Endless Shrimp Scheme Forced Red Lobster To Overpay Owner For Shellfish: Report

Red Lobster’s former owner, a giant in the seafood world, forced the chain to make its $20 endless shrimp promotion permanent and buy its owner’s shrimp for above market rate, according to the Los Angeles Times, reporting on a recent lawsuit.

Creditors that were owed roughly $295 million when Red Lobster sought bankruptcy in 2024 are the source of the Florida lawsuit, which seeks a jury trial and was filed in May against former Red Lobster owner Thai Union Group Pcl and certain executives, the newspaper reported.

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Central to the lawsuit is Paul Kenny, a Thai Union shareholder and restaurant executive who was named interim CEO of Red Lobster in 2022, according to the Times. Kenny banned a longtime supplier to the chain, leaving Thai Union as its sole provider for nearly half of types of shrimp, the Times reported, allowing Thai Union to charge significantly more than market rate.

Kenny also, in 2023, made the bottomless shrimp promotion permanent, a move that cost the company $11 million, according to the Times.

Thai Union has denied wrongdoing and did not respond to requests for comment from the Times, the newspaper reported.

There are currently 28 Red Lobster locations in California, according to the chain’s website.

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