Red Lobster’s Sudden Closing Sparks MAGA Backlash

Pro-Trump Americans are blaming Red Lobster’s sudden mass closures on President Joe Biden’s economic policies after the popular seafood chain announced nearly 50 store shutdowns.

Earlier this week, Red Lobster said 48 restaurants would be saying goodbye to guests for good, including five locations in California and Florida.

Another four are disappearing in Maryland and Colorado each, with many of the restaurant’s equipment up for auction to the highest bidder. The Northeast also got its fair share of Red Lobsters taken away, with the chain reporting around a dozen closures in New York and New Jersey.

The popular seafood chain reportedly was considering bankruptcy last month, according to Bloomberg and CNBC, and has faced significant shake-ups in its executive team over the past three years.

Upon hearing the news, many Trump supporters have said the closures reflect a failing economic policy from Biden, who is set to face Trump in the upcoming presidential election.

“I remember when my parents took us to Red Lobster when I was a kid, it was considered a fancy restaurant for special occasions,” Vince Langman (@LangmanVince), a self-described MAGA “ex-con deplorable”, wrote on social media platform X. “It looks like the end is near thanks to Bidenomics.”

Others were quick to point out the unemployment ramifications of restaurants like Red Lobster falling under.

“Under Joe Biden our economy is so good that suddenly 50 Red Lobster restaurants are closing nationwide… How many more will be unemployed…?” pro-Trump X user @stiletoprincess said.

Another X user @SamJuneau, also in favor of a second Trump presidency, shared: “We went to Red Lobster for our prom date dinner! Biden is destroying our country and its staples!!”

Red Lobster’s Financial Woes

Red Lobster’s dwindling profits have been occurring across a span of several years. While most restaurants experienced a mass hit to revenue during the coronavirus pandemic, Red Lobster also dealt with a blow to its finances in June of last year after offering its “Ultimate Endless Shrimp.”

The deal, which offered unlimited shrimp for just $20, was in part responsible for an operating loss of more than $11 million in the third quarter.

“It’s the perfect storm of bad economic forces at play that make Red Lobster’s current state a hard one to get out of that could have long-lasting effects on its restaurants,” Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, told Newsweek.

“The restaurant chain is getting hit on both sides of the coin, with rising costs not just for the food for customers, but the increased labor costs for employees, as well. Combine that with an Endless Shrimp promotion that the company underestimated in terms of both cost and popularity, and you have a situation where a sizable number of their locations are no longer economically sustainable.”

Since these financial woes, Red Lobster has reportedly been in talks of trying to find a buyer or filing for bankruptcy in an effort to restructure its debts.

Newsweek reached out to Red Lobster for comment.

While Beene said voters can make the argument that Biden’s administration is not doing enough to curb inflation, causing companies like Red Lobster to suffer the consequences, there are still specific decisions Red Lobster has made that has led to its specific financial situation.

“It’s hard to blame the president’s economic policy on an Endless Shrimp promo run amok,” Beene said. “Many businesses like Red Lobster have had difficulty adapting to a changing landscape in the restaurant game, and some wrong turns could ultimately lead the company down a path of endless financial woes.”

Fast food casual dining also has played a role, stealing a significant chunk of their business with the growth of chains like Chipotle and Chick-fil-A, said Kevin Thompson, a finance expert and the founder and CEO of 9i Capital Group.

“Inflation would be present regardless of whoever was in office,” Thompson told Newsweek. “Whether it’s Trump, Biden, or Watson, the shutting down of American business was the lead cause for imbalances with supply and demand during the pandemic. The shock has taken years to come down, and will have deep rooted repercussions for our economy, beginning with higher interest rates for longer.”

Michael Ryan, a finance expert and the founder of michaelryanmoney, echoed this sentiment, saying Red Lobster lost its relevance among American consumers long ago.

“When was the last time you thought about Red Lobster or went there? For most, it’s probably been years since the seafood chain was truly relevant,” Ryan told Newsweek. “Red Lobster’s struggles and recently announced mass closures of 50 locations nationwide are sadly not that surprising when you look under the hood.”

Ryan called the once popular seafood chain a “textbook case study” in prolonged mismanagement and strategic blunders. Even before the pandemic, the restaurant had experienced a long history or sales declines.

“Were government policies the best for restaurants? Maybe not,” Ryan said. “But let’s be honest. Red Lobster’s mediocre product and antiquated business model were the bigger culprits.”