Red Lobster keen on recovery with happy hour deal

NORTH AMERICA – Casual dining restaurant chain red Lobster has launched a happy hour deal that includes US$2 off on appetizers and US$5 drinks from 3 pm to 6 pm on weekdays as it seeks recovery after exiting Chapter 11 bankruptcy.

The restaurant chain has announced that its new happy hour will become a permanent menu feature, according to a company spokesperson.

However, the drink promotions may not be available in certain states or are offered only for limited periods due to restrictions on alcohol discounts imposed by various state and local regulations.

The introduction of happy hour is part of the chain’s strategy to enhance its menu and attract customers, following its emergence from Chapter 11 bankruptcy earlier this year.

This initiative follows a recent menu update that added seven new dishes and reintroduced old favorites across its 545 locations nationwide. The chain’s post-bankruptcy strategy focuses on simplifying its core menu, reducing promotions, and limiting limited-time offers (LTOs).

The happy hour deal includes discounted drinks such as the Classic Margarita, Top-Shelf Long Island Iced Tea, Tito’s Twisted Strawberry Lemonade, 14 oz. draft Blue Moon and Bud Light, and 6 oz. servings of Mark West Pinot Noir and Ecco Domani Pinot Grigio.

Appetizers like Lobster Flatbread, Seafood-Stuffed Mushrooms, Crab Queso, Lobster Dip, and Mozzarella Cheesesticks are eligible for a US$2 discount.

The exact discount varies by location; for instance, at a Connecticut outlet, the flatbread is priced at US$17.49 and cheesesticks at US$10.99, reflecting discounts of 11% to 18%.

Discount-based promotions have seen mixed success in the casual dining sector. Chili’s Big Smasher Burger campaign has helped it capture market share from quick-service restaurants (QSRs) and achieve notable same-store sales growth.

In contrast, Applebee’s Dollarita promotion, launched in May, did not prevent sales from declining that quarter. While some promotions emphasize value, others, like happy hours, focus on enhancing the dining experience.

These initiatives often drive traffic during slower periods and help foster customer loyalty.

The happy hour launch coincides with the appointment of Nichole Robillard as the chain’s Chief Marketing Officer, part of its ongoing post-bankruptcy restructuring.

Robillard will oversee marketing, communications, and culinary strategies as the brand embarks on a new phase of growth. CEO Damola Adamolekun praised her ability to blend creativity with operational efficiency, positioning her as a key contributor to the brand’s evolution.

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.