Key facts
- Red Lobster's Times Square flagship restaurant will close permanently on June 14.
- The restaurant has been in operation for 23 years, since 2003.
- Construction scaffolding obscured the restaurant's exterior, impacting visibility and foot traffic.
- The building's transition into a residential tower also limits the location's long-term viability.
- Red Lobster has undergone a turnaround post-bankruptcy, with sales reportedly up 10% year over year.
- The chain is continuing to examine leases and close underperforming locations.
Red Lobster is permanently closing its Times Square flagship restaurant on June 14, after 23 years of operation. The company cited extensive and prolonged construction at the location, which significantly impacted access, visibility, and foot traffic, rendering continued operations economically unsustainable. Additionally, the building's transition into a residential tower means the site lacks a viable long-term runway for a high-volume restaurant. The sprawling, multi-level restaurant, capable of seating up to 400 diners, also presents challenges in an era focused on efficiency, takeout, and delivery. This closure occurs as Red Lobster undergoes a turnaround following its 2024 bankruptcy filing. Under new CEO Damola Adamolekun, the chain has revamped its menu and reported a 10% year-over-year sales increase. However, the company continues to shrink its restaurant footprint, operating approximately 550 locations, down from around 700 previously. Despite these efforts, the chain is still examining leases and closing underperforming restaurants. Red Lobster stated it remains focused on strengthening the business and investing in the guest experience across its remaining locations, while continuing marketing efforts in the New York metro area.