Red Lobster Closes Times Square Location After More Than Two Decades of Operations

Red Lobster will permanently shut down its Times Square restaurant on June 14, concluding a 23-year operation at one of the world's most visited tourist destinations. The seafood chain attributed the closure to extensive construction at the building and the property's planned conversion to residential use. The decision comes as Red Lobster continues rebuilding after emerging from Chapter 11 bankruptcy protection in 2024.

Why the Flagship Location is Closing

Located at 5 Times Square on the corner of 41st Street and Seventh Avenue, the restaurant has operated since 2003 as Red Lobster's only New York City location. The company stated that years of prolonged construction at the building significantly reduced customer access, visibility, and foot traffic. Combined with the building owner's intention to convert the space to residential use, Red Lobster determined that continued operations were no longer financially viable.

The three-level, 16,482 square-foot space commanded an annual rent of $2.2 million, according to reports. Despite these pressures, employees had previously been told the location was a high-performing store and not slated for closure during the bankruptcy proceedings.

Impact on Staff and Broader Recovery Efforts

All employees at the Times Square location will be offered transfers to other Red Lobster restaurants nationwide, along with additional compensation to support their transition. The company expressed gratitude to team members and guests who contributed to the location's legacy as a showcase restaurant for the national chain.

The closure marks another chapter in Red Lobster's restructuring process. The company filed for bankruptcy in May 2024 after closing more than 100 locations due to mounting financial pressures. Under new ownership backed by Fortress Investment Group, Red Lobster emerged from Chapter 11 with 544 locations across 44 states and four Canadian provinces. CEO Damola Adamolekun has led efforts to stabilize operations and restore the brand, though the company has indicated that additional underperforming restaurants could face closures.