What Red Lobster Can Teach Us About Your Career Moves

If you've ever been to Red Lobster, you know they have amazingly good cheddar biscuits. They're addictive, and you can't eat just one.

But the restaurant chain, which has been in the news recently because of a bankruptcy filing, can also teach us an amazing lesson about taking risks in your career.

Let me explain.

In May 2014, Golden Gate Capital, a private equity firm, purchased the chain for $2.1 billion. By 2019, Red Lobster had reached an all-time high of 700 locations. But then the pandemic hit, and the restaurant never fully recovered. This year, it saw a 30% drop in customers since its peak, and the company lost a staggering $76 million in the last fiscal year.

A significant part of this loss was due to an ill-conceived all-you-can-eat shrimp offering, which cost the company $11 million. Recently, Red Lobster declared Chapter 11 bankruptcy and plans to close 99 of their locations.

Why am I bringing up Red Lobster?

At first glance, it might seem that Golden Gate Capital took a big ris…