Red Lobster Bankruptcy: Unlimited Shrimp And Conflicts Of Interest

Рет қаралды 68,223

Күн бұрын

Thanks to invideo AI for sponsoring this video! Just go to invideo.io/i/WallStreetMillenial and use my code “WALLSTREETMILLENNIAL50” to get twice the number of video generation credits in your first month.
In this video we analyze the rise and fall of the seafood restaurant chain Red Lobster which recently declared bankruptcy.
Free and premium investor resources, check out our website: www.differentiatedanalytics.com/
For inquires related to Differentiated Analytics email us at: founder@woodandwoodenterprises.com
Check out our second channel Broken Business Models where we discuss unusual or otherwise suspect businesses that may be unviable: / @brokenbusinessmodels
For business inquires: Mary@creatormanager.co
For other inquiries: Wallstreetmillennial@gmail.com
Check out our new podcast on Spotify: open.spotify.com/show/4UZL13d...
All materials in these videos are used for educational purposes and fall within the guidelines of fair use. No copyright infringement intended. If you are or represent the copyright owner of materials used in this video and have a problem with the use of said material, please send me an email, wallstreetmillennial.com, and we can sort it out.
#Wallstreetmillennial
------------------------------
Buddha by Kontekst / kontekstmusic
Creative Commons - Attribution-ShareAlike 3.0 Unported - CC BY-SA 3.0
Free Download / Stream: bit.ly/2Pe7mBN
Music promoted by Audio Library • Buddha - Kontekst (No ...
------------------------------
0:00 - 2:36 Intro
2:37 - 7:30 The rise of Red Lobster
7:31 - 10:01 Post-pandemic deterioration
10:02 Unlimited endless shrimp

Пікірлер: 254

@wallstreetmillennial Ай бұрын

@exentrikk Ай бұрын

Is it just me or is this video a reupload?

@bascal133 Ай бұрын

noooo we don't need more AI slop on the platform, it's like the fast fashion of videos.

@West3rror Ай бұрын

@Wallstreetmillenial Ehat an insane bad sponsor🤦‍♂️😅 Sorry, but you really must be some special kind of dumb to promote crap like this🤦‍♂️ If you actually use this tool you just lost ALL of any respect you had. Even more silly is you promote the end od your own Job.. Really..? Damn, that's really dumb🤣🤣🤣

@ryaneylee Ай бұрын

Social media platforms hosting user-generated content should ban these kinds of non-user-generated content and tools being used to generate artificial/spoofed content.

@christopherd.winnan8701 Ай бұрын

What is the point in asking viewers to leave comments if you have no intention of reading or replying to them?

@norgeek Ай бұрын

The irony of a KZfaq channel makibg a video about someone going bankrupt, while promoting a service that will definitely kill channels like that..

@dillonbussard9576 Ай бұрын

This guy loves shilling horrible products in these vids

@rabidkoalaz Ай бұрын

"Money"

@Derekzparty Ай бұрын

Invideo is terrible. It simply searches through stock videos that are already out there and pastes a bunch of them in an order that vaguely syncs up to the dialogue you wrote using a very AI sounding voice. Nothing you couldn't do yourself with more precision in a similar amount of time.

@junyaiwase Ай бұрын

Got sp0nsorblock never saw it el oh el

@HanazonoFiama Ай бұрын

Need an explanation from @wallstreetmillennial

@synonys Ай бұрын

If “Unlimited Shrimp” is code word for Private Equity Firm, then yes, Red Lobster was done in by “Unlimited Shrimp”

@cvrart Ай бұрын

unlimited shrimp = unlimited losses. They should have mixed in some Ozempic into the dipping sauce.

@chanecialifecoach3070 Ай бұрын

😂😂😂😂😂

@imaniblack Ай бұрын

😂

@AndyBlackburnart Ай бұрын

I couldn't finish the unlimited shrimp, you know when the last time it was that I couldn't eat unlimited shrimp?

@cvrart Ай бұрын

@@AndyBlackburnart don''t worry, Red Lobster finished it for you, and now Red Lobster is finished. Now they have unlimited regrets.

