Once-Struggling Seafood Restaurant Chains Making A Comeback

Yahoo

09-05-2025

In the world of American fast food, it's safe to say that seafood restaurants are nowhere near as popular as more familiar establishments that specialize in mainstays like burgers or chicken. Smithsonian Ocean has highlighted a certain American squeamishness surrounding sea-based protein. This lack of popularity may be part of why seafood restaurants like Bubba Gump and Kona Grill are disappearing across the country, with many once-beloved chains declaring bankruptcy to combat the effects of inflation and changing consumer habits. But all is not lost for lovers of fish in all its forms. Certain seafood chains are making a comeback, and they're hopefully here to stay.
Restaurants like Red Lobster, Long John Silver's, and Arthur Treacher's are emerging from years-long slumps with new locations, updated menu offerings, and even refreshed aesthetics that may just reinvigorate their popularity with a new generation of patrons. Let's explore what these seafood establishments once were, how they lost their way, and how each brand is successfully chasing a fresh start.
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Starting in the 1970s, Red Lobster was many Americans' go-to for casual, affordable seafood. Thanks to offerings like its popcorn shrimp and eventually its beloved Cheddar Bay biscuits (which you can recreate at home with our recipe), this chain spread across the U.S. and brought coastal flavors inland. As decades passed, however, consumer habits changed along with the economy, and casual sit-down chains suffered from the rapid disappearance of the middle class. A May 2024 bankruptcy filing (often blamed on Red Lobster's overzealous endless shrimp promotion, at least in part) signaled to many that the seafood chain was going under, but in September 2024, the tides turned.
This was thanks to Fortress Investment Group, which acquired the Red Lobster brand through a newly created entity, RL Investor Holdings LLC, and provided $60 million to help the struggling chain get back on its proverbial feet. The month prior, Red Lobster also welcomed a new CEO — Damola Adamolekun, formerly the CEO of P.F. Chang's — and began closing restaurants to streamline operations.
Red Lobster officially exited bankruptcy on September 16, 2024 and has taken steps to revitalize its brand. One of these was trimming down the menu while reintroducing old favorites, like hush puppies, lobster pappardelle pasta, and even Lobsterfest, an annual menu promotion that wrapped up its initial return on April 20, 2025. The company also updated its tartar sauce recipe and notably discontinued its infamous endless shrimp promotion, which was made a permanent menu fixture prior to the bankruptcy filing. To attract millennial and Gen Z diners, the chain will also start "offering premium ingredients and a more vibrant dining atmosphere," per Food Chain Magazine.
Long John Silver's, now known for its fried pollock and hush puppies, opened its first location in 1969 in Lexington, Kentucky. Over the following 10 years, its footprint grew to over 1,000 restaurants. CNN Money wrote that the chain "popularized the idea of seafood as fast food," but that popularity apparently waned not long after the article's 1998 publishing. In fact, Long John Silver's filed for bankruptcy that same year (likely due to the immense debt it acquired after going private in 1989), and as recently as 2017, the brand came under fire for selling low-quality food. So, what has changed to enable a Long John Silver's resurgence?
The first sign of a revival came in 2016 when the brand revealed an updated, more mature logo at a convention in Louisville, Kentucky (which also came with a uniform fashion show). Seven years later, the company brought on a new CEO, Nate Fowler — who brought experience from major companies like Nike and US Bank — and the change in leadership may have inspired yet another brand refresh.
Long John Silver's also made some menu improvements in 2023, like using thicker fish and updating the marination process for its chicken. As revealed in a June 2024 report from QSR, the chain additionally plans to focus on "improving assets, upgrading technology, and transforming unit economics for franchisees" moving forward. The report also highlighted the restaurant's app and loyalty program, known as the "Seacret Society," through which customers can gain points and earn rewards. Self-service kiosks and digital menu boards are also on the docket, as are plans to move away from the restaurant's familiar (but arguably outdated) "fish shack" aesthetic.
Arthur Treacher's Fish & Chips, founded in 1969 in Columbus, Ohio, was named after a British actor, likely to signal to American diners that the seafood chain aimed to provide an authentic English experience. (This is particularly evident on an archived version of its website, which makes reference to its "oversized french fries known as 'Chips.'") Its specialties included battered shrimp, fish, and chicken, and at its peak in the '70s, it operated just about 800 locations. So, whatever happened to Arthur Treacher's?
The (kind of) short answer is that conflicts between England and Iceland in the mid 20th century made English-imported cod — the preferred fish in classic fish and chips — unsustainably expensive for the American chain, leading to its acquisition by Mrs. Paul's Kitchen Inc., a frozen fish and veggie manufacturer, in 1979. This marked the beginning of the brand's gradual decline (which included a 1980 bankruptcy filing), and by 2021, only one Arthur Treacher's remained, located in Cuyahoga Falls, Ohio. Fortunately, this '70s throwback is angling for a return.
Thus far, this comeback is characterized by the opening of several new locations. How the chain expanded from its one remaining location to two isn't entirely clear, but on March 30, 2025, the Arthur Treacher's Facebook page announced that its third location would be opening in Cleveland Heights, Ohio on April 1 (an event Cleveland.com clarified was "no April Fool's joke"). Additionally, hot dog mainstay Nathan's Famous has owned the Arthur Treacher's brand since 2021, resulting in a couple of hybrid locations, as well as plans to implement ghost kitchens. As James Walker, Nathan's SVP of restaurants, told QSR around the time of acquisition, "We're making sure all of the food is memorable, craveable, and Instagrammable."
Read the original article on Mashed.