The Backstory: Greed, Gluttony And The Crackup Of Red Lobster
Image Source: Lisa Sheehan
The fall of America's iconic seafood chain began in 2014 when parent company, Darden, sold it to private equity firm, Golden Gate Capital. Golden Gate enriched its shareholders by leasing the restaurant real estate for $1.5 billion. That saddled location managers with high rent expenses. Revenues soon dipped, so Golden Gate sold a majority stake to Thai Union, one of the world's (and Red Lobster's) largest seafood suppliers. The chain continued to lose market share, and by the end of the pandemic, its customer count had plunged 30%. Thai Union threw a Hail Mary to enrich its own coffers by making Red Lobster's "Endless Shrimp" promotion a permanent fixture (selling the chain more shrimp). Diners swarmed, expenses skyrocketed, revenues tanked, and in May 2024, the chain filed for bankruptcy, closing 140 of its nearly 700 locations. In 2014, the chain had been valued at $2.1 billion. Greed and mismanagement devalued the brand so much that last month Red Lobster was sold to Manhattan's Fortress Investment Group for the bargain price of just $375 million. A sad fish tale, indeed.
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Chicken Sandwiches Are Now On More Restaurant Menus Than Burgers, Research Finds
Image Source: Restaurant Business
Fried chicken sandwiches now appear on 47% of US restaurant menus, according to research firm Technomic, while burgers are on only 41% and are tracking downward. The switch happened during the "Fried Chicken Sandwich Wars" at the height of the pandemic, when chicken sandwiches on menus increased by 10%. Consumers still order burgers twice as often as chicken sandwiches, according to market research company Circana, but restaurants have figured out that a fried chicken sandwich will bring in customers who might not want a burger but aren’t looking for a salad either.
2024 James Beard Award Winners Announced
Image Source: Lille Allen
The "Oscars of the food world" were held in Chicago in early June, where Dakar NOLA won Best New Restaurant, Michael Rafidi of Washington DC's Albi won Outstanding Chef, and the Outstanding Restaurant award went to Langbaan in Portland, OR. Over the same weekend, the James Beard Foundation announced its Media Award winners, including nods for the best cookbooks, food journalism, and broadcast media around the country. Full list here. Congrats all!
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Department of Justice Makes Millions More Restaurant Workers Eligible For Overtime Pay
Image Source: Courtesy of Full Service Restaurant
Up to now, US employers have only been required to issue overtime pay to employees who make less than $35,568 a year. But as of July 1, that salary cap bumps to $43,888 a year for certain executive, administrative and professional employees, according to the US Labor Department. At the start of next year, the cap rises to $58,656 and automatically increases every three years in pace with inflation. This new threshold is the largest federal expansion of overtime pay in decades, making millions more restaurant workers eligible to increase their wages. Of course, the National Restaurant Association opposes the rule, as restaurateurs are already burdened with rising food costs and labor challenges. But paying employees for overtime hours is simply the right thing to do, isn't it?
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São Paulo's Janaína Torres Named World's Best Female Chef 2024
Image Source: Marcus Steinmeyer
"The World's 50 Best" organization ranks Brazil's A Casa do Porco the world's #12 restaurant, and recently named its chef, Janaína Torres, the World's Best Female Chef for 2024. Torres' temple of pork features wood-fired slow-roasted whole pig, artisan sausages, and other odes to porcine passion. The chef opened her first restaurant, O Bar da Dona Onça, in 2008, and now also runs Hot Pork (an organic hotdog kiosk), Sorveteria do Centro ice cream shop, and the Merenda da Cidade canteen, all in downtown São Paulo where she grew up. This award is voted on by 1,080 independent restaurant industry experts worldwide and will help Torres continue her work widening the culinary table as an advocate for dining accessibility, social inclusivity, and food education. Congrats Chef!
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