The Red Lobster franchise has become a popular and profitable choice for many entrepreneurs looking to invest in a restaurant business. With over 700 locations worldwide, the experience and training offered by the Red Lobster franchise are unmatched.
From the start, you’ll be welcomed into a network of successful franchisees who have successfully run their own businesses.
This article will provide all the essential information potential franchisees need about the fees, profits, total investment, training, restrictions, renewal fees, return on investments, and more related to franchising with Red Lobster.
By understanding everything involved with becoming a part of this successful chain, you can make an informed decision regarding whether or not owning a Red Lobster franchise is right for you.
Read on to learn more about the Red Lobster franchise and what it takes to become part of this successful restaurant business.
About the History Of Red Lobster
Red Lobster opened its doors in 1968 as a single restaurant in Lakeland, Florida. Founded by entrepreneurs Bill Darden and Charley Woodsby, the seafood-focused chain aimed to bring high-quality seafood to people who otherwise wouldn’t have access to it.
1970 – 2004
In 1970, Red Lobster opened two additional locations in Tampa and Miami. This quick expansion was followed by the opening an additional 12 restaurants across the United States during the 1970s.
By 1979, there were over 50 Red Lobster restaurants nationwide, setting up for major growth during the 1980s and 1990s.
During this period, Red Lobster continued to increase and expand its menu offerings beyond just fresh seafood dishes. The restaurant also added other popular items, such as steak and chicken dishes, pasta entrees, and desserts.
The chain continued to grow throughout the late 1990s and early 2000s, reaching over 700 locations worldwide by 2003. In 2004, Red Lobster was acquired by Darden Restaurants Inc., now one of the largest restaurant companies in the world.
Since then, Red Lobster has continued to expand around the world while focusing on providing high-quality seafood dishes at affordable prices. Today, there are over 800 restaurants located across the United States, Canada, Mexico, Japan, Saudi Arabia, and Qatar.
Red Lobster Franchise Model
| Initial Investment | $400k- $700k |
| Franchise-Fee | $9,500 |
| Royalty | 5% |
| Advertisement-Fee | 3-4% |
| Total Outlets | 719 |
Red Lobster Comparison
| Company | Red Lobster | Olive Garden |
|---|---|---|
| Founded In | 1968 | 1982 |
| Initial Investment | $400k- $700k | $1,000,000 |
| Franchise-Fee | $9,500 | $75,000 |
| Total Outlet | 719 | 893 |
| Annual Revenue | $2.6 Billion | $3.95 Billion |
Frequently Asked Questions
How much does it cost to start a Red Lobster Franchise?
Opening a Red Lobster franchise requires an initial investment of $400k- $700k with a franchise fee of $9500
Is Red Lobster a Franchise?
Yes, Red Lobster is a franchise. The company has been franchising since 1968 and currently operates over 700 locations worldwide.
Who is the Owner Of Red Lobster?
Red Lobster is owned by Darden Restaurants, Inc., a large restaurant company that owns and operates several popular casual dining restaurants in the United States.
Amit Gupta is the founder of DrFranchises – a digital marketing agency that helps brands rank better on Google Maps through local SEO strategies. Amit has over 11 years of experience in digital marketing, SEO, email marketing, and social media marketing. He’s also the owner of multiple franchises and has helped countless brands achieve success online. When he’s not working, Amit can be found playing with his dog.