Maj. Tyabji, Mgt. 375 Red Lobster Case Study
1 May 2013
Red Lobster was started in 1968 with one location in Orlando, FL. Now it has grown to one of the largest restaurant chains in the nation with 690 locations in all major cities. When Red Lobster was a young chain in the 1980s, it had a reputation for high quality seafood away from the water. In recent years, the company has struggled with its image. In a 2004 survey, participants questioned the “quality of the seafood” and the “taste/preparation of the seafood” (exhibit 6). Red Lobster needed to change how they are perceived by the public. Red Lobster should continue to overhaul their image, by completely remodeling the inside and outside of their almost 700 locations and improving the menu in order to attract the new Experiential market (Table A). Red lobster should move away from being an “over-indulgent”, lower quality restaurant and move to attract the “Experiential” market with a sophisticated, upscale atmosphere.
Red Lobster should add better and higher priced wine selection to cater to the Experientials. With alcohol being 12% of their meals, and 14% of Eclectics meals, (Table B) this change would increase money spent in this area because some may want to buy even more expensive wines that currently aren’t available. Concerning broadening the menu, we believe that Red Lobster should stick to a menu that focuses on freshness and quality of seafood rather than quantity of broad menu items. Freshness and quality is most important to customers when selecting a seafood restaurant (Exhibit 6). This will better attract the Experientials and also the Eclectics because both of these parties enjoy new, sophisticated unique dining experiences (Table A). Concerning wine different restaurants should definitely place a greater emphasis on wine because certain areas may have a much larger wine drinking crowd. This could be accomplished by both varying ambience and also varying