Purple Lobster’s new CEO stated buyer suggestions has improved considerably because the restaurant chain emerged from chapter with a revamped menu and a renewed deal with hospitality.
The chain displays on-line critiques to gauge how pleased diners are. Constructive feedback now far outweigh detrimental ones, and total rankings are trending properly above the business common, Chief Govt Damola Adamolekun stated in an interview. He credited the shift partly because of the firm coaching employees to have interaction extra with prospects.
“If a visitor is available in, any person ought to be smiling to greet them on the host stand,” Adamolekun stated. “If a visitor desires to make use of the lavatory, you escort them to the lavatory — you don’t level.”
Based in Florida in 1968, Purple Lobster expanded quickly within the Nineteen Seventies and Eighties and developed a loyal following for its cheddar biscuits. It was as soon as a preeminent informal eating identify, seen as a “fancy” vacation spot to rejoice graduations and different life occasions. Extra lately, costly labor and lease prices together with a money-losing limitless shrimp promotion helped push the carefully held firm into chapter 11 in Might 2024.
It’s now seeking to reconnect with diners and entice a brand new technology of followers whilst a broader slowdown in restaurant site visitors has hit casual-dining chains notably exhausting. Adamolekun, who had led a turnaround at P.F. Chang’s, was appointed to the highest submit at Purple Lobster when it emerged from chapter in September. Gross sales and site visitors have improved since then, he stated, with out providing specifics.
Certainly one of his first strikes was refreshing the menu with new gadgets comparable to lobster pappardelle pasta and bacon-wrapped scallops. The 36-year-old additionally introduced again fan favorites together with hush puppies and popcorn shrimp, whereas conserving the staple biscuits. Different strikes have concerned launching TV advertisements, beefing up the chain’s social media presence and partnering with sports activities groups comparable to these in Ice Dice’s 3-on-3 basketball league.
Adamolekun stated he doesn’t have any speedy plans to convey again limitless shrimp, however he didn’t rule it out sooner or later, noting the supply was once worthwhile. Within the meantime, Purple Lobster has launched appetizer offers and a $5 pleased hour. It additionally has a $19.99 three-course “shrimp sensation” promotion in choose places, which does earn a living, Adamolekun stated.
“We wish to have a core worth providing always,” he stated in a Bloomberg TV interview. “Ongoing worth is vital to the visitor, particularly in a challenged macroeconomic surroundings.”
The corporate has shifted a few of its shrimp provide from China to international locations comparable to India to keep away from steep tariffs imposed by the Trump administration. Purple Lobster sources its lobster and crab from the U.S. or Canada, which is exempt from many levies beneath the United States-Mexico-Canada Settlement.
A prime precedence for Adamolekun is reworking the chain’s 545 eating places in order that they’re “energetic, vibrant, inviting, heat.” He expects renovation prices to be about $500,000 or extra for every location and stated the method might take 4 to 5 years. He goals to open the primary transformed location within the subsequent six months, doubtlessly in Atlanta. Higher-looking eating places are inclined to drive repeat enterprise, based on the CEO.
“Younger individuals particularly care about the appear and feel of a restaurant,” he stated. “They care essentially the most as a result of they need to have the ability to take images, they need to have the ability to submit on social media.”
Sirtori writes for Bloomberg.