Red Lobster Problem DefinitionRed Lobster was a restaurant chain founded in 1968 by Bill Darden to offer high-quality, affordable seafood to a broad, mainstream base of American consumers. With expert restaurant management skills and an advanced seafood distribution system, Red Lobster was able to prepare and serve food quickly and at low cost so that mainstream consumers could afford high-end seafood variations. quality. Immediate success in 1968 led to rapid expansion across America. By the end of 2010, Red Lobster had built 694 restaurants in both the United States and Canada and had become routine for millions of Americans. However, with the dramatic decline in seafood costs caused by the rise of aquaculture, competition from restaurant chains such as Chili's, Applebee's and Outback is increasing. By 2004, Red Lobster's store sales and guest experience had declined slightly. New CEO Lopdrup and the survey conducted by his marketing team found that most consumers viewed Red Lobster as a low-end establishment serving mass-produced fried frozen food. In response, CEO Lopdrup launched a three-phase plan that includes operational improvements, product repositioning and restaurant renovation. The plan worked well for Red Lobster. In 2010, customer satisfaction increased 14 percentage points compared to 2004 and created great operational capacity potential. With new marketing research, Red Lobster's market team has discovered a new potential consumer segment: experiential, who are quite affluent customers with high culinary standards and high expectations in terms of service and atmosphere. However, opportunities come with risks, some traditional customers have complained about Red Lobster's change. That said, there are five questions regarding the segmented... middle of the paper... presented to customers along with menu items. Additionally, employees should be trained with basic wine knowledge. Expanding the menu beyond fish dishes is also a good choice. As I mentioned in the previous part, in 2012 Red Lobster actually increased the percentage of non-seafood products to a quarter of the menu. I believe these changes could help the company continue to expand into a new segment without losing a huge amount of existing customers. For the renovation, Red Lobster could come up with a plan with different priorities based on different demographics and customer bases. Renovation is expected to accelerate in areas with more experiential potential customers. For other areas with more traditional customers, the remodeling should also continue but with a lower priority. Because the renovation will not only attract new customers, but also provide better service to existing customers.