, which are having greater success increasing appeal among consumers outside their core guest profiles,” a release from the company says.
The chain may be spun off into a company separate from Darden. However, a press release said the move is not definite.
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“As a separate company, Red Lobster will have greater freedom to pursue marketing and operating strategies that are more tailored to the needs of those consumers who fit its core guest profile,” the Darden statement reads.
The company also says they will be halting the opening of new Olive Garden locations for the moment.
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While Red Lobster is taking on water nationwide, Bonefish Grill opened locally in the past two years. The casual seafood chain has seen growth company-wide as Red Lobster has seen contraction. Growth of fast casual chains like Panera Bread and California Tortilla, both of which have locations in Middletown, have hurt sit down casual restaurants in recent years, analysts have noted.
For now, Red Lobster will remain open. However, the future is up in the air.
