Red Lobster's Endless Shrimp
How Much Do You Have to Eat to Put Red Lobster in the Hole
Red Lobster, a mid-priced, seafood restaurant chain headquartered in the United States, has over 700 outlets worldwide and probably uses more farmed shrimp than any other restaurant in the world.
All the Shrimp You Can Eat for $15.99
The “Eater” website asks: “How much shrimp would I have to eat at Red Lobster’s Endless Shrimp promotion to make it a net financial loss for the restaurant?”
The website got almost 3,000 responses. Here are some of them:
• America: Where we have so much food that we’ll eat as much as possible just to give a restaurant a net loss.
• My friend who works there says the record he witnessed was 782 shrimp. The guys were there for 5.5 hours.
• In 2009 the shrimp price was about $3.20 per pound, so based on that number you’d have to eat 5 pounds of shrimp to make it a net loss. But due to the oil spill the price has risen to about $4.10 per pound, so that’s only 3.9 pounds of shrimp, but that’s still a lot of shrimp. I left out transportation, fixed costs, overhead and many other variables because I have no idea what they are, and instead of making an huge miscalculation, I omitted them.
• I’m a chef. Currently I pay just shy of $6.00 a pound for 26/30 peeled and deveined shrimp. A shell-on shrimp is about $5.40 a pound. I’m not sure what size shrimp Red Lobster uses, or how it is prepared, but I’m guessing it has a pretty big discount from what I pay. My guess is they use 31/35 shrimp and probably pay in the low $4.00 a pound range. I think that would put its breakeven point near 132 shrimp, but that’s not including any of the other ingredients that go into it, or side orders.
• I work at Red Lobster. I don’t know the specifics anymore, but our discount is huge. A big savings comes from the fact that all the shrimp is farmed, peeled and processed in Asia. It comes to the stores already breaded, or with the sauce frozen to the shrimp.
• If there is breading, it might boot the mass one has to eat. Also, food costs are only part of the expense of operating a restaurant. If they broke-even on the shrimp, the meal was a loss on labor. If he buys a $1.50 soda or a three-dollar beer, they profited.
• I work at Red Lobster, and I’m pretty sure our shrimp are pretty cheap. They all come frozen and pre-made, so I assume they are pumped out at a factory somewhere. Scampi meals are frozen in butter, the skewers are already on sticks and the fried, coconut and popcorn shrimp are pre-breaded and frozen. They probably get prepackaged at farm facilities in Thailand (or a third world country of the like). Disclosure: I used to work for a shrimp import business. The shrimp arrived in shipping containers pre-packed. About 30,000 pounds worth cost $0.50 to $2.00 a pound, depending on the preparation and the size of the shrimp if I remember right.
• I have been kicked out of Red Lobster twice. The last time I went to endless shrimp, I ate 17 plates of shrimp and the manager came out an politely asked me to leave. After some gentle resistance, he reminded me that they had the right to refuse service to anyone. All you can eat is not legally all you can eat; they can and will cut you off.
• I work at a Red Lobster, and for the past six years, four guys have come in for the promotion and together they eat 2,500 shrimp. A refill of scampi, fried, or grilled shrimp contain ten shrimp each. Popcorn and coconut shrimp refills are pretty much just a hand full. We don’t really flinch when this happens, aside from the fact that four people actually ate that many shrimp. We make so much money from the other products on the menu, it doesn’t really matter how many shrimp people eat. However, many years ago we promoted “Endless Snow Crab”, and that almost destroyed the company.
• I work at a Red Lobster in southeast Missouri and two weeks ago a man ate roughly 43 refills. That’s more than 430 shrimp, and my manager said that the company still came out on top. I won’t pretend to know how much we pay for shrimp, but I do know the markup is quite high.
• I’m a Red Lobster waiter. I have no idea how much we pay for shrimp. I don’t think they want us to know. I do know that most people who order endless shrimp don’t order more than one refill, so that wouldn’t be costing the company very much money, if any at all. Most people order endless shrimp and then don’t order any refills. Most of the time they could have ordered it another way, and it would have cost them $8 less.
• I’ve had people bring in their own to-go containers and stash shrimp. Another server had a woman go into labor while her husband was ordering refills. I had a boy order 17 refills. He only stopped because his parents made him. I guess 170 shrimp was their cutoff. The people who come out for endless shrimp are people that never leave the house. On Friday and Saturday nights they come down from the hills and come out in large crowds. They’ll tip you 5% because they just don’t know better. They will make you never want to eat again.
• A coworker of mine had a woman at her table who kept ordering refills. The woman had a large shopping bag and her purse on the table. My coworker just assumed that another server was picking up her dirty plates because there were never any dirty plates left on the table. After three rounds, the coworker saw this woman move her bag to reveal nine plates full of shrimp stacked on top of each other. She then started boxing them up while we all watched.
• My buddy got this deal once and ate so much shrimp that they cut him off. By that time, he had eaten enough shrimp that he had to go to the hospital and have his stomach pumped. Despite this, he actually had his father call and complain about not receiving unlimited shrimp. Red Lobster decided to comp him a free meal so he did the exact same thing. He got the unlimited shrimp again and had to go to the hospital afterwards again.
• Just keep eating till the waiter says, “Sir, the ocean [farm] just called. They’re running out of shrimp.”
Source: Eater.com. The Math of Endless Shrimp. October 13, 2011.