@Bash70 Ай бұрын

The bankruptcy wasn't caused by the unlimited shrimp deal. The private equity firm that owns the chain purchased the restaurant through a leverage buyout and straddled the chain in debt and is now selling the assets for profit while using the unlimited shrimp deal as cover.

@notorioustori Ай бұрын

Thank you!! The unlimited shrimp "fiasco" is a red herring. I was hoping this is where the video would lead. Disappointing.

@TheNaldiin Ай бұрын

They had three shrimp suppliers, then dropped the two that didn't share owners with the restaurant. It looks a lot like they wanted to get every asset out fast before a bankruptcy gave their creditors a chance.

@method341 Ай бұрын

how can they sell assets for profit when it's bankrupt?

@dylanjimenez1952 Ай бұрын

the private equity owns the land and buildings now @@method341

@Bash70 Ай бұрын

@@method341 Corporations are not like people. If you take out loans to buy a business and it goes bankrupt, you are on the hook. Corporations on the other hand are allowed to take out loans under the name of the very business they're BUYING. If the business goes under, the private equity firm that "purchased" the business is off the hook. When the assets of the failed business are sold, it goes to pay the creditors. But here's the twist, a portion of those "creditors" are other entities owned by the PE firm THEMSELVES. So not only are they debt-free, but they also profit from making the business go bankrupt.

@lucasglowacki4683 Ай бұрын

I used to work there when I was 20, back in 1993. One thing I’ll say is they had the cleanest kitchen I ever worked in. And I worked in like 10 different restaurants.

@chanecialifecoach3070 Ай бұрын

I work for Olive Garden for 12 years and they way they ran their restaurants was top tier. Never worked for a cleaner place while I was in the service industry!

@antimatter7629 Ай бұрын

Good old American culture, making restaurants regret giving a buffet

@chanecialifecoach3070 Ай бұрын

People are poor. When I worked for Olive Garden (and it was in an area with lots of farmers and generally low income area) When they would do never ending pasta bowl, no one left with anything less than 3 togo boxes 😔 But at least they were smart enough to make it limited time

@TQFMTradingStrategies Ай бұрын

@@chanecialifecoach3070how do you lose money on pasta? You can get pasta for like less than a dollar a pound lol.

@tarekyared4404 Ай бұрын

Private equity does it again. The Achilles Heel was giving up ownership in their own real estate. That devastated them during covid when traffic was extremely low, but they still had to pay rent.

@KOSMOinfinite Ай бұрын

Bingo. They also could of attained very cheap debt against the RE they owned during covid as well. Private Equity plays the same song each time. For many of these old legacy type brands the RE is the only real assets of value they have and PE knows this.

@obsidianjane4413 Ай бұрын

They got PPP loans and grants during COVID. That is why it shows rev.... err "normal" losses during 2021. So not owning properties wasn't a weakness, it just wasn't an advantage any longer.

@gibfkn Ай бұрын

It's no mistake, the CEO ran the company into the ground with the all you can eat shrimp deal!

@gigachama Ай бұрын

Red Lobster should've invested in indoor shrimp farming

@wmpx34 Ай бұрын

Mmm, antibiotics 😋

@richhands5269 Ай бұрын

My three favorite channels: Wall Street Millennial, Stock Brotha, & How Money Works. Make my week complete! 🔥 🔥 🔥

@taiwowilliams1418 Ай бұрын

I mean…wouldn’t the unlimited shrimp deal at least be for a limited time? Why let it go on for so long?

@CrossingRover Ай бұрын

Because they are owned by a large seafood supplier who sells… shrimp. I think they were trying to extract some remaining value out of the company

@PsyrenXY Ай бұрын

The parent company didn't care, they were basically throwing RL under the bus.

@wtfroflffs Ай бұрын

The company loses millions of dollars every year since 2016, goes bust, then everyone blames it on free shrimp.

@letsburn00 Ай бұрын

Its because this was caused by very wealthy people doing stuff that should be illegal and actually was during the period when the western economies did very well. This kind of "destroy a company and thousands of jobs to make $50" is messed up.

@Justin-mb4ql Ай бұрын

FREE SHRIMP? WHEN DID THAT HAPPEN?

