Did Red Lobster purposefully doom itself with the infamous Endless Shrimp deal?

A new lawsuit accuses Thai Union Group, the former majority stakeholder of Red Lobster, of exploiting the company for its value, particularly as it faced financial difficulties. The controversy centers around Red Lobster’s Everyday Endless Shrimp deal, which became a permanent menu item in June 2023, offering unlimited shrimp for $20. This promotion puzzled many, as it seemed financially unsustainable. The lawsuit suggests that the deal was intentionally unprofitable, raising questions about the motives behind such a business decision. This case highlights the challenges and potential pitfalls companies face when trying to attract customers with seemingly too-good-to-be-true offers, especially when financial stability is at stake. QUESTION: Why do you think companies might offer deals that seem unprofitable, and what impact could this have on their long-term success?