chapotraphouse

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RIP Red Lobster, you died doing what you loved (hexbear.net)

submitted 5 months ago by [email protected] to c/[email protected]

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catastrophically underestimating the cost of a poorly thought-out deal on cheap shellfish

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[–] [email protected] 47 points 5 months ago (5 children)

from wikipedia:

Red Lobster has offered an endless snow crab leg promotion twice in its history (as of September 2003). However, in 2003, the promotion resulted in its parent company, Darden Restaurants, taking a $3 million charge to third-quarter earnings, resulting in president Edna Morris's departure from the company.

The chain also underestimated how many times a customer would order more. Further complicating matters at the restaurant level was the time customers spent table-side in the restaurant cracking crab legs. This resulted in increased waiting times in the lobby and overall diminished customer capacity per hour.

[–] [email protected] 9 points 5 months ago

Did they do test runs of the all you can eat deal in a smaller subset of locations? Wonder how they could've have estimated that poorly.

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