@kevinbarry71 Ай бұрын

Private equity does it again. Amazing how leverage buyout firms were able to change their name to something less ominous sounding

@andyt1313 Ай бұрын

Golly. Private equity had a hand in the demise of an iconic business. Never could have seen that coming.

@nicholasgutierrez9940 Ай бұрын

Still mad I developed an allergy to Shrimp in 2022. Just out of nowhere. It was one of my favorite foods. And then unlimited shrimp drops.

@thewokestoner8528 Ай бұрын

You can blame Pfizer and moderna for that

@marcorock7031 Ай бұрын

@@thewokestoner8528can I also blame them for my parents divorce? 😂 Conspiracy theorists are cancer.

@thewokestoner8528 Ай бұрын

@@marcorock7031 no, your parents not loving you has nothing to do with the immune system unfortunately.

@thewokestoner8528 Ай бұрын

@@marcorock7031 by the way if you did a quick google search you would realise that it's a documented phenomenon. You trolls calling people conspiracy theorists online are just as stupid as the people you try to insult 😂. No wonder your parents don't love you lol.

@thewokestoner8528 Ай бұрын

@@marcorock7031 If you did a quick google search you would realise it's a documented phenomenon. Maybe next time do your due diligence before judging. Maybe your parents would love you if you weren't so stupid lol.

@cheddarcheese Ай бұрын

They should have done it like olive garden. Unlimited soup, but you need to finish your bowl before another one. Red Lobster should have done 5 shrimp and bowl of noodles for $20.

@awesomeblossom2417 Ай бұрын

I had a lot of great memories at red lobster, but the last time I was there, it was really sad. There was no one there and our food took like 45 mins to come out. Service was also the worst.

@alimaleki217 Ай бұрын

Thai Union (major shrimp producer) forced Red Lobster to stop buying shrimp from other sources. Then they forced them to add all you can eat shrimp to their permanent menu despite objections from experienced Red Lobster employees. Red Lobster wasn’t doing great to begin with but Golden Gate Capital and Thai Union stabbed them in the back!

@YourFinanceGuide Ай бұрын

Rookie mistake, not fleecing their customers. Hopefully more businesses learn from this mistake and raise their prices.

@MakerInMotion Ай бұрын

I paid $16 for a meal at McDonald's this week. They've got it figured out.

@jamesbillingsby8043 Ай бұрын

When the government prints money to support corporations success while completely eliminating the middle class. That's the time to increase prices 100% and blame it on inflation. Genuinely every other company did it and had record profits while the economy crumbled and destroyed the lives of millions of Americans.

@SlagNasty Ай бұрын

The Supply Side squeeze has always existed they are just open about it now. @MakerInMotion

@gikigill788 Ай бұрын

Yeah, anything less than $50/meal is unacceptable.

@eternalv10killa Ай бұрын

Hahaha the satire is killing me! 😂

@Entropy5 Ай бұрын

The irony of your sponsor choice is not lost on us.

@wmpx34 Ай бұрын

I swear at this point he’s just doing it to piss people off lol. I love it. No fucks given Anyone who’s getting bamboozled by sponsored ads on YT is a lost cause anyway. We should embrace our Ready Player One future!

@samsonsoturian6013 Ай бұрын

InvideoAI sounds like they slapped a ChatGBT onto a cracked off-the-shelf video editor and are trying to pass it off as their own.

@arthurgphotography Ай бұрын

A Private equity firm and Tik Tok influencers formed an a**hole alliance, got it.

@HappyGoLuckyPanda Ай бұрын

Okay I thought you are an AI before you promoted invideo AI

@williambell3304 Ай бұрын

Thank you for using the ad to inform me that your shorts will be exclusively no-effort, low-quality AI slop. I now know never to touch them.

@robfromwpg Ай бұрын

how about - decrease in quality of food led to the decrease in customer traffic...

@christiancsq Ай бұрын

I don't know why companies refuse to price unlimited deals higher

@-13eNnY- Ай бұрын

I honestly have only ever gone to Red Lobster when the unlimited shrimp deal was on. They shouldn't let customers stay for as long as they want though. That's just bad business.

