Red Lobster has appointed a new chief financial officer (CFO) to help lead the company as it continues to plot a path forward from bankruptcy.
On 23 October, Orlando, Florida, U.S.A.-based Red Lobster appointed Bob Baker, the former CFO at Checkers & Rally’s in Tampa, Florida, and Benihana in Miami, Florida, as its new CFO.
Baker is a “seasoned leader with diverse experience across full-service, fast-casual, and quick-service restaurant brands,” Red Lobster said.
Prior to working at Checkers & Rally’s and Benihana, Baker held dual roles as president and CFO at Cafe Rio Mexican Grill, where he led the brand's expansion from six to over 70 locations. He also spent 16 years at YUM! Brands in roles that included finance, operations, mergers and acquisitons, and accounting.
The move comes shortly after Fortress Credit – the firm that bought Red Lobster in July – appointed Damola Adamolekun CEO of RL Investor Holdings, the entity established by Fortress affiliates, TCW Private Credit, and Blue Torch to aquire the struggling seafood company. Adamolekun is the former CEO of restaurant chain P.F. Chang’s.
Adamolekun touted Baker's accomplishments and expertise.
He brings “not only deep financial expertise but also a passion for restaurant operations," Adamolekun said. "His wealth of experience gained across the restaurant industry, combined with his hands-on approach, will be invaluable as we continue to position Red Lobster for long-term growth.”
It also appointed Nichole Robillard as chief marketing officer (CMO). Robillard has more than 20 years of experience, most recently leading Smokey Bones through a rebranding and transformation. She began her early career on the operations side of the restaurant industry, including opening a farm-to-table restaurant in Washington, D.C., Red Lobster said.
In addition to shoring up Red Lobster’s executive leadership team, Adamolekun said the company is focused on infrastructure and technology investment, as well as streamlining its menu “in a very intelligent way.”
While Red Lobster focuses on a financial turnaround, many other restaurant chains are struggling financially and closing locations.
TGI Fridays, which serves a multitude of seafood dishes, is lining up debtor-in-possession financing with its lenders ahead of a Chapter 11 bankruptcy filing, people with knowledge of the situation told Bloomberg.
Rubio’s Restaurants closed 48 California restaurants and filed for Chapter 11 bankruptcy in June. The Original Fish Taco bought the company for USD 40 million (EUR 37 million) in August.
It is not only seafood-focused restaurant chains that are struggling. Iconic diner Denny’s will close up to 150 restaurants by 2025, according to Restaurant Business. Several other casual restaurant chains, including Shari’s, Hooters, and Bloomin’ Brands, have closed locations due to lackluster traffic and sales, the magazine said.
Nearly half – 48 percent – of small business owners couldn’t pay their rent in September, according to Alignable’s September Revenue & Rent Report. That's the highest number reported in three years. About 43 percent of independent restaurants reported rent delinquency in September, compared to 33 percent in July.
