Recent Marketing and Operating Activities at Red Lobster
Recent Marketing and Operating Activities at Red Lobster
Contents
Introduction………………………………………………………………………………...Page 3
Keeping Red Lobster Current…………………………………………………………….Page 3
Movement towards Sustainability………………………………………………………...Page 4
Marketing Blunders of 2010……………………………………………………………....Page 5
Conclusion………………………………………………………………………………….Page 6
Personal Thoughts…………………………………………………………………………Page 6
References…………………………………………………………………………………..Page 8
Introduction
The first Red Lobster restaurant opened was opened in 1968 by company found Bill Darden. In 1995, three popular restaurants, Red Lobster, Olive Garden and Bahama Breeze became part of Darden Restaurants. With large contributions by its popular seafood restaurant, Darden had revenues of approximately 7.1 billion dollars in 20101. Today there are nearly 700 Red Lobster restaurants between the U.S. and Canada.6 This term paper will focus on the following three topics: keeping Red Lobster current, its movement towards sustainability and its marketing blunders of 2010.
Keeping Red Lobster Current
As the economic downfall continues to force consumers to cut spending, eating out is one of the first activities to be cut from their budgets. While many restaurants are losing profits, two of Darden’s companies, Red Lobster and Olive Garden, have held strong.2, 3
Darden has achieved this success despite economic challenges by revamping Red Lobster’s brand image as a more upscale, sleek, high quality restaurant that will attract both wealthier and younger diners9. Red Lobster announced its plans to remodel all of its restaurants by 20148 moving from its colorful décor to more sophisticated nautical décor including dark woods, a new contemporary logo and soft modern lighting9. Darden CEO, Clarence Otis, was quoted in USA Today saying companies must, “Be prepared for cyclical downturns by offering a range from value to premium. When appropriate, emphasize the value offerings,” and Red Lobster management is
Contents
Introduction………………………………………………………………………………...Page 3
Keeping Red Lobster Current…………………………………………………………….Page 3
Movement towards Sustainability………………………………………………………...Page 4
Marketing Blunders of 2010……………………………………………………………....Page 5
Conclusion………………………………………………………………………………….Page 6
Personal Thoughts…………………………………………………………………………Page 6
References…………………………………………………………………………………..Page 8
Introduction
The first Red Lobster restaurant opened was opened in 1968 by company found Bill Darden. In 1995, three popular restaurants, Red Lobster, Olive Garden and Bahama Breeze became part of Darden Restaurants. With large contributions by its popular seafood restaurant, Darden had revenues of approximately 7.1 billion dollars in 20101. Today there are nearly 700 Red Lobster restaurants between the U.S. and Canada.6 This term paper will focus on the following three topics: keeping Red Lobster current, its movement towards sustainability and its marketing blunders of 2010.
Keeping Red Lobster Current
As the economic downfall continues to force consumers to cut spending, eating out is one of the first activities to be cut from their budgets. While many restaurants are losing profits, two of Darden’s companies, Red Lobster and Olive Garden, have held strong.2, 3
Darden has achieved this success despite economic challenges by revamping Red Lobster’s brand image as a more upscale, sleek, high quality restaurant that will attract both wealthier and younger diners9. Red Lobster announced its plans to remodel all of its restaurants by 20148 moving from its colorful décor to more sophisticated nautical décor including dark woods, a new contemporary logo and soft modern lighting9. Darden CEO, Clarence Otis, was quoted in USA Today saying companies must, “Be prepared for cyclical downturns by offering a range from value to premium. When appropriate, emphasize the value offerings,” and Red Lobster management is
References: 1. "An Argument for Going Long Darden Restaurants." Seeking Alpha (January 26, 2011), (www.seekingalpha.com). 2. Jargon, Julie. "Restaurants Serve Perks for Loyalty." The Wall Street Journal (August 9, 2010), (www.wsj.com). 3. Jones, Del. "Good Service Vital during Downturn." USA Today (August 19, 2009), (As found in EBSCOhost). 4. Lukovitz, Karlene. "Darden Continues To Hone Red Lobster Strategy." MediaPost (December 21, 2010), (www.mediapost.com). 5. Pedicini, Sandra. "Darden Works to Keep Seafood Supply Flowing." OrlandoSentinel (May 11, 2009), (www.articles.orlandosentinel.com). 6. "The History of Red Lobster." Red Lobster: Our History (2011), (www.redlobster.com). 7. Tice, Carol. "Red Lobster Could Get Pinched Pen-Raising Its Own Lobsters." The CBS Interactive Business Network (July 9, 2010), (www.bnet.com). 8. "Red Lobster Debuts New Restaurant Design Inspired by the New England Coast." Restaurant Magazine, WordPress. (2011), (www.restaurantmagazine.com). 9. "Red Lobster Fishes For Upscale Diners." OrlandoSentinel (February 16, 2009), (www.articles.orlandosentinel.com). 10. "Red Lobster, Olive Garden, Longhorn Launch ‘Green’ Restaurant Design Initiative." Environmental Leader (February 24, 2010), (www.environmentalleader.com).