@christopherfoley4355 Ай бұрын

Starting to think this dude was AI all along…

@Brian-li5up Ай бұрын

The KZfaqrs filming themselves eating all that shrimp are gross.

@Mr.Showbiz Ай бұрын

The guy who obtained a cost per shrimp of 12.5cents should be the new ceo with financial wizardry like that

@darryljorden9177 Ай бұрын

You call it conflict of interest. They would call it "synergy".

@bipolarkeyboard Ай бұрын

lol i worked at red lobster for like 7 months in high school, it was pure hell but also a good learning experience. We closed at 11:30 but sometimes we would get out of there just before 2AM. I still have a lot of respect for those in the kitchen or any customer service in general.

@cpm1003 Ай бұрын

I never watch KZfaq shorts, even from channels I like and am subscribed to.

@user-kq4hf8se5b Ай бұрын

IHOP in my town did all you can eat shrimp. I went with friends and couldn't leave. The shrimp was tiny frozen shrimp imported from overseas. It sucked and when the waitress came back to refill shrimp, i said just bring me fries this time. I live in South Mississippi with fresh jumbo shrimp in the Gulf and i get frozen junk.

@leroyjenkins6247 Ай бұрын

Whoever made the rule that you can get unlimited shrimp, but not unlimited sides needs to be fired. I'm pretty sure the sides are significantly cheaper than the actual shrimp.

@4olufade Ай бұрын

So when the CEO wants to get fired they should do an "unlimited" promotion

@StreyX Ай бұрын

The video kinda understates how hard the chain was screwed by private equity.

@bnwo Ай бұрын

It's because it's just a couple of kids thinking they know it all

@ooluta7578 Ай бұрын

Red Lobster has been brought down by a private equity firm, not unlimited shrimp.

@showusyaguppysaustralia1515 Ай бұрын

So if they buy 20% of the lobster available does that mean now they wont be so the price myt come down due to a 20% increse in stock to sell?

@mrsmith6532 Ай бұрын

Not watching video sponsored by ai

@junyaiwase Ай бұрын

Good point

@kevinbarry71 Ай бұрын

I despise KZfaq shorts. I am so tired of being tricked into clicking one not knowing it is a short.

@kendalson7100 Ай бұрын

With restaurants like Bonefish Grill Red Lobster has more competition than it used to. They must differentiate themselves better.

@jaredfischer6895 Ай бұрын

The CEO underestimated how much crab-people could eat

@chargermopar Ай бұрын

I rarely if ever eat out. The last time I was in a red Lobster was in 2006. The shrimp there is so full of coatings that it is inedible to me . Today I just wait until shrimp is on sale for 2-3 dollars a pound and buy it in 5 pound boxes. Fried in beef tallow it's so much tastier and cheaper. I hate being served by a waiter/waitress so if I do go to a restaurant it HAS to be a buffet. I want to pay when walking in and never have to worry about a tip or anything else. I eat and leave within one hour.

@yantao-junliang8563 Ай бұрын

went there last Friday around 8pm, paper wrap silverware had bugs crawling on it. kind of feel why it went downhill.

@LuciFeric137 Ай бұрын

"Sir, we're losing money on the shrimp! No worries, Digby. We'll make it up in volume!

@stevenperry9762 Ай бұрын

Phony Stark's armor composition: Government subsidies, ketamine, and vapor-ware. Did I hear Howard Hughes name in there, somewhere?

@user-wd1no8ik4v Ай бұрын

good shrimp!

@Eli_Skipjack Ай бұрын

I personally don’t like how blame for companies struggling always (at least in part) gets put on higher wages. If a company can’t pay all their employees a living wage, then that shows failure on part of the company, not the fault of the employees wanting to be compensated fairly. Without any cooks and waiters, a restaurant can’t function. It’s basic decency to give living wages to the people who make the business able to operate!

@user-wd1no8ik4v Ай бұрын

they got good shrimp!

@HardPourCorn Ай бұрын

They got what kind of shrimp, again?

