NEW YORK — Red Lobster isn’t just for the seafood lover in you. It’s also for that eater in every group who just wants a chicken dish.
The chain that brought seafood to the masses is hoping to broaden its appeal by revamping its menu Oct. 15 to boost the number of dishes that cater to diners who don’t want seafood, including lighter options such as salads. Red Lobster also is increasing the number of dishes that cost less than $15 to attract customers who have cut back on spending.
The chain, which is owned by Darden Restaurants Inc., said one- quarter of the items on its menu will be nonseafood dishes, up from 8 percent. And the number of lower-cost entrees will rise to about 60 percent from 40 percent.
A lot hinges on Red Lobster’s makeover. After a long streak of healthy growth that began in the late 1980s, the casual dining segment has struggled to grow in the past few years because of oversaturation of those restaurants. People also are eating out less or opting for places such as Five Guys burgers, Panera Bread Co. and Chipotle Mexican Grill Inc. that fall somewhere between traditional sit-down restaurants and fast-food chains. Red Lobster in particular has struggled, with traffic at restaurants falling in 12 of the past 24 months.
When asked about the risks involved in making such a dramatic change to the menu, Clarence Otis, CEO at Darden, which also owns Olive Garden, said, “The biggest risk would be to not change.”
THE MENU
The idea behind Red Lobster rolling out more non-seafood options is to eliminate the “veto vote,” or that one person in a family or group of friends that rules out Red Lobster because they don’t like seafood.
Since opening its doors in 1968, Red Lobster has always had a steak dish or two on the menu. If people want a salad, the current menu offers a Caesar. That’s it. But diners who aren’t in the mood for seafood likely want a little more variety. So when the chain began the revamp about two years ago, it started by figuring out how to best fill in the gaps.
“We thought, what are the areas we’re missing?” said Michael LaDuke, Red Lobster’s executive chef.
One of the dishes that made the cut is a Parmesan-crusted Chicken Alfredo that’s served over corkscrew pasta; it’s for diners who want a chicken dish that’s a little more decadent. The Island Grilled Mahi-Mahi and Shrimp, clocking in at a modest 510 calories, is for those who want to go lighter.
Pork chops are on the menu for the first time. Ditto for the Roasted Vegetable Skewers, the first vegetarian entree that isn’t salad or pasta. And there are now three salads, including the Bar Harbor Salad, which has dried berries, pecans and blue cheese.
THE PRICES
Red Lobster’s latest update comes at a difficult time. Since 2005, consumers have been eating more meals at home and increasingly looking for cheaper options when they do eat out.
As a result, “value deals” that were popularized by fast-food chains such as McDonald’s have become more common in the casual dining industry. Applebee’s, for instance, rolled out its “2 for $20” promotion in the summer of 2008 at the height of the downturn; the response was so strong that it earned a permanent spot on the menu the following February. Chili’s made a similar deal a permanent part of its menu in August 2010.
“The consumer, it’s no secret, is financially constrained,” said Salli Setta, executive vice president of marketing at Red Lobster. “When they do go out to eat, price is much more of a factor.”
Darden, based in Orlando, Fla., has been slow to emphasize affordability at its chains. At Olive Garden, the company said the “Taste of Tuscany” promotion earlier this year was a flop because it didn’t underscore value enough. And a $1 price hike for its “Festival of Shrimp” at Red Lobster didn’t go over well either. Sales figures fell 1.8 percent and 3.9 percent for the chains respectively in the quarter.
Of course, the chain is betting that there are times when customers are willing to pay a little extra: The NY Strip Steak & Rock Lobster Tail still costs $32.99. And a new “Four-Course Feast” comes with a soup, salad, entree and dessert for $15.99.
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