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The unit economics of unlimited-consumption promotions in casual dining are unforgiving.
A fixed ticket price against unlimited food volume means every cover that exceeds the expected plate count eats directly into contribution margin, and the farther actual consumption runs above the model, the faster the loss compounds.
Red Lobster made Endless Shrimp a permanent offering before filing for Chapter 11 bankruptcy in 2024, and the mechanics of that format explain the outcome.
The chain relaunched Endless Shrimp at select locations in spring 2026, ran a limited test, and on August 17 began a second run at participating restaurants.
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