@SgtCrypto Ай бұрын

It was the shrimp 🍤 it was private equity firm selling the real estate

@Cyber_Samurai Ай бұрын

First time I'm hearing about unlimited shrimp

@cvrart Ай бұрын

I am.... were they crazy?!?!?! How could anyone underestimate the amount of crab a person can eat!??!? Crab is DELICIOUS!!!! If they invite me to eat them into bankruptcy, I will happily oblige them.

@calebbarnhouse496 Ай бұрын

Because he's wrong, it was corporate management and debt, basically red lobster was bought to shove full of debt, then stripped for parts to maximize profit, the shrimp deal is just a boogeyman people blame

@cvrart Ай бұрын

@@calebbarnhouse496 so, the shrimp was just a red herring?

@calebbarnhouse496 Ай бұрын

@@cvrart more of a green hearing if you were red green colorblind

@crypto_que Ай бұрын

It's crazy how people thought Red Lobster was a fancy restaurant. People used to go into outrage on Twitter when you told them it wasn't. One user actually posted that RL was "great" until people started reading ratings on the internet. He actually blamed people for exposing RL by sharing information. LOL.

@danhorrocks3431 Ай бұрын

It's cool when you help peddle scams and also talk about scams

@ThePurplePeopleEater- Ай бұрын

Chicken of The Sea

@adam13magic63 Ай бұрын

Got to dislike that sponsor is so fucking cringe.

@rook1196 Ай бұрын

the opportunity to gorge yourself on mediocre shrimp was the only reason people actually went to Red Lobster. Quality at the place was drowned in the bathtub, as the fish was leftovers from the sysco truck that couldn't even be sold to school cafeterias.

@MCorpReview Ай бұрын

Your analysis is of the gods!!! I hold Thai Union 😂so sad 😢they made a big deal about the divestment and how everything will be hunky dory going forward but u need to watch Thai financial media to see that

@logwhitley Ай бұрын

This sale and lease back has bankrupted so many companies

@Thekitty0706fan Ай бұрын

First time i see someone doing an ad for a AI company, kinda sad to see a content creator promote and also use lazy AI tools that will probably at some point flood the site so bad you won’t be able to find real content between it. Like steam’s new games list being complete slop.

@TheKiiS Ай бұрын

I clap with Red Lobster 🦞

@mr.polakstunts8305 Ай бұрын

The irony of WSM hating on ai, then getting a sponsorship from and AI company

@UncleJoeLITE Ай бұрын

Is this script AI generated? It's hard to know after that intro.

@Bewilderebeest Ай бұрын

Sooooo … anyone else not going to watch the shorts from this channel? 😬

@Vednier Ай бұрын

"Offer Unlimited Shrimp - expect customers to pay and eat nothing" - that can go wrong?

@IsaiahSmalley Ай бұрын

I like it when Patrick Boyle did it 😬

@render8 Ай бұрын

Red lobster should have bought Thia Union... Not the other way around...🤷

@serchsource8744 Ай бұрын

In America...its not a restaurant....its a business...so i rarely went out to eat. In europe, a cook invest in skills and knowledge....its a communal thing. In America, a cook invest in stocks and other commodities. Its a business!

@marques10010 Ай бұрын

Do you know how many calories that is... If they collapse and die who's fault is it???

@cheddarcheese Ай бұрын

I have not been to Red Lobster...ever.

@donbernie9346 Ай бұрын

Answer was easy, unlimited shrimp during 3hours will allow you to get more customers inside and set a limit to the possible losses

@kk22001 Ай бұрын

Golden gate capital - well done lol

@testattestdotnet Ай бұрын

Wall Street Millennial's Conflict of Interest is his refusal to blame private equity for killing red lobster. How Money Works wouldn't have done them dirty like that.

@silversurfer8237 Ай бұрын

Great content but a sad story. Red Lobster offered good quality food at a decent price. Leveraging them up was a bad thing: Leverage kills when the business drops.

@Vednier Ай бұрын

Hear "AI" - click Thumbs Down! Also, this Invideo AI is reason why there is so much sloppy pointless video just for showing ads on KZfaq.

@JFirn86Q Ай бұрын

Sounds like the end started with Golden Gate Capital took over in 2014 and sold all the land for a quick buck. From there it's going to go downhill without significant growth of profitability.

