Nigerian-born CEO Damola Adamolekun reflects on saving Red Lobster from bankruptcy

• Published On: 22 February 2025 at 19:29

Red Lobster has emerged from bankruptcy with a new strategic direction, guided by Damola Adamolekun, a Nigerian American CEO.

In a recent conversation, Adamolekun discussed how he took over the company, the challenges it faced, and his vision for the future.

Adamolekun, known for his success in turning around PF Chang's, was initially hired as a consultant by Fortress Investment Group, one of Red Lobster's creditors who will take ownership post-bankruptcy.

Adamolekun's expertise in managing distressed businesses prompted Fortress to offer him the CEO position.

"We presented a plan, and they liked it," Adamolekun said. "So I took over as CEO coming out of bankruptcy in September and that's what we've been working on."

A key point of debate was whether Red Lobster should transition to a fast-casual model, similar to Chipotle.

While Adamolekun acknowledged the need for speed and convenience, he also highlighted the structural challenges of such a shift.

"Our restaurants are 9,000 to 10,000 square feet, whereas Chipotle locations are approximately 1,500 to 2,000 square feet. "You can't sustain that kind of real estate footprint with Chipotle-level revenue," he explained. "Plus, we serve premium seafood like lobster and crab, which you can't sell at Chipotle prices."

However, he emphasised the significance of implementing fast-casual efficiencies, particularly in delivery, digital operations, and service speed. "Those are things people care about, and we can improve on them," he claimed.

He claimed that Red Lobster was the first company to distribute high-end seafood products across the United States.

"It was the first place you could get lobster and crab. "For a lot of people, this is their first time," he explained.

As Red Lobster emerges from bankruptcy, Adamolekun's primary focus remains on balancing cost structure with consumer demand while preserving the brand's identity.

His leadership will be critical to the company's long-term success.

Red Lobster is a casual dining restaurant chain that serves seafood in the United States.

The first Red Lobster location opened in Lakeland, Florida, in 1968.