@locobob Ай бұрын

So this is why we can’t have nice things.

@JJ-ds5fs Ай бұрын

Thai Union robbed them, related party transactions are something that would require more disclose for a public company but here they have been able to cover up the details and just blame the shrimp promotion

@AlanTheBeast100 Ай бұрын

Red Lobster left Quebec 27 years ago due to poor revenue. Much better choices here than that dreck. They stayed in Ontario. hmmm. Olive Garden didn't stand a chance in Quebec - esp. Montreal with dozens of authentic Italian restaurants all over the quality/price map.

@dosmastrify Ай бұрын

You guys just do this or am I mix me up with Robert Boyle

@TheNaldiin Ай бұрын

You mean Patrick? Pretty sure he covered recently.

@dylanjimenez1952 Ай бұрын

never trust private equity

@SpiritusMundi3 Ай бұрын

Appreciate your work.

@UncleJoeLITE Ай бұрын

Great! With the paid version of your sponsor, I can create one of your videos myself. Just paste a few AI videos of your voice together. "Wall St Millennial" anyone??? Dunno about this sponsor.

@sutats Ай бұрын

Something smells fishy.

@psp4150 Ай бұрын

Why are you selling out and saying this had anything to do with food? It was the bankers.

@andrewallbright Ай бұрын

Operating a red lobster isn’t shrimple. Not shrimple at all.

@Gilly459 Ай бұрын

Landchads win again!

@murraymadness4674 Ай бұрын

'unlimited shrimp' is why they are going out of business? What level of incompentent managment would keep losing money with their bad decisions?

@TheNaldiin Ай бұрын

They've been going out of business slowly for more than a decade. Unlimited Shrimp is how their owners got the remaining cash out of a dying company to their main enterprise. The last puff of a used cigarette butt as, I think, Warren Buffet described it.

@kimberlyjones4534 Ай бұрын

I’m favored financially with Bitcoin ETFs approval, Thank you buddy. $12,000 monthly profit regardless of how bad it gets on the economy.

@jamesadams9328 Ай бұрын

Same here, I believe the Bitcoin ETFs approval will be life changing opportunity for us, with my current portfolio made from my investments with my personal financial advisor 1 totally agree with you

@JaneWhitney-pp1mn Ай бұрын

YES!!! That's exactly her name ( Audrey lauren) so many people have recommended highly about her and am just starting with her 😊 from Brisbane Australia 🇦🇺

@Chrisbaker135 Ай бұрын

I’m a long term investor, I withdrew my profits of over $61,000 during the COVID 19 pandemic ….

@sarahjonh6179 Ай бұрын

She is my family’ personal Broker and also a personal Broker to many families in the United States, she is a licensed broker and a FINRA AGENT in the United States…

@michaelknox9234 Ай бұрын

A lot of people still make massive profit from the crypto market, all you really need is a relevant information and some < professional advice. ‹ it's totally inappropriate for investors to hang on while suffering from dip during significant

@dennispratt559 Ай бұрын

We all know what happened to Red Lobster.We're not stupid.

@rhobot75 Ай бұрын

Am a subscriber, and want to watch this vid, but always found RL repulsive. Never went. Private equity, another one bites the pavement. And here I am commenting for the algo.

@christopherd.winnan8701 Ай бұрын

Claiming that crabs cannot be farmed is simply not true. There are massive RAS mud crab farms in SEA and this is one of fastest growing and most innovative parts of the industry. Not to mention the domestic crab condo tech being actively developed in Singapore and Thailand. To claim otherwise is disingenuous and not helping mariculture innovators in the least. Please try to remedy this in the future.

@FaustsKanaal Ай бұрын

Shorts suck. They are for ADHD youths, informative long form videos like you make have a very different demographic as an audience. Usually older.

@justinbarion2269 Ай бұрын

James Corbin eating away his problems again....

@Noah_E Ай бұрын

Who would have thought? Selling garbage quality food for too much money in dingy restaurants with terrible staff wasn't a money maker. Olive Garden should be the next to fall for the same reasons, except they were designed to be as loud as possible which makes them even less appealing as a sit-down experience.